OFFICE MARKET STARTS TO RECOVER AS EMPLOYEES RETURN TO THE WORKPLACE
June, 2021 / Volume 25, Issue 5
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6
EIB TO FOCUS ON PRIVATE SECTOR GROWTH AND FDI IN ROMANIA
18
ROMANIA’S TRADE DEFICIT STILL WIDENING DESPITE EXPORT REBOUND
23
ROMANIA GETS BEHIND EU’S UNICORN HUB AMBITIONS
24
AT BOSCH, CHANGE AND EVOLUTION ARE OMNIPRESENT ACROSS ALL BUSINESS SEGMENTS
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EDITORIAL 3
• Editorial •
REAL ESTATE
Anda Sebesi • Editor-in-Chief • 6 Office market starts to recover as employees return to the workplace
COVER STORY
Making the most of our cities
A
smart city is a place where traditional networks and services are made more efficient with the use of digital
8 At Bosch, change and evolution are omnipresent across all business segments
MAIN STORY
and telecommunication technologies, for the benefit of its
inhabitants and businesses. It goes beyond the use of information and communication technologies (ICT), into better resource use
12 Smart cities as
and reduced carbon emissions. It means smarter urban transport
foundation to sustainable future
networks, upgraded water supply and waste disposal facilities, and more efficient ways to light and heat buildings. It also means a more interactive and responsive city administration, safer public spaces, and meeting the needs of an ageing population.
ENTREPRENEURSHIP
With the pandemic changing the way societies and cities work, smart city transformation can no longer be seen as a “nice to have”. This is why we decided to dedicate this issue’s main story to this topic. COVID‑19 has resulted in us all experiencing different levels of isolation and a lack of connectedness. As we emerge from the immediate crisis, there is a unique opportunity to improve
24 Romania gets behind EU’s unicorn hub ambitions
26 PNRR set to enhance local startup funding ecosystem
connection by embedding digital infrastructure and smart city initiatives as part of the business‑as‑usual design, development,
CITY
operation, and maintenance of our cities. A recent report published by KPMG says that smart cities are resilient cities and, through the integration of physical and digital environments, we can address the gaps in resilience exposed by COVID‑19. According to Vegacomp Consulting, in June last year there were 594 smart city initiatives in either the project, implementation or completed stage, in 87 large, medium, and small cities throughout the country, compared to only 330 projects in 45 cities recorded in March 2019. But there is plenty of work still to be done for our cit‑ ies to become smarter, healthier, greener, and more sustainable!
34 The future of food: are insects going to be part of our daily menu?
36 The challenge to find Romania’s next Vacaresti Park
38 New in town
EDITOR-IN-CHIEF: Anda Sebesi JOURNALISTS: Aurel Constantin, Mihai Cristea, Romanita Oprea, Oana Vasiliu CONTRIBUTORS: Ovidiu Posirca, Claudiu Vrinceanu COPY EDITOR: Anca Alexe PHOTO EDITOR: Mihai Constantineanu PHOTOS: Dreamstime ART DIRECTOR: Raluca Dumitru PUBLISHER: Bloc-Notes Media Network ADDRESS: 82-98 Calea Grivitei, 1st floor, Hotspot Workhub, District 1, Bucharest, Romania SALES MANAGERS: Radu Fireteanu, Alexandra Rosca MARKETING & SALES MANAGER: Luiza Luca PRODUCTION: Dan Mitroi DISTRIBUTION: Eugen Musat EXECUTIVE DIRECTOR: George Moise GENERAL MANAGER: Catalin Alistari USA MANAGER: Oana Molodoi FOUNDING EDITOR: Bill Avery EMAILS: editorial@business-review.eu, sales@business-review.eu, events@business-review.eu SUBSCRIPTIONS on Manpres Distribution Business Review is a member of Fwei
Publicație auditată pe perioada Apr 2015 - Mar 2016
ISSN NO. 1453-729X
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4 NEWS
WHO’S NEWS BR welcomes information for Who’s News. Submissions may be edited for length and clarity. Get in touch at mihai.cristea@business-review.eu
Companies in Romania include digital archivation in sustainability plans By Mihai Cristea recycling rate seen in Germany, at 67.3 percent. EAD studies show that a regular employee working in an office generates between 54 and 68 kilograms of recoverable white paper
Irina Firstova has taken on the role of Country HR Manager at Coca-Cola HBC Romania, previously having served as Country HR Excellence Manager in Russia at the same company. Irina joined the Coca-Cola HBC team in 2004 in Novosibirsk, Siberia as a Sales Coordinator and started her career as an HR professional in 2005. During her 17-year tenure in the company, she gained experience in several roles, including Training Manager, Talent Development Manager, HR Manager for Support Office, and HR Business Partner for Sales and Supply Chain teams.
Claudio Cisullo was elected as Chairman of the Board of Directors at One United Properties. He has been a shareholder and member of the company’s Board of Directors since 2020 and recently became the third-largest shareholder of the company. Cisullo is also the founder and Chairman of CC Trust Group AG, founder and Executive Chairman of Chain IQ Group AG, Chairman of ACC One Holding AG, member of the Board of Directors of Ringier AG, and member of the Board of the Swiss Entrepreneurs Foundation. page 5
waste annually. Paper con‑ sumption has increased by 400 percent in the last 40 years and this has led to intensive logging, with deforestation in some countries. About 35 per‑ cent of trees cut down across the planet are used for paper
Bruno Amaro, CEO of EAD Digital Romania
production. In this context, the number of companies using recycling services increased
According to data from EAD,
last year ranked 26th out of 27
the largest Portuguese player
in the EU in terms of waste recy‑
on the digital archiving market,
cling rates.
globally by 17 percent last year. Secure recycling of physical archives allows companies to protect themselves in situa‑
which also operates in Roma‑
According to data released
nia, multinational companies
last year by the European Com‑
tions of potential risk that may
concerned with sustainability
mission, in Romania’s municipal
arise in the process of dispos‑
and environmental protection
waste recycling rate was 11.1
ing of confidential documents,
are increasingly interested
percent of total waste in 2018,
as well as to ensure that their
not only in digital archiving
down from 13.2 percent in 2013.
documentation is destroyed
services, but also in document
Romania is far from reaching
in accordance with new data
recycling services. This trend
the European average of 47.2
protection rules and local
is visibly growing, as Romania
percent, with the highest waste
legislation.
Arctic’s Ulmi factory reaches 1 million washing machines milestone By Mihai Cristea
Arctic, the leader of the Roma‑
and one of the most modern pro‑
nian home appliance market and
duction facilities in Europe.
a major contributor to the local
Opened in 2019, following
economy, marked the milestone
a EUR 153 million investment,
of one million washing machines
the production facility in Ulmi
manufactured at its Ulmi plant
integrates cutting-edge ma‑
in Dambovita county, the first
chine learning technologies and
Industry 4.0 factory in Romania
automated processes that enable
Arctic's Ulmi plant is the first Industry 4.0 factory in Romania
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NEWS 5
SofMedica expands to Hungary By Mihai Cristea As part of its strategic objec‑
Otilia Bordei joined Avison Young as Head of Office Agency. She will be responsible for developing and consolidating the department’s position on the market, managing the agency’s relationship with office building developers, and providing consultancy for tenants. Before joining the Avison Young Romania team, Otilia Bordei worked in the Leasing & Asset team of Skanska Romania for five years.
tive of growing its business in Europe, SofMedica has announced an expansion of its territory footprint in Hun‑ gary, adding this promising CEE market to its presence in Romania, Greece, Bulgaria, and Cyprus. The scope is to consolidate its position as a leading provider of innovative technologies designed to fight the leading causes of mortality worldwide, namely cancer and cardiovascular disease (CVD). After the proven success
SofMedica is planning a EUR 5 million investment in the Hungarian healthcare market
in implementing its business
professionals who expressed the
an installed base of approxi‑
model in the other four EU
need for access to innovative
mately 6,000 systems. The
countries where it has been
medical technologies such as ro‑
dynamic evolution of robotic
present since 1994, SofMedica
botic surgery, bronchoscopy, on‑
surgery in this region is dem‑
is planning a EUR 5 million
cology diagnostics, and ICU and
onstrated by a sustained, high
investment in the Hungarian
OR monitoring. The expansion
rate of utilisation in Greece, as
healthcare market, providing
on the Hungarian market comes
well as the recent implementa‑
public and private hospitals
along with an ambitious recruit‑
tion of successful programmes
with innovative technology,
ment plan seeking biomedical
in Bulgaria. In Hungary too,
including its flagship product,
engineers and experienced clini‑
patients will very soon benefit
the da Vinci robotic-assisted
cal sales professionals to join its
from the advantages of ro‑
surgical system.
dynamic team.
botic surgery, such as reduced
The decision of entering the
In 2020, over 1.2 million da
hospitalisation times, fewer
Hungarian market is a result
Vinci procedures were per‑
postoperative complications,
of discussions with healthcare
formed around the world using
and higher quality of life.
Claudiu Fuiorea is the new CFO of Macromex. With a career of over 20 years, Claudiu Fuiorea has held important positions both nationally and internationally, in companies such as Mondelez International (Kraft Foods), Ursus Breweries Romania, and Asahi Group (formerly SAB Miller), where until recently he held the role of Vice President of Finance.
employees to work side by side with robots, leading to a 30 percent increase in productivity. Over 200 robots were part of the production process of the one million Arctic washing machines. The 700,000-sqm Ulmi pro‑ duction hub boasts automated material handling and storage systems that allow parts to be transported from the warehouse to the assembly line with selfdriving vehicles. Over 70 percent of production operations are based on self-determined and self-managed systems.
Adina Trandaf is the new Managing Director of Oxygen, tasked with managing the company’s operational activities, implementing its strategic vision, and achieving its business objectives, while coordinating a team of nearly 60 communication professionals. Adina Trandaf has been with Oxygen for almost ten years, the last six of which were in the Client Service Director role.
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6 REAL ESTATE
Office market starts to recover as employees return to the workplace The office market is showing signs of recovery from the pandemic period, which forced many employees to work from home. Transaction volumes increased in the first quarter of the year, including the share of pre-lease contracts. New office buildings were also completed in the Politehnica area of Bucharest. The recovery is expected to continue, since the gradual lifting of restrictions started in May and will carry on over the summer. By Aurel Constantin of the Campus 6.2 building, part of the larger Campus 6 project developed by Skanska in the Politehnica area, and of the Millo Of‑ fices, developed by Forte Partners in central Bucharest, with the two buildings adding up to a total area of almost 30,000 sqm. By comparison, in the first quarter of 2020, Bucharest had deliveries of new office spaces totalling 79,000 square meters. However, this year's deliveries will be above 2020’s - when 155,000 sqm were completed - as another approximately 220,000 sqm of new modern office space are due for delivery by the end of this year. The commercial leasing stock of office buildings in Bucharest totals about 2.98 mil‑ lion square meters, with other buildings with an area of approximately 150,000 sqm being occupied by the owners, while projects with a total area of 370,000 sqm are currently under construction and scheduled for delivery The first quarter of 2021 saw the delivery of the Campus 6.2 building, part of the larger Campus 6 project
T
between 2021-2023. In this context, the contractual office space vacancy rate is 13.5 percent, with a significant
he volume of leasing transactions on
their office locations by as long as possible –
difference between class A (10.7 percent)
the Bucharest office market reached
which led to an 40 percent annual decrease
and class B (22.1 percent) office buildings.
48,000 sqm in the first quarter of
of the transactional volume – we can now see
Although we are witnessing the gradual re‑
2021, a 9 percent decline from the similar
the first signs of stability, with a 29 percent
turn of employees to offices, the use of space
period of the previous year, when the CO‑
share of renewal contracts compared to
currently remains at a relatively low level of
VID-19 pandemic was still in its early stages in
an annual average of 45 percent in 2020.
about 40-50 percent, given that most compa‑
Europe, according to research by real estate
Moreover, the share of pre-lease contracts
nies are continuing their work from home or
consulting company Cushman & Wakefield
grew from 20 to 46 percent, which shows
hybrid schemes.
Echinox.
that some companies have outlined their
“We believe that the first three months of
However, compared to the second half of
post-pandemic working policies and are now
this year have brought positive signs, as we’re
2020, when the market witnessed low levels
in a better position to make decisions for the
noticing a significant number of pre-lease
of leasing transactions due to companies
medium and long term.
transactions of office spaces under construc‑
postponing important decisions regarding
The first quarter of 2021 saw the delivery
tion, after a 2020 that was generally marked
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COVER REALSTORY ESTATE14 7
by delayed decisions regarding the occupancy
a new maturity phase, with diverse projects
diversify into this seemingly pandemic-proof
of new office spaces. We’re also seeing a sig‑
developed by both international developers
sector (28 percent) and away from the more
nificant decline in COVID-19 cases and a posi‑
and local players, with high quality standards
challenged retail and hospitality sectors (15
tive evolution of the vaccination campaign,
for buildings and care for the environment, as
percent).
two key elements that will favour many
well as stable tenants with well-defined plans
employees’ return to the office, as they will
and increasingly more sophisticated require‑
market, where we had a volume of EUR 40
feel safer at work, an essential factor in the
ments,” said Rodica Tarcavu, Industrial Agen‑
million going towards the office segment
return to a certain normality,” said Madalina
cy Partner at Cushman & Wakefield Echinox.
through Bucharest Financial Plaza and a
Cojocaru, Office Agency Partner at Cushman
Currently, developers are building new
“This is well applicable to the Romanian
2,500 sqm office building in Brasov closed
spaces with a total area of over 450,000
deals, representing 50 percent of the total Q1
square metres. Bucharest remains the most
2021 transaction volume. A rather unex‑
ects under construction are One Cotroceni
active market, accounting for about 55
pected share of 25 percent went to the hotel
Park, J8 Office Park, Globalworth Square, U
percent of the spaces under development.
segment through Ramada Majestic and the
Center, Miro Offices, Tiriac Tower, Dacia One,
Cluj-Napoca, Timisoara, and Brasov,
Equilibrium II, @Expo or Sema London &
three of the most important
Oslo, with developers already having signed
regional logistics markets,
pre-lease contracts for about 60 percent of
along with Craiova,
the spaces.
where a new Profi
& Wakefield Echinox. Some of the most important office proj‑
Opera, Central, and Venezia portfo‑ lios, marking two new investor entries on the local market and bringing back interest in the hotel
logistics centre will
market and the soon
INDUSTRIAL AND LOGISTICS
be built, are also
expected recovery
The local industrial and logistics market start‑
major markets.
of this segment The remaining
double compared to the similar period of the
INVESTMENT MARKET STILL RECOVERING
previous year, according to an analysis by
The first quarter of
Cushman & Wakefield Echinox.
2021 ended with invest‑
in Romania.
ed 2021 on a positive trend, with the transac‑ tional volume for the first three months of the year reaching almost 200,000 square metres,
Contract renewals represented only 16 per‑
ment transactions totalling
share went nearly equally to retail and industrial & logistics assets through the Lidl portfolio and Solo Iasi transactions. About 30 percent of
cent of the transactional volume, so demand
EUR 85 million in Romania, a
was primarily driven by new contracts and
42 percent decrease compared to the first
relocation projects. More than 40 percent of
three months of 2020, when the country had
figure for the investor pool in Romania,” ex‑
transactions were pre-leased, so the mar‑
not yet been significantly impacted by the
plains Anca Merdescu, Associate Director for
ket will continue to grow at a steady pace.
pandemic, according to Colliers’s latest “CEE
Investment Services at Colliers.
Bucharest attracted almost 60 percent of the
Investment Scene Q1 2021” report. Despite
Furthermore, Colliers consultants have
transactional volume, but significant activity
the slow start, investor sentiment suggests
noticed increased interest in real estate from
was also recorded in Timisoara, Pitesti and
that there will be a strong pick-up in activ‑
various investors, even from some who were
Brasov.
ity in the second half of the year, subject to
not necessarily specialised, but looking to
progress in fighting the pandemic and open
diversify their asset classes. Key criteria for
travel policies.
such interests are definitely long-term leases
Deliveries of new spaces in the first quar‑ ter of 2021 were limited. The most important development was the 10,000 sqm extension
Overall, Central and Eastern Europe (CEE)
the investors were domestic, a still balanced
of more than 10 years and a financially solid
of the Decathlon distribution centre inside
investment flows were down by almost 48
tenant. Such investment opportunities are
the WDP logistics park located at the intersec‑
percent from Q1 2020, at about EUR 2 billion.
highly regarded and have a strong potential to
tion between the Bucharest - Ploiesti highway
Poland remained the regional leader, with
set off yield compression. Bucharest has some
and the Capital ringroad. One of the largest
investment volumes accounting for 65 per‑
of the highest yields in the region for the
transactions of early 2021 was also signed
cent of the overall CEE6 total, followed by the
office sector (7 percent), compared to at most
within the same project, when eMag leased
Czech Republic and Hungary, with shares of
4.25 percent in Prague, 4.7 percent in Warsaw
11,000 sqm.
14 and 11 percent respectively.
or 5.25 percent in Budapest. Going forward,
The office sector was dominant all over
rents will remain relatively stable, according
e-commerce sectors are the most active on
the region in the first quarter of 2021 in terms
to Colliers International, with prime headline
the industrial and logistics market and we
of transactional activity, with a share of 50
still around EUR 18/sqm in the office sector in
are confident that they will be the engine for
percent of the total volume of investments,
Bucharest (and a regional average of EUR 14/
future logistics park developments in Bucha‑
followed by industrial and logistics spaces,
sqm), and between EUR 11-14.5/sqm in other
rest and other cities. This sector is entering
which are up significantly as investors
cities in the country.
“Companies in the retail, distribution, and
8 COVER STORY
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COVER STORY 9
AT BOSCH, CHANGE AND EVOLUTION ARE OMNIPRESENT ACROSS ALL BUSINESS SEGMENTS Bosch Romania managed to get through over the pandemic year with positive results, mitigating the short-term impact of the health crisis. The company’s consolidated sales grew by 3 percent to RON 2.2 billion, while its employee count reached 8,160. Business Review talked to Mihai Boldijar, General Manager of Robert Bosch and Representative of the Bosch Group in Romania, to find out more about what the company did to overcome the crisis. By Aurel Constantin How did business develop for the Bosch Group in Romania in pandemic year 2020? What did the company do in response to the crisis? Despite the pandemic’s short and medium-term effects and the lack of predictability dominating the business environment, the Bosch Group achieved remarkable results in Romania. All our business segments have performed better than expected. Last year in March, when the lockdown began, we managed to rapidly mobilise all of our existing resources and developed several working scenarios designed to secure the continuity of business operations. As a first move, we enforced various preventive and protective measures that helped us safeguard both the physical and mental health of our em‑ ployees and switched to remote working wherever the job descrip‑ tion allowed it. In our manufacturing operations, measures were adapted to the nature of the activity. In terms of extra measures, we installed thermo-scanning gates at both our manufacturing sites and we shifted working schedules to avoid overcrowding. In mid-April, we decided to temporarily ramp down our local production activi‑
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10 COVER STORY
ties and implemented the Kurzarbeit solution as well as the furlough
Goods business sector performed well last year, with the Bosch
scheme – a decision that helped us secure the jobs of all our col‑
Power Tools division registering a double-digit growth on all product
leagues and ensured a smooth and rapid return to business as usual.
segments, and the Home Appliances segment (BSH) continuing
In the second half of 2020 we ramped up production, which helped
the trend of recent years by also achieving double-digit growth in
boost the pace of our manufacturing operations and led to the
2020, for both large and small domestic appliances. Moreover, in the
creation of extra jobs. Today, I am happy to say that as a result of the
Industrial Technology sector, Bosch Rexroth, is a reliable partner for
remarkable efforts made by the entire organisation, the extraordi‑
energy efficiency projects, offering customers smart industrial solu‑
nary commitment and resilience of our more than 8,000 colleagues,
tions such as CytroBox, a compact hydraulic unit that can be easily
and also by virtue of the support and understanding of our business
integrated into connected manufacturing facilities and requires up
partners, we have succeeded in overcoming the immediate effects
to 80 percent less energy than conventional drives. Additionally,
of the pandemic and ended 2020 with RON 2.2 billion (EUR 448
we’re making good progress in digitalizing in-house operations
million) in consolidated sales and RON 6.8 billion (EUR 1.4 billion)
and processes, starting with the HR department and going up to
in total net sales. Moreover, we remained committed to our plans
our Bosch Service Solution division in Timisoara, which is already
and further consolidated our position in Romania by investing over
running multiple programs in the realm of digital transformation,
RON 487 (roughly EUR 100 million) during 2020. This is the type of
offering tailored software solutions using new technologies like
progress that gives us confidence for the current business year.
Robotic Process Automation or artificial intelligence, which increase service quality and delivery efficiency. Needless to say, our factories
What are the main business drivers for Bosch in 2021? How will this year’s expected economic growth help the company? In these turbulent times, everyone is talking about change: in business, politics, soci‑
have been using Industry 4.0 solutions for a while now. We’re very fond of the connected life concept and I am convinced that with the help of AIoT, we are making our own mark on the digitalization megatrend.
ety. For Bosch, change and evolution have always been omnipresent in all business segments. We see pursuing and embracing change as being not just about readjusting and recalibrating our core business, but also about transforming challenges into new busi‑ ness opportunities. In terms of climate change, for instance, our response has been to pursue carbon neutrality, and by the end of 2020, all 400 of our worldwide locations had become carbon neutral. There is
Can you tell us about Bosch Romania’s involvement in local education projects? Bosch is actively involved in many educa‑ tion projects in Romania, and our aim is to support young talents in their career path and attract them into working with us. Our commitment to education is growing constantly and over time, we have managed to create strong liai‑ sons between the company and several prestigious educa‑
still a long road ahead, but we are already harvesting upon our prog‑
tional institutions, both at the higher education and pre-university
ress, while staying true to our beliefs and promises, providing lasting
levels. I would like to emphasise the achievements of last year, when
technological answers to environmental questions. The pandemic?
the Cluj Engineering Centre and the Babes-Bolyai University in Cluj-
Well, we saw molecular diagnostics as a growth area and it paid off.
Napoca launched a new Master’s programme called “High perfor‑
IT and AI? Our answer is industrial AIoT by Bosch. Connectivity,
mance computing and big data analysis,” and our Blaj plant officially
electrification, hydrogen, and alternative fuel-cells are the mega‑
launched the Bosch Academy – a programme conducted in close
trends we’re using to build our medium-long-term business case and
collaboration with the University of Targu Mures, providing students
they are acting as main business drivers for 2021 as well. Embracing
with a wide perspective over the latest trends in the automotive
change is what gives us stability, and as the economy slowly recov‑
industry. Likewise, our plants in Cluj and Blaj have both inaugurated
ers, we will probably see the Bosch business on an upward trend
some inspirational study areas within the campuses of the Technical
once again. We will continue to focus on the megatrends of the mo‑
University in Cluj-Napoca, the “1 Decembrie 1918” University of Alba
ment, and on making the most of everything that comes out way.
Iulia, and the “George Emil Palade” University of Medicine, Phar‑ macy, Sciences and Technology from Targu Mures, while the plant
Which are the most important strategic directions at the Bosch Group level? How is the push towards digitalization being applied in Romania?
in Cluj continues its long-term collaboration with the Technical Uni‑
We are making great strides here, but I find it relevant to highlight
programmes, the dual school system continues to be greatly suc‑
the fact that digitalization goes hand in hand with sustainability. In
cessful. Since 2013, about 500 high school apprentices have received
2020, for example, Bosch sold some four million connected home
market-oriented vocational education as part of the dual school
products worldwide – household appliances, power tools, heating
programme we are conducting at our plants in Cluj and Blaj. On the
systems, and smart home devices. In Romania, too, the Consumer
other hand, we’re looking closely into sciences like economics and
versity of Cluj-Napoca by equipping an Industry 4.0 laboratory and training qualified staff for the future of work. As for pre-university
www.business-review.eu Business Review | June 2021
related fields, and in this context our division in Timisoara, Bosch
COVER STORY 11
Service Solutions, recently launched the Controlling Academy, an
the company and its products more sustainable and environmentally-friendly?
intensive paid programme for Master’s degree students in the fields
Bosch is pressing ahead with its climate action targets as planned,
of finance, management, accounting, and computer science.
and I’ve already mentioned the fact that the company’s more than 400 locations worldwide have achieved carbon neutrality. This
Before the pandemic, Romania was dealing with a workforce shortage. What’s the situation like today after so many things have changed?
was a major milestone for us and it turned Bosch into the first
Labour shortage continues to be one of Romania’s greatest prob‑
also plan to cut 15 percent of CO2 emissions along our entire value
lems, but the context is wider than just the overall lack of personnel.
chain, from suppliers to customers, by 2030. Compared to the level
We are talking about specialised and qualified workforce, profes‑
recorded in 2018, this goal represents a decrease of 67 million metric
sionals with skills which are suitable for different industry sectors.
tonnes of carbon dioxide emissions. We are pioneers in sustainable
Regardless of the current situation and the fact that some companies
manufacturing in Romania, too: we have already implemented a
have found themselves in the position of reducing staff, we’re still
series of projects focusing on energy efficiency and energy con‑
seeing many young people leaving the country to pursue opportuni‑
sumption monitoring at our plants in Cluj and Blaj, replaced all
global industrial company whose locations no longer have a carbon footprint, and that includes our manufacturing sites in Romania. We
ties abroad. We’re facing an exodus which I believe can‑ not be stopped unless large organisations and the public sector work together. What Bosch and other multina‑ tional companies are doing nowadays in the educational sphere, both in the university environment as well as in the pre-university cycles, has much to do with keeping talents in Romania and offering them decent jobs, with real opportunities for growth and development. We’ve managed to find a solution for the closing of vocational schools – one of the biggest obstacles to finding special‑ ised workforce – through the dual school programme I mentioned earlier, and we’ve made significant invest‑ ments to expand the project in both our Cluj and Blaj plants. Nevertheless, it is vital for authorities to get more involved.
lighting systems with LED technology, and we are now purchasing electricity from 100 percent renewable sources. Furthermore, the
How do you keep your employees motivated? Do you offer them specific benefit packages? How are all these benefits received?
manufacturing unit in Blaj has recently started to produce its own
In terms of employee engagement, I see trust and transparent com‑
generate an amount of green energy that’s equivalent to the electric‑
munication as the most important incentives. The past year has
ity consumption of 50 private homes.
green energy by installing several photovoltaic panels that actually
proven that trust is something that works better when it is offered, not gained, and that the best way of successfully navigating through turbulent times is active communication. We trust our colleagues
Where do you see Bosch in 5 years? Which business sectors do you believe will experience major changes in the coming period?
to work in the best interest of the organisation, and we rely on their
We see Bosch bringing something unique to the table, as we are
judgement and decisions. On the emotional side, we truly want
already able to combine broad domain knowledge with expertise in
them to feel safe, motivated, and appreciated at their workplace, so
IoT and AI, and the result is AIoT. Connectivity provides knowledge
we are constantly working to improve the benefits package we offer,
about the way things are used, and if we use artificial intelligence
adapting it to their current needs and requirements. Of course, their
methods to evaluate this knowledge, we can develop new features
health and safety are top priorities and we’ve been very focused on
and services, which in turn multiply the benefits our products offer.
these lately, from offering private healthcare subscriptions to all our
This enables us to close the gap in the value creation cycle between
employees even (before the pandemic) to the more recent opening
our engineers’ and our customers’ daily lives. One way to look at
of our own Bosch Medical Centre in Blaj and a COVID-19 vaccination
it is that this daily life becomes a productive part of our develop‑
centre in our Cluj plant, where all our colleagues working in the Cluj
ment work. For example, in the future we will be able to use cloud
area were offered the vaccine, as part of a collaboration with local
algorithms to dynamically estimate an e-biker’s arrival time based
authorities.
on empirical values rather than just on a static map. Using field data to develop additional customer benefits will become a core compe‑
Concern for the environment is still on the rise. What actions has Bosch taken in this regard and how do you intend to make
tence for Bosch, and our stated aim is making Bosch a leading AIoT company.
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12 MAIN STORY
Smart cities as foundation to sustainable future With a growing urban population, cities in Romania have one way to cope with this big challenge: by becoming smarter and adopting a sustainable development model. In light of the pandemic, smart city transformation can no longer be seen as a “nice to have”; it is a must for cities of all sizes. By Anda Sebesi
I
n recent years, the smart city concept has entered on the agenda
says Eduard Dumitrascu, president of the Romanian Smart City
of an increasing number of countries worldwide, including
Association.
Romania. Although a clear definition of this concept may still
According to Business Dictionary, a smart city is an urban area
be under debate, one thing is clear: a smart city implies a series of
that creates a sustainable economic development and a high quality
interconnected industries and a joint effort by citizens, central and
of life as a result of great performance in several key sectors like the
local authorities, academia, and private companies. “A smart and
economy, mobility, environment, people, life, and government.
sustainable city is an innovative city that uses data and communica‑
Yet the pandemic has changed the way societies and cities work.
tion technologies, as well as other means to improve the quality of
According to Smart City Transformation in a post-COVID world
life, the efficiency of urban operations and services, and competi‑
study conducted by KPMG, smart city transformation can no longer
tiveness, in order to meet the needs of present and future genera‑
be seen as a “nice to have”. COVID‑19 has resulted in us all experi‑
tions from an economic, social, and environmental perspective,”
encing different levels of isolation and a lack of connectedness. As
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MAIN STORY 13
we emerge from the immediate crisis, there is a unique opportunity
This poses a challenge for EU cohesion, since the inability to close
to improve connection by embedding digital infrastructure and
investment gaps primarily affects municipalities in less economi‑
smart city initiatives as part of the business‑as‑usual design, devel‑
cally developed regions. “For the EIB, investment in smart cities
opment, operation, and maintenance of our cities.
and regions is a way to respond efficiently to its social and territorial
“Smart cities are resilient cities and, through the integration of
cohesion mandate by supporting the upgrade of local economies in a
physical and digital environments, we can address the gaps in resil‑
quickly evolving digital world. Cities and regions are key partners for
ience exposed by COVID‑19. By harnessing data and digital technolo‑
the EIB. The EU Bank supports projects to make cities more sustain‑
gies, we can re‑engineer flourishing, inclusive cities which are able
able (energy transition, climate adaptation, and efficient mobility),
to adapt in the face of change,” says the report.
inclusive (housing, health care, and integration of migrants), and
The same report notes that importantly, a successful re‑imagina‑
competitive (education, skills development, and digital transition).
tion of cities requires adopting a human‑centred design approach
With its advisory, the EIB can help cities with their investment plan‑
that focuses on tapping into the collective intelligence of communi‑
ning and coordination, which is often a weak spot for municipalities
ties in order to understand the human
across Europe,” the EIB representative
experience from the diverse perspec‑
adds.
tives of the people who live, work,
The city of Oradea is an excellent
learn, and play in cities every day. This
example on making the best use of
approach holds even greater value at a
the EIB advisory and lending support,
time when we are seeing an increased
in combination with EU funds. Since
focus on the role of local neighbour‑
2007, Oradea and EIB have signed three
hoods in strengthening community
framework loans to support urban
resilience.
regeneration and geothermal schemes,
Municipal infrastructure gaps
as well as the acquisition of public
remain prevalent in the European
transport rolling stock. “We are now
Union, especially for digitalization and
working on a fourth loan to support
climate change, particularly in Central
Oradea in achieving its ambitions of be‑
and Eastern Europe. The EIB Munici‑
coming a green and digital Future City:
pality Survey 2020 highlights that even
EIB-EU JASPERS advisory has helped
though municipalities have focused
prepare the zero-emission buses pur‑
on developing digital, urban trans‑
chase scheme, including the EU grant
port, and social infrastructures, their
application. The EIB's involvement will
infrastructure investments remain
accelerate EU funds absorption and
insufficient. Other key factors are the length of regulatory process,
improve the promoter's financial profile by diversifying its funding
regulatory uncertainty and lack of technical capacity to assess criti‑
base, increasing its debt maturity structure, and lowering its average
cal aspects of infrastructure, such as affordable housing or electric
cost of funding,” Zanin concludes.
charging stations for vehicles. “The first wave of the coronavirus pandemic reinforced the
COMMUNITY INVOLVEMENT CRUCIAL FOR SMART CITIES
demand for more digital investment while rekindling the need for
According to Victor Iancu, advisory director at KPMG Romania, a
social infrastructure. How municipalities address green and digital
smart city cannot be imagined without actively involving the com‑
challenges affects their outlook on climate change and is also related
munity, its citizens. The operating model of a smart city combines
to local corporate innovation in these areas,” says Lara Tassan Zanin,
technology with citizen interaction, the latter being analysed and
head of the EIB Group Representation in Romania.
understood in advance, down to the smallest detail.
According to Zanin, municipal digital sophistication (such as
“For example, the way a technology company carefully and sys‑
providing online public services) and green administrative capacity
tematically studies the types of potential customers on the market,
(such as adherence to green budgeting) are associated with greater
their needs, aspirations, and behaviours, to ensure the widest pos‑
confidence for municipalities to assess the risks of the transition
sible adoption of the products and services they create (and achieve
towards a low-carbon emission economy. “Municipalities that have
commercial success), is similar to how cities must position them‑
jointly developed these attributes are also less pessimistic about the
selves when planning and creating smart infrastructures for their
physical risks posed by climate change. The share of firms innovat‑
citizens,” Iancu suggests. He adds that in any given project, putting
ing and adopting technologies in digital and green areas rises with
people first ensures that meeting the real needs of the community
the share of municipalities that are digitally sophisticated and have
remains a priority, without falling prey to the temptation to come up
developed green administrative capacities,” she says.
with generic, mass solutions. “This approach not only sets out very
In terms of funding, municipalities are less able to close invest‑ ment gaps if they are more reliant on capital transfers or grants.
clearly the ‘why’ and ‘who’ the facilities of a smart city address, but citizens also become an integral part of the solution, get ownership
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14 MAIN STORY
in the process, and gain trust. All of these ensure the right targeting
from retail to office, hotels or conference centres – a mix designed
of smart solutions, leading to the success of smart city investments,”
to deliver wellbeing and make people’s lives easier,” says Raluca
Iancu argues.
Munteanu, business development manager at Iulius.
He also suggests that the above aspects require a mindset shift
For example, the developer’s premium office spaces are inte‑
in the way local administrations relate to their communities, to the
grated within retail and entertainment concepts with a multitude
citizens they serve. This new paradigm means looking at citizens in
of shops, services, medical offices, food courts, and even schools
a similar way to how companies look at their customers and asking:
and kindergartens. “All this is designed to bring people together and
who are they (beyond demographics), what are their specific prob‑
make the buildings work for the people, not vice versa. However,
lems, what experiences do they seek,
we believe that the highlight of all our
what motivates them, how do they
projects are our parks and gardens,
choose what they choose, what exactly
where local communities now meet
inspires and supports their loyalty?
and spend time together. I think you
The answers to these types of ques‑
could even say it’s one of our trade‑
tions then turn into design criteria that
marks,” Munteanu says, pointing out
contribute to the efficient and relevant
that the company’s care for the envi‑
creation of strategies, plans, and smart
ronment has been officially acknowl‑
projects.
edged, as all 13 of its office buildings in
“Administrators of cities or regions
the Iasi, Timisoara, and Cluj-Napoca
must overcome the specific mentality
business districts (part of the United
of monopoly-type organisations and
Business Center concept) are either
think strategically about the unprec‑
LEED Platinum or Gold certified.
edented socio-economic changes that
“We continue firmly on the path of
uncover a new changing factor, one rather specific to the private
green developments with Palas Campus, our new mixed-use project
sector: competition. By gradually becoming growth poles (with
under construction in Iasi. It recently obtained the first green credit
their own economic ecosystems), cities and regions are beginning to
in Romania, in the amount of EUR 72 million from the IFC, a divi‑
compete with each other for investment and for retaining or attract‑
sion of the World Bank. This means that Palas Campus will be EDGE
ing talent and qualified human resources. This is a reality that we
certified (Excellence in Design for Greater Efficiencies) and it is also
have been seeing in many developed countries, and it has started to
pending a LEED certification,” Munteanu adds.
appear in Romania as well,” the KPMG representative adds. In countries with a long tradition
She also notes that the value sus‑ tainability adds to a project is obvious in many ways. “Green buildings yield
in the field, city administrators have
significant maintenance and opera‑
changed their approach and are now
tional cost savings because they spend
co-creating smart communities with
10 percent less energy and 20 percent
their citizens. There, strategic and
less water than traditional build‑
development agendas include syner‑
ings. Moreover, they carry a 7 percent
gies between technological and human
increase in asset value over traditional
coordinates (“citizen centricity”), an
buildings.”
essential aspect for encouraging insti‑ tutional and social development, along with physical and economic urban
MOBILITY SOLUTIONS AT THE CORE OF SMART CITIES
infrastructure. “Today, increasingly smart cities stand out and are
A smart city also implies the use of green transportation and mobil‑
differentiated by the experiences they offer to citizens,” Iancu notes.
ity solutions that are harmless for the envrionment, whether we’re talking about public transportation or personal vehicles. One good
BUILDING COMMUNITIES: A KEY TO SMART CITIES
piece of news for public transportation comes from ATP Trucks
Building communities around large real estate projects is one of
Automobile, the Romanian transportation vehicle manufacturer
the biggest achievements sought by developers as such projects go
which announced in April the launch of its electric bus prototype
beyond their basic functionalities and offer a real customer experi‑
called UpCity. It has an autonomy of 200 kilometres which can be
ence. “Our mission is to create genuine urban regeneration projects
extended up to 360 kilometres, it needs 30 minutes for fast charging
and developments that go beyond the limits of mere shopping
and up to 3 hours for regular charging, and it can be adapted to the
centres or office buildings. We like to create spaces and places where
local needs of any city. German manufacturer ZF Friedrichshafen
communities can be nurtured and destinations that can trigger
AG and DANA GK Drive System are among the car parts suppliers for
growth across the region. Our projects combine a set of various uses,
ATP Trucks Automobile. “The innovation strategy that we launched
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MAIN STORY 15
with the production of the first ATP Trucks products has consolidat‑
Bruxelles, Paris, Lisbon, London and Madrid – to be made using
ed our position on the Romanian market. We are looking to identify
electric cars by 2025. As for Romania, in March 2018, Bucharest be‑
partners in Romania whose products could be integrated with our
came the first Central and Eastern European city to get Uber Green,
mobility systems,” says Mircea Cirt, the president of ATP Group.
a ridesharing service with fully electric cars. According to Automar‑
In recent years, large auto manufacturers have directed efforts towards transforming their products into environmental-friendly
ket.ro, over 225,000 passengers in Romania have travelled with Uber Green and covered over 3 million kilometres by September 2020.
brands. For example, the Renault brand has moved into a new era and launched its own “Nouvelle Vague”, bringing modernity to the
EV INFRASTRUCTURE IS VITAL
European automotive sector by turning into a Tech, Service, and
Though Romanians are increasingly interested in buying an electric
Clean Energy brand. This move is closely connected to the fact that
car, the charging infrastructure needs significant further develop‑
for more than 10 years, Groupe Renault has garnered expertise in
ment in order to keep up with the demand for such cars. At the
electric vehicles which translates into more dynamic and efficient
beginning of this year, Telekom Romania was the first telecom op‑
hybrid motors. “First, it is about a tech brand
erator to announce that it would install EV charging stations in several cities
with an ecosystem called ‘Software
across Romania, in response to the
République’ that will allow Renault to
new auto trends and to the increasing
build European know-how and defend
number of EVs on the local market.
its sovereignty in key technologies.
“Smart City Solutions is a strategic
Second, it is a service brand that offers
business development direction for the
the best connectivity and high-tech
Deutsche Telekom Group, with Electric
services embedded into our vehicles.
Vehicle Charging Solutions playing a
Renault will be the first carmaker to
very important role in the portfolio.
bring Google services to mass-market
Electric Vehicle Charging is an integral
cars. Third, it is a Clean Energy brand
part of the growing e-mobility value
becoming a leader of the energy
chain, and it can further enhance local
transition through its leadership on
and regional mobility concepts. To
the electric market, with market-ready
enable interregional mobility without
end-to-end hydrogen solutions for
‘range anxiety’, it is essential to devel‑
LCVs to reach the greenest mix in the
op not only a local but also a regional
European market,” says Cecilia Tudor,
and nationwide EVC network,” says
managing director at Renault South
Alexandru Nen, IoT solutions and
Eastern Europe. According to her,
smart city architect at Telekom Roma‑
Renault provides the full Electric experience with the E-Tech vehicle
nia. He adds that implementing a convenient EVC infrastructure will
range, services, and aftersales. This means that the entire Renault
further expand the use of electric vehicles in a city. This, in turn,
Network across the country will allow customers to charge their
helps a city reduce its carbon footprint while helping policymakers
E-Tech vehicles, whether they are fully electric or hybrids. “From
and authorities pursue environmental protection goals with trace‑
the customer’s perspective, we can firmly say that the total cost of
able information. “Electric Vehicle charging from Telekom offers
ownership will be lower than it would be for an ICE (Internal Com‑
a smart and comprehensive solution for all cities and regions that
bustion Engine) vehicle,” Tudor says.
would like to set up and operate a charging infrastructure. Telekom takes over the planning and construction of the highly modern
CAR SHARING GOES GREEN
charging infrastructure systems as well as the associated electric in‑
The car sharing market is growing rapidly, with operators demand‑
stallation and maintenance. A software for the operation of charging
ing an affordable electric city car. According to Tudor of Renault,
stations and end-user management is included in the services,” he
there are currently around 15,000 electric car sharing vehicles on
says. He adds that the company brings expertise from the imple‑
the road in Europe, with a projection of 150,000 cars in the segment
mentation of many EV Charging projects across the entire Deutsche
by 2025, a market multiplied by 10 in 5 years. “Renault understands
Telekom footprint, from small communities to major cities, using
this well, as nearly 10,000 of the brand’s electric vehicles are avail‑
various technologies on the European Market based on best fit for
able for car sharing every day in around twenty European cities. In
specific use cases. Telekom Romania has several smart city proj‑
Romania, we already have EV fleets in the Uber and Spark car shar‑
ects either completed or currently in development, such as energy
ing platforms,” Tudor notes.
efficiency (Smart Lighting, Solar Power Energy), public safety and
Speaking of which, Automarket.ro writes that Uber announced
data collection (Smart Video Surveillance), urban mobility (Smart
a partnership with Renault and Nissan through which it aims for 50
Parking), waste management, urban area revitalisation (Smart Public
percent of its trips in seven European cities – Amsterdam, Berlin,
Furniture - Benches, Trees), and smart public administration.
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16 MAIN STORY
Sustainable architecture makes real estate more nature-friendly Antoniu Panait, Managing Director at Vastint, the real estate development company whose buildings are all LEED Platinum certified, talks about the vital role of green buildings inside a smart city ecosystem. By Anda Sebesi What role do green and smart buildings play in unleashing the full potential of a smart city?
floor height, great design of
A “smart” city is defined as a
waste are an important part of
city that collects relevant data
our projects and we’ve truly
and strives to use modern
added value to this concept
technology to streamline traf‑
through an internal campaign
fic, encourage public transpor‑
to save and reuse water.
tation, reduce pollution and
Furthermore, installing water
energy consumption, and seeks
purification systems that en‑
to improve citizens' relation‑
able water recycling and allow
ship with the authorities, their
us to make use of alternative
living conditions, as well as
sources of water (e.g. rainwa‑
health and educational sys‑
ter) will not only preserve this
tems. In short, a smart city uses
vital natural resource, but it
technology to improve the lives
will also protect clean water
common areas, and our great care for outdoor spaces. Our actions to reduce water
of its inhabitants. With today’s rising concerns for the environment,
sources for the future. Increased efficiency, especially in terms of
it’s only natural for green buildings to continue to grow in popular‑
energy, through the equipment we use at both Timpuri Noi Square
ity. Whether we are talking about residential structures or corporate
and Business Garden Bucharest, is another feature of our projects
facilities, the new generation of architects and developers are finding
that we are very proud of, and it also generates lower maintenance
ways to contribute to the preservation of our ecosystem while reduc‑
costs and reduces overall operational costs. Sustainable architecture
ing carbon footprints. The development of green buildings must be
is not only more energy-efficient and healthier for its inhabitants,
synchronised with that of other elements that make up a smart city,
but it is also environmentally-friendly. By reducing our reliance on
so that the whole ecosystem grows in size and value, having a direct
non-renewable resources such as coal and oil, green architecture can
impact on the people living there, increasing their quality of life.
actually promote and maintain cleaner surroundings. Just by design‑ ing a project with a long-term investment for our future and for the
How would you describe the concept of green and smart buildings from Vastint’s perspective?
coming generations in mind, we can create a better environment that can be both secure and less intrusive to nature.
Vastint is a real estate developer who aims to build ecosystems that are as green and sustainable as possible, and that is why all of our buildings have obtained LEED Platinum certifications with such high
How important are green and smart buildings in improving the lives, health, and wellbeing of both citizens and employees?
scores.
The buildings are a small part of a whole that has many components,
To define the green building concept for Vastint, we should start
all of which must align so that citizens can benefit from a better
with the most important aspects of our projects. First, I would men‑
living and working environment. It’s a process that needs to be car‑
tion the excellent indoor environment, which definitely helps im‑
ried out step by step, and to which private and state entities must
prove employees’ quality of life and provides support to employers
contribute equally. It is clear that green and smart cities should be
in creating a great office environment, through technical details such
a priority for medium and long-term developments, and that they
as healthy air conditioning and a superior ventilation system that
should deploy new technological solutions that can help us transi‑
provides 100 percent fresh air, combined with our standard 3-metre
tion to a more sustainable future.
www.business-review.eu Business Review | June 2021
INTERVIEW 17
Industry-led vaccination campaign brings Romania closer to normal Sorin Georgescu, the president of the Romanian Slot Organisers’ Association (Romslot), tells Business Review about the gambling sector’s pro-vaccination campaign, the largest social responsibility initiative carried out so far by a Romanian industry. By Anda Sebesi time the incidence of
soundtrack because we wanted these com‑
COVID-19 cases went up,
mercials to stand out through their simplicity.
despite the fact that we
And the reaction from customers, employees,
had no outbreaks in our
and authorities has been extraordinary.
venues and we made big investments to comply
What's the story behind the ad?
with all the rules. It was
We wanted to turn to people from the gam‑
a natural step for us to
bling industry and their stories. The stars
take part in this vaccina‑
of these ads are real people with various
tion campaign. Every
roles, from those working in game rooms to
employee who gets
middle and top management from compa‑
vaccinated becomes an
nies in this sector. They revealed their fears,
ambassador for immuni‑
their experiences, the difficulties they went
sation; they may even
through during the pandemic and their hopes
be able to convince their
for tomorrow, as well as the reasons why they
family, friends, and
got vaccinated.
customers.
We also wanted to show something that many people probably don’t know, namely
What did the investment entail and why did you choose to develop a nationwide campaign ?
the fact that we are one of the biggest em‑ ployers; we have 45,000 employees through‑ out Romania, with various specialisations. They grow up with us, they build careers inside the industry.
The gambling industry was the first to engage in a pro-vaccination campaign among employees. How was this decision made?
We are talking about an unprecedented mo‑
These employees all have families and
bilisation of forces. We knew clearly that we
friends to whom they can pass on these mes‑
had to combine online and offline, digital and
sages. The campaign is all about people. We
The Romanian gambling industry has
classic. The first step of the campaign was
did it for all the workers in the industry, but
reached maturity. In addition to being a
showing employees and customers that we
we also thought about people from other sec‑
major contributor to the state budget, we
were united. All the big companies displayed
tors who were equally affected. To draw the
want to be connected and involved in the
the same message on their doors all over
line, we are glad that we managed to mobilise
life of the local community. We joined forces
Romania: "We’re playing Responsibly, We are
and show solidarity in such a sensitive mo‑
and mobilised an entire industry, the most
getting Vaccinated." The biggest players in
ment.
important players of the Romanian gambling
the industry posted messages on their social
sector, to develop the largest social responsi‑
media accounts every day. We are talking
What is the target of this campaign?
bility campaign you have ever seen.
about accounts with millions of followers
The ultimate goal is to return to normal, to re‑
which promoted the stories and testimonials
sume the industry’s activity. We aim to reach
of our colleagues.
a vaccination rate of over 70 percent among
We have 45,000 employees who have all felt the effects of the pandemic. Most of them are young, their lives have been turned up‑
The TV campaign was the most expensive
our employees this summer. The Romanian
side down, and the biggest problem was that
part, and it was fully funded by the indus‑
state is the ultimate winner, as this industry
they had no motivation to get vaccinated.
try. It is made up of atypical, disruptive ads.
pays daily taxes of almost EUR 2.5 million a
These people saw that the gambling industry
They contain authentic, unscripted messages
day when fully operational, and that money
was the first sector to get suspended every
of our colleagues; we even gave up using a
can be used for Romania’s development.
www.business-review.eu Business Review | June 2021
18 INTERVIEW
EIB to focus on private sector growth and FDI in Romania Christian Kettel Thomsen, European Investment Bank (EIB) Vice President responsible for Romania, talked to Business Review about the sectors the institution supports in Romania, its future plans for our country, and how it fosters sustainable investments with a lasting impact on the local market. By Anda Sebesi What are the main targets of the EIB’s intervention in Romania in terms of sectors? The EIB’s broad engagement in Romania supports investment across a wide range of sectors. One third of our activity in Roma‑ nia ensures that Romanian small business and larger companies can access financing to replace or upgrade their equipment with more energy-efficient one in order to cut bills and emissions, increase production capacity, and invest in people by expanding specialised training. Over the last five years, the EIB has provided nearly EUR 1.5 billion for private sector investments across the country. Within the EIB Group, we are able to sup‑ port targeted SMEs credit lines with com‑ mercial banks and, through the European Investment Fund (EIF), to support innovative equity and venture capital investments as well as provide guarantees to expand private sector lending and back inclusive financing and micro-finance in order to tackle spe‑ cific investment gaps that are holding back
How do you think the Romanian economy has evolved since the EIB started operating in the country back in 1991?
competitiveness of Romanian business. Since
Romanian business and local entrepreneurs.
1991, the EIB has provided more than EUR 15
A recent analysis estimated that financing
billion of financing that has helped transform
provided by the EIF has backed investments
Over the last thirty years, the Romanian
economic opportunities, improve lives, and
that have generated more than 281,000 jobs
society and economy have seen immense and
strengthen essential infrastructure in Roma‑
across Romania, as support went to more
impressive changes, with both new oppor‑
nia. This has included improving road, rail,
than 34,000 local companies.
tunities and ongoing challenges. During this
maritime, and air connections and enhancing
Alongside the assistance provided to the
period, Romanian business has opened up
energy supplies, all essential for the operation
private sector, the EIB also supports signifi‑
to new markets across Europe and the wider
of small business and large companies.
cant large scale infrastructure investment
world, embraced the European Union mem‑
We have helped ensure that private
bership, and welcomed foreign investments
sector partners could invest in people and
improves lives, by upgrading transport infra‑
in all sectors.
operations by providing credit lines with
structure, strengthening agricultural produc‑
local banks and by working with Romanian
tion, improving water networks, expanding
world’s largest international public bank
universities to train skilled researchers, physi‑
clean energy generation, energy efficiency
owned directly by the 27 EU member states,
cians, and engineers for the future. Continued
and distribution, and accelerating urban de‑
has worked with private and public Romanian
support to private sector growth and Foreign
velopment. More recently, the EIB has scaled
partners to support transformational invest‑
Direct Investment are key objectives for the
up its support to tertiary healthcare and
ments that were essential for the growth and
EIB’s engagement in Romania.
higher education infrastructure and will
Over the last three decades, the EIB, the
that boosts private sector development and
www.business-review.eu Business Review | June 2021 May 2016
COVER INTERVIEW STORY 19 14
continue diversifying its portfolio towards
most affected during the pandemic. The crisis
of a new Regional Emergency Hospital in Iasi
these essential sectors, in addition to climate-
response financing schemes allow work‑
– the first state hospital to be built in Romania
friendly investments in the transport, energy,
ing capital expenses including payment of
in 30 years – and in the coming months the
and urban regeneration sectors to contribute
salaries, social security and tax, all without a
EIB expects to finalise support plans for new
to building a more resilient and sustainable
minimum maturity requirement to help miti‑
regional hospitals in Craiova and Cluj. In both
Romanian economy.
gate the economic impact of COVID-19.
education and health, the EIB advisory has been key in the upstream and project prepa‑
What are the EIB Group’s investment priorities in Romania?
How does the EIB support sustainable investment in Romania?
ration phases. Our Financial Advisory team
Last year the EIB and the EIF backed new in‑
As the Climate Bank of the European Union,
financial information in order to success‑
vestments to improve higher education, wa‑
the EIB is uniquely focused on unlocking new
fully finalise the lending due diligence. For
ter distribution, and energy efficiency across
investment that makes a lasting difference
the emergency hospitals, the EIB advisory
Romania, as well as to strengthen targeted
and supports long-term sustainable growth.
has supported the Feasibility Studies and is
financing for entrepreneurs and companies
A year ago, the EIB launched its first stream‑
now assisting the project team in the Health
in the country, following agreement of more
lined higher education financing scheme
Ministry in implementing the procurement
than EUR 800 million of new financing with
in Romania, which will fa‑
Romanian public and private partners.
cilitate and accelerate largescale new investment to
ment has included streamlined and scaled up
improve teaching, research,
financing to ensure that Romanian companies
and innovation at institu‑
can continue to make investments and that
tions across the country over
they are better prepared to face the business,
the coming years. The first
health, and economic challenges posed by
two loans have been agreed
the pandemic. Reflecting the importance of
with the Technical Univer‑
encouraging private sector investments to
sity of Cluj-Napoca and the
continue despite the unprecedented issues
“Carol Davila” University of
caused by the pandemic last year, some EUR
Medicine and Pharmacy in
600 million of new private sector support was
Bucharest, following a first
agreed between the EIB, the EIF, and leading
ground-breaking loan to
Romanian financial partners.
the Bucharest Politehnica
The EIB and EIF also backed the first ever synthetic securitisation deal in Romania,
Photo: 2021 Technical University of Cluj-Napoca
Crucially, the EIB Group’s recent engage‑
has helped universities prepare the necessary
University in 2019. The new investment will help accelerate
of design and construction works, as well
which will strengthen specialist leasing
strategic development, enhance research
as many other tasks linked to this complex
finance and enable Romanian companies
facilities, and strengthen education to benefit
landmark infrastructure.
to upgrade manufacturing equipment and
students and researchers in the coming years
transport fleets. This enhanced engagement
and make a significant contribution to im‑
to back investment by Romanian companies
proving skills which are essential to enhanc‑
Can you talk about the EIB Group‘s environmental actions?
includes targeted business investment, spe‑
ing economic and social growth in Romania
As EU’s Climate Bank the EIB adopted a de‑
cialist schemes to facilitate leasing by agricul‑
and slowing down the brain drain of young
tailed Climate Bank Roadmap last year, which
ture, manufacturing, and service companies,
Romanians leaving the country and taking
will ensure that all EIB-backed projects, not
and more inclusive access to finance across
their skills with them.
just energy investments, contribute to cutting
Romania in remote regions and by vulnerable communities.
The EIB is also in talks with other higher
carbon emissions and adapt to a changing
education institutions across Romania to
climate. This will increase the EIB’s financing
support their investment plans and al‑
for climate action and environmental sustain‑
to continue their investments is essential
low university investment to benefit from
ability from 30 to 50 percent.
for Romania to overcome the economic,
long-term financing and the EIB’s unique
employment, and social challenges caused
technical experience in education investment
come the first Multilateral Development Bank
by COVID-19. Hundreds of companies across
across Europe. Health services in Romania
to be fully aligned to the Paris Climate Agree‑
Romania are taking advantage of the EUR
are also being strengthened following many
ment and will ensure more ambitious support
190 million of private sector financing pro‑
years of technical engagement with the EIB’s
for investment across Europe and around the
vided by the EIB through CEC Bank, Intesa
specialist teams in Bucharest to ensure that
world to accelerate climate action, cut carbon
Sanpaolo Bank Romania, Unicredit, and
new financing has a lasting impact. The EIB
emissions, and create new jobs in the green
Sogelease to support the sectors that were
recently agreed support for the construction
economy. Since 1991, the EIB has provided
Enabling companies across Romania
The Roadmap will enable the EIB to be‑
www.business-review.eu Business Review | June 2021
20 INTERVIEW
more than EUR 1.2 billion for energy invest‑
and solvency relief to the market. Develop‑
strengthen the competitiveness of Romanian
ment, including gas and power distribution,
ing good, bankable projects on the ground
business. Reducing investment gaps is pos‑
harnessing wind energy, and implementing
is essential though. EIB advisory services,
sible, but continued investment is key.
large scale energy efficiency and energy reha‑
provided under the Advisory Hub, such as
bilitation schemes across Romania.
ELENA or JASPERS, can help get projects off
In Romania, this will mean that the EIB will aim to scale up energy efficiency invest‑
the ground. The EIB’s advisory also supports Roma‑
What should be Romania’s investment priorities? Across Europe and around the world, the
ments by backing larger programmes with
nian authorities in improving the regulatory
pandemic threatens to delay long-term eco‑
local banking partners and using both EIB
environment. The EIB has joined the Green
nomic and social development, creating a lost
and EU financing. The EIB has also submitted
Finance Working Group, led by the Na‑
generation of young people who are missing
a number of policy recommendations to the
tional Bank of Romania and includingvarious
out on key skills and jobs, and causing the
Romanian central bank to boost investment
government bodies and commercial banks,
private sector to delay crucial investments
in both renewable energy and energy effi‑
and had made specific recommendations to
because of business uncertainty or challenges
ciency and to support Romania’s National En‑
unlock and boost green financing across the
in accessing long-term financing.
ergy and Climate Plan. In the coming years,
country. Furthermore, the EIB has advised
Romania has boldly responded to the CO‑
the EIB will play a key role in implement‑
on the improvement of Romania’s energy
VID-19 crisis, with fewer Romanian compa‑
efficiency legislation.
nies having delayed investments compared
Photo: 2021 ROMCOM
to the EU average. Upgrading healthcare
As one of Romania’s longterm financial partners, what do you think the country should do to attract more investments and reduce the economic gaps between itself and more developed countries?
infrastructure, investing in modern higher
The EIB Group survey on
The EIB Group’s business model remains
investment in Romania
demand-driven and we are grateful for the
highlights the impact of
excellent close cooperation with key Roma‑
COVID-19, leading to a sharp
nian ministries and private sector partners
drop in investment and sub‑
to make sure that together, Romania and the
dued activity by both govern‑
EU Bank can harness the opportunities of
education, and committing to further green up the energy mix must be long-term goals for Romania, and hence for our own lending activities in the country, supported by the EIB’s technical experts in Bucharest, one of the EIB’s largest offices worldwide, as well as our Luxembourg headquarters.
ing the new EU Modernisation Fund, both
ment and business. 60 percent of Romanian
the Just Transition Fund and Resilience and
appraising projects and financing schemes
companies we contacted felt that they had
Recovery Facility to the fullest.
with up to 75 percent of eligible project cost,
invested enough over the last three years,
compared to the usual 50 percent limit. And
compared to 80 percent across the EU. For
we’re looking forward to building on techni‑
one third of firms, replacing capacity was a
What are the EIB Group’s future plans in Romania?
cal discussions with Romanian authorities on
key priority, followed by another third want‑
The EIB and EIF have a strong and diverse
how to better leverage the new EU resources
ing to expand capacity. Only 37 percent of
pipeline of new investments in Romania,
made available through the Just Transition
companies were investing in measures to cut
with a number of innovative and exciting
Mechanism in order to help those regions in
energy use and reduce emissions. 72 percent
projects in healthcare, education, microfi‑
Romania which are more reliant on carbon-
stated that the shortage of skilled staff was
nance, and private sector expected in the
intensive industries to reconvert and plan
holding back investment.
coming months. We also expect to confirm
out a fair transition to a low-carbon economy.
Based on these and earlier findings,
EIB support for new schemes to improve
Finally, the EIB and EIF, building on the suc‑
the EIB is working with Romanian bank‑
road safety across the country, long-term
cess of the SME Initiative, are working with
ing partners and universities to unlock new
financing to expand and update regional
the Romanian government and commercial
investment to expand industrial capacity,
water infrastructure, following support last
banks to set up financial instruments that
increased vocational and technical training,
year for water schemes in Cluj-Salaj, and new
leverage EU resources from the Resilience
and provide targeted financing to help and
initiatives to support business financing and
and Recovery Plan in order to boost green
encourage businesses to invest in energy
municipal investment. These investments
and digital investments by small, medium,
efficiency. We are also helping to strengthen
will benefit citizens and businesses across
and large enterprises in Romania. The
overall investment in innovation, research
Romania and strengthen skills and opportu‑
financial instruments will also offer equity
and development, and digitalization to
nities for many years to come.
www.business-review.eu Business Review | June 2021 May 2016
COVER STORY FDI 21 14
4 things Romania should do to market itself to international investors The Romanian state, with its public institutions, policymakers, and legislative capacity, has certain levers it can use to apply communication principles and promotion strategies to attract the interest of foreign companies. Let’s explore four ways in which Romania can promote itself as an investment destination on the international scene. By Claudiu Vrinceanu
Romania should intensify its promotion as an attractive destination for investors
1. KEY PROJECTS FOLLOWED BY PROMOTIONAL CAMPAIGNS
to attract digital nomads so much that it has
commercial attachés in the area of promotion
launched an advertising campaign promoting
and generation of strategic opportunities, but
Romania has drafted legislation for digital
itself as the new office destination for foreign
also for the creation of content that will better
nomads that could put Romania on the world
citizens: #CroatiaYourNewOffice.
promote our country in the eyes of foreign in‑ vestors. Establishing performance indicators
map as a destination for people who can work remotely and like to travel the world
2. INVEST ROMANIA
for Romania's trade attachés abroad would
while doing so.. The visa for digital nomads
The role of investment promotion agencies is
represent a new growth model for Romanian
would operate as a long-stay permit for third-
more important than ever now and Romania
business diplomacy.
country (i.e. non-EU) nationals who have an
could learn from other countries’ governmen‑
active employment contract with a company
tal bodies that focus on attracting Foreign
in the assessment of commercial attachés
or conduct business activities for their own
Direct Investments (FDI). Based on the needs
should be the rating provided by the recipi‑
company which is registered outside Roma‑
of strategic investors, Invest Romania could
ent of a service. In this regard, the Economy
nia, thus being able to work remotely, without
work to promote Romanian products and ser‑
Ministry should create an electronic platform
depending on a fixed location.
vices abroad and attract foreign investment to
through which all commercial attachés will
strategic sectors of the local economy. Invest
be evaluated and in which both companies
project, but it can only be implemented suc‑
Romania should develop multiple initia‑
that have completed or have abandoned the
cessfully in the real economy with the joint
tives with the aim of promoting Romanian
internationalisation process can participate.
contribution of public authorities and the
exports abroad. The Agency's efforts must
business environment. In the first phase, such
comprise trade and prospective missions,
a project can improve the country’s external
business rounds, support for the participation
image by creating global media coverage.
of Romanian companies in major interna‑
Next, we should look at what other European
tional trade fairs, arranging technical visits
institutions should better speculate moments
countries are doing. In Croatia, for example,
for foreign buyers and opinion makers to
that put our country on the world map in vari‑
there is a joint effort to unite digital nomads
learn about the Romanian production struc‑
ous fields. For example, key moments such as
and to provide them with various services. It
ture, and other select activities designed to
the UiPath IPO, international studies that rank
is important to not just make the laws that al‑
strengthen the country's branding abroad.
Romania above other countries on various
The digital nomad visa is a good niche
low digital nomads to operate in the country,
One criterion that should take precedence
4. BETTER PR FOR POLITICAL LEADERS WHEN ROMANIA BECOMES FAMOUS Romanian political leaders and local public
topics, and even Oscar nominations must all
but also to set up a contact centre for them,
3. BUSINESS DIPLOMACY
include a higher level of involvement from
because they may need help with various
Romanian diplomacy should be reformed
political leaders through public communica‑
issues once they arrive. In fact, Croatia wants
based on performance indicators (KPIs) for
tion at the institutional level.
www.business-review.eu Business Review | June 2021
22 BUSINESS ENVIRONMENT
Signs of recovery: new real estate transactions and better business sentiment Statistical signs of economic recovery are also being confirmed by data and trends from the real economy: we’re seeing new investments in real estate, a growing appetite for the creation of new companies, and optimism among foreign investors. By Claudiu Vrinceanu and society, a context in which investors and entrepreneurs need a healthy environment to develop predictable businesses, with business decisions that are based on reliable informa‑ tion. The fear of doing business has been re‑ placed by initiative and courage in business," said Adrian Dragomir, founder of Termene.ro and business consultant.
OPTIMISM AMONG FOREIGN INVESTORS The Spring 2021 Economic Forecast presented by the European Commission showed an im‑ provement in growth prospects compared to the Commission’s last forecast. For Romania, the economic growth forecast was adjusted to 5.1 percent for 2021 and 4.9 percent for The economies of all Member States are expected to return to pre-crisis levels by the end of 2022
R
2022, while the winter forecast had indicated an increase of just 3.8 percent and 4 percent, respectively.
eal estate investments in the first
renegotiations are decreasing. The volume of
quarter of 2021 totaled EUR 98 mil‑
leasing transactions on the Bucharest office
expected to return to pre-crisis levels by the
lion, according to the quarterly report
market increased in the first quarter of 2021
end of 2022. The gradual introduction of
released by real estate consulting company
to 48,000 square meters, a 9 percent decrease
projects under the Recovery and Resilience
CBRE. Office buildings in Bucharest and
from the similar period of the previous year
Programmes will contribute to boosting
industrial spaces in the west of the country
when the COVID-19 pandemic was still in its
investment growth.
generated most of the quarter’s transactions.
early stages in Europe, according to research
What is interesting to note is investors’ ap‑ petite for industrial projects: EUR 38 million
The economies of all Member States are
Similarly, the results of the FIC Business
by real estate consultancy Cushman & Wake‑
Sentiment Index (BSI) captured investors’
field Echinox.
generally optimistic perception regarding the Romanian business environment more than a
of the total volume was generated by transac‑
year after the outbreak of the pandemic, com‑
the volume generated by office buildings –
FEAR OF DOING BUSINESS REPLACED BY ENTREPRENEURIAL DRIVE
EUR 40 million.
Signs of economic recovery are also present
the health crisis was at its peak.
tions with industrial spaces, almost equal to
pared to the previous issue (fall 2020), when Foreign Investors Council (FIC) members
The most dynamic investors were com‑
in the number of newly created companies in
panies from Austria and the Czech Republic,
Romania, which grew by 73.6 percent in 2021,
have shown moderate optimism regarding
which generated approximately 60 percent of
a trend that shows confidence in economic
the course their businesses will take in the
the volume traded in the first three months,
development one year after the onset of the
coming period. Investors’ confidence in the
thus confirming the consistency of capital
pandemic.
Romanian economy is reflected in their an‑
flows in Central and Eastern Europe, as indi‑
In the first four months of 2021, 39,890
swers regarding investment plans for the next
companies were set up in Romania, compared
12 months. More than half of respondents
to 22,976 in the first four months of 2020, up
(51.1 percent) expected investments to grow,
office market, we can mention the fact that
73.6 percent, according to the Termene.ro
and only 13 percent said they would put them
pre-lease transactions are increasing, while
analysis. “2021 is the restart year for business
on hold.
cated by CBRE at the beginning of the year. As for other signs of a comeback on the
www.business-review.eu Business Review | June 2021 May 2016
MACROECONOMY COVER STORY 23 14
Romania’s trade deficit still widening despite export rebound As exports returned to growth and increased by 3.9 percent in early 2021, economic analysts have become more optimistic, but what should continue to be a cause for concern is the fact that Romania’s trade deficit stands at EUR 5.3 billion. By Claudiu Vrinceanu
current Export Promotion Programme, which proved to be severely dysfunctional due to various internal controls, meaning that the policy of supporting the internationalisation of firms is frozen. The Romanian government looked at the The number of Romanian tech companies developing on foreign markets is growing
R
number of fairs and missions funded in 2015 and 2019, respectively, and found that the average number of companies that partici‑
omania's macroeconomic health in
contribution is around 40 percent. Therefore,
pated in fairs decreased from 9 companies/
the context of the COVID-19 pan‑
there is a need to diversify products and
fair and 8 companies/mission to 8 compa‑
demic is largely based on the unique
services we send across the border and to bet
nies/fair and 7 companies/mission. Since the
contribution of domestic demand to the
on higher value-added goods, such as those
overall programme cost increased, it means
economic recovery, which in 2020 was more
generated by the IT industry.
that funding per company grew during the
consistent than had been previously esti‑
The number of Romanian tech companies
analysed period.
mated. However, the negative contribution
developing on foreign markets is growing.
of net exports has risen above expectations,
Every week, at least 10 companies announce
thing: the Economy Ministry has drafted
due to the growing gap between imports and
expansion plans, but it is not enough. These
an Emergency Ordinance on export promo‑
exports. The trade deficit has thus increased,
plans must be supported by policies and pro‑
tion. The project provides for a deduction
causing the deterioration of the trade balance.
grammes to support internationalisation.
of expenses related to the participation in
In Romania, exports make a 1.1 percent
The tech industry is keeping jobs and busi‑
But the government has achieved some‑
international fairs out of the profit tax for the
negative contribution to the increase of gross
ness going, but it is also keeping trade going
corresponding quarter. For micro-enterprises,
domestic product, according to the National
during these really difficult economic times.
the deduction is made from the income tax.
Institute of Statistics.
We can learn from other states when consid‑
Companies must cross the border di‑
ering the best ways to promote Romanian
rectly if Romania is to turn its economy into
region beat analysts’ expectations for 2020,
tech around the world and work with partners
a regional force, and the impact of Romanian
aided, among others, by a stable contribu‑
across the globe to really boost our presence
investments abroad deserves systematic
tion of net exports to growth. For instance,
on overseas markets, where we know there’s
support to strengthen our country's place in
Poland’s net exports contributed 1.1pp to
a rapidly-growing demand for IT services and
regional economic diplomacy. A comparison
the growth, based on a recovery of external
products.
with other countries in the region, including
For comparison, other economies in the
Bulgaria, Hungary, the Czech Republic, and
demand. A current challenge for the economy is the fact that Romanian exports are highly
PLANS TO GROW ROMANIAN EXPORTS
Poland shows that Romania still has a lot of
dependent on the car industry, as this sector’s
The government has decided to abandon the
work to do.
www.business-review.eu Business Review | June 2021
24 ENTREPRENEURSHIP
Romania gets behind EU’s unicorn hub ambitions There are more than 80,000 startups in the European Union (EU), of which 51 had reached a valuation of more than USD 1 billion by the end of 2020. Entrepreneurial communities across the continent have put forward ambitious plans to turn the EU into the biggest generator of unicorns within a decade. For Romania, the success story of UiPath, the locally-founded startup that went public in the US earlier this year, points to the possibility of more home-grown entrepreneurs coming up with billion-dollar ideas. By Ovidiu Posirca
Innovative companies are concentrated inside a few EU states, hampering startup scaleups
E
last year despite the health crisis,
in Q1, only 7 will stay in the EU after their
that people would pay for, to demonstrate
getting around USD 41 billion from
funding round, according to an action plan
product-market-fit. Given the scrappiness
investors. In the first quarter of 2021, 27 Eu‑
designed to turn Europe into a global startup
required to stay alive without the need for
ropean startups turned into unicorns, break‑
powerhouse. Meanwhile, the US produced
continuous fundraising, European founders
ing the USD 1 billion valuation milestone.
67 new unicorn startups in the first three
often enjoy more autonomy and less equity
The big numbers point to a positive outlook,
months of this year.
dilution. Entrepreneurs who want to explore
uropean startups raised more money
but there are still some challenges which are specific to the European market.
Of the 27 startups that became unicorns
“To the credit of Europe's startup ecosys‑ tem, generating revenue is the only way to
prove that the business is creating something
serving a niche market or get a market proof of concept might find Europe more inter‑
www.business-review.eu Business Review | June 2021 May 2016
esting for starting their business,” Cristian
ENTREPRENEURSHIP COVER STORY 14 25
Furthermore, fintech is becoming one
and networking, models and celebration,”
Dascalu, chairman of the Romanian Tech
of Europe’s largest investment categories,
Marius Ghenea, managing partner at Catalyst
Startups Association (ROTSA), tells BR. The
according to Martins Valters, cofounder and
Romania, tells BR.
association has signed the action plan.
CFO of Mintos, the Latvian startup that man‑
Innovation Commissioner Mariya Gabriel
ages a global marketplace for loans.
pointed out in a speech earlier this year
STARTUP POWER IN ROMANIA AND CEE
Europe that makes it difficult for startups to
Romania and the Cen‑
get funding, especially at the series A stage.”
tral and Eastern Europe
Moreover, innovative companies are concen‑
region can create their
trated inside a few member states and the
own cohorts of startups
lack of connections makes it harder for these
capable to compete at
startups to scale up across Europe.
the global level. For seven unicorn startups,
Council, while the Recovery and Resilience
which is roughly one
Facility worth almost EUR 700 billion also
company per 185,000
seeks to boost entrepreneurship and support
inhabitants, marking a
job creation after the pandemic.
world record. “CEE has a great
wide “unicorn factory” in which entrepre‑
advantage - most of its
neurs are propped up by a mix of grants and
countries are small, so
direct equity investments.
enterprises there natu‑
“Europe is an interesting place when
Ghenea suggests.
instance, Estonia has
ling funds through the European Innovation
The Commissioner envisages a Europe-
Romania should aim to have 100 tech com‑ panies worth USD 100 million and more,
that “there is a substantial market failure in
To change the status quo, the EU is funnel‑
Instead of trying to replicate UiPath,
rally have ambitions to scale abroad, which
Romania should position itself as a huge
compared to US or Asia. At first sight, it is
makes them more agile and oriented towards
reservoir of talent with excellent business
lagging in terms of innovation support, but
rapid growth. The Baltics is also a good
and cultural skills and finally with an invest‑
if we look closer, we can see that Europe is
example of what can be achieved in a short
ment ecosystem which is maturing and
leading the pack on greentech, especially
period of time,” Valters tells BR. The region
becoming able to support startups as they do
since the former US Administration withdrew
has been successful in building up attractive
in other more developed countries, says the
from the Paris Agreement. The subsequent
startups, especially after Brexit. The UK lost
Catalyst Romania managing partner.
underfinancing of greentech in the US cre‑
access to utilising European Economic Area
Despite the health crisis, Romanian start‑
("EEA") passporting rights after its
ups got over EUR 20 million in pre-seed and
high-profile separation from the EU.
seed rounds in 2020. Typing DNA, Soleadify,
For Romania, the success of UiPath, whose market capitalisation tops USD 40 billion, provided a shot
and DeepStash got one third of all the fund‑ ing. “The best way for a country to become a
in the arm for the local entrepre‑
super-power in technology is to arm the pri‑
neurial scene.
vate markets with a stable legal framework,
“I hope that we are almost at a
low taxation, and enough public money
time when every smart kid dreams
managed by private fund managers,” Cristian
of becoming the next Daniel Dines
Munteanu, managing partner of Early Game
and creating the next UiPath, the
Ventures, a startup investment fund, tells BR.
next multi-billion tech business.
The local market has some aces up its
And we see now, as investors, that
sleeve that can support the creation of new
the number of early stage com‑
companies. There are certain tax facilities
ated market gaps that European companies
panies with real chances to succeed on the
for new firms and the workforce is relatively
immediately capitalised on and will continue
very competitive international tech mar‑
competitive. Romania is a good place to start
to do so, in part thanks to the Green Deal
ket is increasing exponentially, so we will
a company and sprint through the earlier
facility. Furthermore, France is silently, but
certainly witness more successes in the near
stages of a startup’s journey, Iceberg special‑
efficiently conquering the market in the deep
future for Romania, more entrepreneurs and
ists suggest. As the startup grows however, it
tech segment,” representatives of Iceberg, a
companies going from zero to hero in a short
will have to deal with lower funding geared
Romanian innovation consultancy firm, tell
period of time, as long as they have the right
towards research and development and red
BR.
support ecosystem: financing, mentoring,
tape that could become cumbersome.
www.business-review.eu Business Review | June 2021
26 ENTREPRENEURSHIP
PNRR set to enhance local startup funding ecosystem Around EUR 200 million of the National Recovery and Resilience Plan (PNRR) that Romania is negotiating with the European Union (EU) will be used to fund local high-tech startups. Although it represents a small fraction of the EUR 29.2 billion the country aims to get from the EU, it showcases the state’s attempt to play a bigger role in the development of the entrepreneurial economy. By Ovidiu Posirca
Romania placed startups among a wider range of projects it aims to fund through the PNRR
R
omania has good PhD theses with
and that the third idea that scales already
ment plans. The state is trying to become a
results that cannot be put into prac‑
brings a profit for the country,” the minister
player in the startup field after UiPath, the
tice at the moment due to the lack of
said during a TVR interview.
company with Romanian founders, was listed
funding, says Ciprian Teleman, the minister
“The grants will exclusively target the
of research, innovation, and digitalization. He
technologies of the future. We are talking
suggests that the PNRR may include financial
about artificial intelligence, blockchain,
instruments that could help turn ideas into
machine learning, quantum communication,
profitable businesses.
on the NASDAQ and reached a market cap of close to USD 41 billion earlier this year.
quantum cryptography,” the minister added.
ROMANIAN ECONOMY TO BENEFIT FROM MORE TECH STARTUP INVESTMENTS
“It's true that some of them will fail, but
If the European Commission (EC), the ex‑
It is particularly difficult to foresee how this
the experience of countries that have done
ecutive arm of the EU, approves the EUR 200
funding will be distributed across technolo‑
this, such as Israel, proved that if two ideas
million budget, the programme could become
gies, regions, and years, say representatives of
are scaled up, all the investment is recovered
operational in August, according to govern‑
Iceberg, a Romanian innovation consultancy
www.business-review.eu Business Review | June 2021 May 2016
ENTREPRENEURSHIP COVER STORY 14 27
firm. Considering the big picture, they say,
that the public administration should instead
cial focus on processors. It also wants to build
EUR 200 million doesn’t look like such a big
take a wider perspective.
a cloud infrastructure that will be used by
number.
“If I were them, I would stick to more basic
both public authorities and private players. In
concepts about using this money for tech‑
this field, Romanian officials have also talked
tive startups & SMEs will be significantly
nology investments in startups, early-stage,
about the government cloud project, which
lower than EUR 200 million, because of
and fast-growing Romanian companies,” he
should dramatically increase the adminis‑
implementation costs. Then, we don’t know
argues.
tration’s digital capabilities and improve its
“First of all, the actual support to innova‑
relationship with taxpayers.
who will evaluate applicants’ degree of in‑ novation and business potential. There is still
EU experts are also proposing the creation
a stringent need for capacity building among
HOW THE RECOVERY AND RESILIENCE FACILITY WORKS IN PRACTICE
of a government-backed venture capital
the institutions supporting and financing
EU states will have around EUR 672.5 billion
fund to increase access to finance by SMEs
technology and innovation, the absence of
available through the Recovery and Resil‑
and startups for the development of digital
which has resulted in several meaningful
ience Facility launched by the EC in Febru‑
designs and IP blocks.
innovators being forced to seek external or
ary 2021. The programme has two specific
Innovative entrepreneurs with products and services in competitive areas
private funding. Finally, the degree of
targeted by the EU are set to ben‑
bureaucracy surrounding public
efit from an influx of funding
funding renders innovation
through the new facility. The
quasi-futile," Iceberg repre‑ sentatives tell BR. How‑
onset of the pandemic has
ever, they concede that the
generated higher demand
funding will be valuable for
for digitalization tools, as
the ecosystem if the right
digital channels have helped a large number of firms stay in
intermediaries to manage the
business while lockdowns were
distribution of funds are put in
being enforced across the continent.
place. The red tape that startups must go through
targets: at least 37 percent of the money must
Startup investments in Europe reached
in order to get grants might discourage some
go to investments to mitigate climate change
a record of USD 41 billion by early Decem‑
founders, who might instead choose private
and reforms, and at least 20 percent should
ber 2020 and the funding environment will
funds in order to move faster.
go towards supporting the digital economic
remain on a growth trend this year as well.
transition in the 27 EU states.
Romania’s PNRR funding of startups could
Romania is placing startups among a wider range of projects it aims to fund through the
The Commission will raise the
PNRR, which includes highways and energy
money by issuing bonds, and
efficiency investments. The disbursement of
all projects should be
funds is also linked to certain reforms that
implemented by 2026.
contribute to the bigger vision of turn‑ ing the EU into an international startup hub by the begin‑ ning of the next decade.
After Romania
“Such a plan devel‑
period. All in all, the investments should be
submits its PNRR
oped in collaboration
carried out in the next five years.
documentation, the
with tech startups
Commission will
and support organ‑
tech companies in Romania will be the best
have two months to
isations can indeed
investment the government or anybody else
analyse the plan, and
represent an oppor‑
could make, as returns will be huge,” Catalyst
will be able to approve
tunity to build up the
Romania managing partner Marius Ghenea
it after another month.
national entrepreneurial
tells BR. He adds that there are countless IT
Subsequently, the EU will
firms in Romania that are growing much fast‑
pay in advance 13 percent of
er than the pace of the economy, and this has
the total financial volume ap‑
a big impact in the country. Entire towns and
proved for investments. As development
Public policies supporting innovative compa‑
cities in Romania are now thriving because of
targets are met, the Commission will release
nies focused on the application of advanced
the tech people in those communities, who
new funds to every country.
technologies, whose products have the po‑
Romania must implement during the funding
“Any additional funding made available for
ecosystem and a continu‑ ation of the global impact of local tech product companies.
are buying properties, injecting money in lo‑
The EC has outlined some of the tech
tential of reaching international markets, will
cal retail and services businesses, and foster‑
segments in which Europe wants to gain a
boost economic development and encourage
ing education in their areas, Ghenea says.
competitive edge. The facility aims to prop up
entrepreneurial culture,” Cristian Dascalu,
Regarding Romania’s ambition to fund AI
Europe’s design and production capabilities
chairman of the Romanian Tech Startups As‑
startups through the PNRR, Ghenea suggests
in microelectronics technologies with a spe‑
sociation (ROTSA), tells BR.
www.business-review.eu Business Review | June 2021
28 INTERVIEW
Two degrees from two leading universities: the University of York and the University of Strasbourg Professor Leslie Szamosi, Executive MBA Director, and Alina Toader, Country Manager at CITY College, University of York Europe Campus, talked to Business Review about the importance of the Pan-European Executive MBA and the novelty that the Pan-European Executive MBA brings on the local market, highlighting details about the application procedure. By Anda Sebesi study trips). The curriculum emphasises ex‑ periential learning through real-life projects, workshops and career coaching, broadening students’ applied knowledge and skills and building strategic leadership skills. MBA par‑ ticipants may specialise in one management area by choosing one of the six (6) available MBA specialisations: General Management, Marketing, Finance, Logistics and Supply Chain Management, Health Care Manage‑
During the pandemic, businesses had two options: to disappear or to reinvent. How can an MBA reinvent? Prof. Leslie Szamosi: This has been a trying
Prof. Leslie Szamosi: Over the last 30 years
ment, Human Resource Management. The
CITY College has been offering the Executive
programme is accredited by the Association
MBA programme across South East and East‑
of MBAs (AMBA) and the Chartered Manage‑
ern Europe, making it one of the best MBA
ment Institute, UK (CMI).
period for all of us and, yes, the ways that
choices in the region. Today, the world-class
people and businesses function has gone
Executive MBA programme advances to a
through a dramatic transformation. For the
joint dual degree programme, the Pan-Euro‑
business school market we will (and have)
pean Executive MBA, offered by CITY College,
seen some schools disappear which is a natu‑
University of York Europe Campus and the
What about the application procedure for Pan-European Executive MBA that students may follow? Alina Toader: Selecting candidates for
ral occurrence when they are not resilient
Faculty of Economics and Management of the
admission to the Executive MBA programme
enough to cope with changes, especially dra‑
University of Strasbourg.
(EMBA) is a critical decision. We believe that
matic ones. For those remaining, reinvention will be the key going forward.
The Pan-European Executive MBA offered
there is more to selecting a candidate than
in Bucharest builds on and develops further
just considering scores, GPA’s and other mere‑
“Change is the only constant” in today’s
the strengths of the current Executive MBA
ly numerical performance indicators. For this
business environment and this also holds for
programme. In addition to the dual degree,
reason, admission decisions for the EMBA
MBA programs. For strong MBA programs
the EMBA programme offers to its students
take into account three primary areas of
reinventing has to be a core part of their DNA.
a truly international experience: three study
evaluation: Professional Experience (length,
A program needs to be continually looking
trips - in York (UK), Strasbourg (France) and
breadth, and depth of professional and
at what it is presenting and delivering to stu‑
Thessaloniki (Greece). Moreover, lectures
managerial experience; potential for career
dents. Our evolution to a dual-degree MBA
are held by distinguished professors and
development and progression); Academic
program with the University of Strasbourg,
international academics from CITY College
Qualifications (a bachelor’s degree from an
and the addition of a unit on open collabora‑
University of York Europe Campus and the
accredited institution or previous postgradu‑
tion tools and sustainable society, is a part of
University of Strasbourg.
ate level studies with a satisfactory level of
our own reinvention moving forward postpandemic.
What can you tell us about the Pan-European Executive MBA now available in Bucharest, too in terms of innovation, approach and benefits?
The Pan-European Executive MBA pro‑
achievement); Additional Relevant Criteria
gramme now becomes even more accessible
(potential contribution to the learning experi‑
to busy executives who wish to combine work
ence of the programme; motivation; ability
and study, as students may choose between
and willingness to commit the required time
the Executive Mode (face-to-face delivery
and energy to the programme; community
plus 3 study trips) or the Executive Mode
service and professional activities; support
Blended (synchronous online delivery plus 3
from an applicant's employing organisation.
www.business-review.eu Business Review | June 2021
30 MOBILE ADVERTISING
Romania’s mobile advertising industry starting to bloom Httpool, an Aleph Holding company and global partner of top digital platforms (Facebook, Spotify, LinkedIn, Snapchat, etc.), published a paper titled “All of the Colours of Mobile Advertising 2021,” created to help marketing specialists build and improve their mobile advertising strategy this year. By Romanita Oprea
Ruxandra Papuc, McCann Bucharest
R
Alexandra Tudor, Kubis
ight now, almost 2 billion people have
director at McCann Bucharest, says that the
mobile advertising managed to attract 60 per‑
access to the internet through smart‑
industry is growing and the constant updates
cent of the total online advertising revenue in
phones – the equivalent of 51 percent
mean that we can never get bored. New me‑
Romania last year.
of the 3.9 billion global users of mobile
dia is popping up everywhere you look. From
technologies, according to WARC. According
rich formats to new content models, every‑
being stuck at home, social distancing and
to data analysed by the company, mobile has
thing we know gets reinvented on a regular
quarantines, mobile advertising seemed like a
the potential to remain a leader in the tech
basis. “What needed to be explained two
sure winner for both marketers and advertis‑
space for the foreseeable future, especially
years ago is now the norm and answers to an
ing professionals. “During the pandemic, con‑
in the context of the accelerated digitaliza‑
increasingly picky audience. You need to be
sumers turned to their phones for tasks and
tion driven by the pandemic. According to
more relevant than ever and really work your
activities that they would have normally car‑
data provided by IMARC Group, specialists
brain off to be interesting. Entertainment is
ried out in person. As a result, smartphones
estimate that the global mobile device adver‑
on the rise and, in my opinion, there will be
have become an extension of themselves,
tising market will reach USD 269.1 billion by
a new era in advertising as purpose becomes
with constant interaction from the minute
2026. Furthermore, Retail Marketer expects
norm,” Papuc explained.
they woke up to when they went to sleep.
54 percent of all online shopping to be carried out via smartphones by the end of 2021.
At a time when consumers struggled with
With people spending an average of 3.44
PANDEMIC DID NO DAMAGE
hours per day online using a mobile device
The mobile advertising & communication
(We are social data, 2021), mobile advertis‑
advertising & communication industry stand
landscape proved resilient in the face of the
ing became an even more attractive space for
today, from a strategic and creative point of
pandemic turbulence, and a good example
brands, offering them the opportunity to cre‑
view? Ruxandra Papuc, executive creative
of this was an IAB Study which showed that
ate mobile-specific content that drives loyalty,
But where does the Romanian mobile
www.business-review.eu Business Review | June 2021 May 2016
MOBILE COVER ADVERTISING STORY 14 31
engagement, entertainment, and cultural
believes that the best word to describe the
help brands drive culture. A good example
change,” said Alexandra Tudor, senior strate‑
phenomenon would be “exploration.” “We’re
in this regard comes from our work at Kubis.
gic planner at Kubis.
now looking at mobile communication from
#SarbatoareDinOrice, Pepsi’s winter challenge
a more holistic perspective. We’re eager to
on TikTok with Fuego, became a viral digital
in popularity for some time now, but locally
discover new features for the apps we use and
phenomenon that accessed Gen Z’s pop-
it has been recognised as a major industry
push the boundaries of new formats as much
culture conversation in a relevant way,” the
disruptor only since 2017, when it became a
as possible. We no longer have brainstorming
Kubis representative explained.
She argues that mobile has been growing
must-have for any brand communica‑
And yes, clients seem to be more
tion framework. According to Tudor,
open to mobile apps in Romania as
the pandemic has accelerated this pre-
well, with Papuc arguing there’s no
existing growth trend, with Romanians
longer a barrier when it comes to
increasingly perceiving their mobile
discussing the idea. A few years ago,
devices as tools for entertainment and
dropping the app bomb would take
shopping, rather than just communica‑
courage on all sides. Now, the market
tion tools. As a result, mobile suffered
is more mature. “It’s no longer just yes
less than traditional media, with
or no, it’s ‘let’s find the strategic angle
mobile ad investment still expected to
to it.’ We also have a better understand‑
grow both locally and globally in 2021.
ing of the different types of apps and
Moreover, as Canopy CEO Eugen
we can tell what has a better chance to
Predescu added, mobile devices are
be a hit,” Papuc added. However, her
definitely the most popular in terms
opinion is not shared by Canopy’s CEO
of online traffic at this moment. In
when it comes to the strategic side, as
most industries, over 75 percent of
he points out that the problem is that
traffic comes from mobile phones.
after an app is launched, there is some‑
“It is crucial to develop mobile-first
times no specific marketing strategy
strategies for everything from websites
for it. “We often find ourselves in the
to advertising solutions. Advertising
situation where the advertising budget
platforms allow you to create different types
sessions that don’t involve a call to our Chief
is 20 times smaller than the app development
of interactions with your customers. It is
of Technology,” Papuc said.
budget. It is impossible to get the proper
very important to create specific content for
In turn, the Canopy CEO is seeing more
engagement for an app in this situation,”
each device. All companies should person‑
and more businesses looking to build their
alise their strategies and content for mobile
own mobile apps. He believes that to be a
devices,” he said. As a way to acknowledge
big plus, but at the same time, he argues that
e-commerce during the pandemic accelerated
the importance of this mix, Canopy started a
company representatives must keep a few
the development of mobile payment apps as
partnership with the pastel agency that would
things in mind when thinking about add‑
well, therefore brands started to redirect their
help them offer customers the personalised
ing an app to their portfolio. Questions such
attention from other channels to mobile.
experiences they are looking for.
as: “What will be different from the mobile
“The secret of a good mobile advertising
version of the website? How will customers
campaign is smart, creative, and personalised
pensive and, in order to optimise their invest‑
migrate from the website to the app? How
content targeted in a performance-oriented
ments, companies are focusing on conversion
will we keep people who download the app
way. From my point of view, the mix between
rate optimisation. This translates into better
engaged?” must all be on the list when devel‑
creativity and performance can ensure the
experiences and solutions designed for mo‑
oping a brand’s mobile strategy.
success of a mobile campaign. When you
“Getting more traffic is starting to get ex‑
bile devices. Furthermore, online competition
On the other hand, Alexandra Tudor is
Predescu argued. Alexandra Tudor notes that the rise of
know who to target, on which device, using
has increased significantly over the past two
looking towards TikTok and mobile gaming as
what formats and create different ad sequenc‑
years, especially during the pandemic. This
the main factors of influence and change. She
es that you can deliver based on specific
was one of the few positive aspects of this pe‑
believes that in terms of emerging trends on
scenarios, you can create mind-blowing
riod. Thanks to this acceleration, all internet
the local market, TikTok is the social media
personalised campaigns that can go viral and
users are having better online experiences,”
winner of 2020. “The secret of TikTok’s
help you scale overnight,” Eugen Predescu
Predescu noted.
success was its ability to deliver positivity,
said.
humour, and entertaining content at a time of
Meanwhile, Ruxandra Papuc thinks that
WHAT’S NEXT?
stress and discomfort for consumers around
the main factor of success is insight, as noth‑
Looking to the future and anticipating
the world. Mobile audiences turned to TikTok
ing, no matter how funky or techy it is, will
trends, the McCann Bucharest representative
to create “meme-able” moments that could
ever work without good insight.
www.business-review.eu Business Review | June 2021
32 DIGITAL
How to check if your brand is digitally healthy Digital is now part of everything we do, and digital marketing is no longer separated from traditional approaches. Digital is much more than a communication tool; it requires a lot of resources and talent including designers, developers, content writers, project managers, data scientists, marketeers, etc. – and they must all work together to meet a common goal. By Romanita Oprea sures how interesting the brand is for con‑ sumers, the Content Power Score measures the brand’s online presence starting with the sources of mentions in the digital.ro space and weighs the impact of these mentions (viewership). In other words, it is not enough to have many online mentions; they also need to have strong visibility to get a higher score. The Conviviality Score measures a brand’s empathy level through the number of positive interactions on social media. The advertising industry often relies on instinct. There are two options when you’re looking at data: either it validates your instinct and it feels like a super-power or it gives you a new angle. Imagine a transparent watch – if it stops, you can see which of the little wheels stopped and react in real time. “For us it was a dream come true to see on our screens whatever the entire market was doing live, how consumers perceived actions, and what went well or wrong, both quantita‑ tively and qualitatively. Our intention is very altruistic; we are giving the market a ranking system based on tonnes of data, which leaves no space for subjectivity. Our hope is that by Nicu Enache, Grapefruit
P
releasing new rankings each month, they will become a reference and guiding element for each brand’s marketeer. We already have 100+
ublicis and Digitas Romania, with
rankings have been generated for several key
brands in our rankings, and the list will grow,”
the support of the Data Intelligence
industries.
said Calin Buzea, Managing Director at Digitas
Team from Publicis Groupe Romania,
Using multiple data sources, the DHI is
Romania. Another action to identify healthy digital
have developed the Digital Health Index, a
a modern, complex tool for the qualitative
proprietary tool that measures brands’ health
and quantitative measurement of all brand
brands on the market was taken by the
in the digital world. The DHI was designed
indicators, for selected brands and their com‑
Grapefruit agency, which launched the Digital
to provide clients with real-time relevant
petitors, helping to restore the connection
Evaluator tool. Agency representatives say
information about the status of their brands –
between consumers and brands.
that over the years, they had noticed that
from brand X-rays and competition analyses
The Digital Health Index consists of three
many professionals talked about digitaliza‑
to various predictions that streamline busi‑
key indicators, each representing a third of
tion, but not all of them were practicing it.
ness decisions. Based on the DHI, monthly
the total score: the Digital Power Score mea‑
At the beginning of this year, they created
www.business-review.eu Business Review | June 2021 May 2016
an eBook together with 8 chartered market‑
COVERDIGITAL STORY 33 14
But what does it actually mean for a brand
results with the industry, and share a unique
ers and spoke about the best way to build a
to be healthy, especially in the online space?
URL with work peers. After five or more
resilient marketing strategy. Going through
According to Calin Buzea, the answer revolves
assessments are made by employees of the
their answers, the Grapefruit team noticed
around interest, impact, and empathy. The
same company, they will have access to the
how important it was for a marketing profes‑
three sub-scores of the Digital Health Index
aggregated results, which will help them see
sional to know where their company stands in
measure people’s interest in a certain brand
where the company is positioned and identify
terms of its digital presence. And that was the
or subject, the impact (visibility) of brands,
the gaps that need to be addressed.
moment they started to outline the idea for
and the scale of positive engagements on so‑
this tool. Before they started working towards
cial media – all in one single view, where the
customer’s voice, keep your finger on the
bringing it to life, they held feedback sessions
brand evaluates its position among specific
pulse, and have an objective approach. Loy‑
with several heads of digital from various
competitors.
alty platforms, social media groups, commu‑
companies and industries. The feedback
“A healthy brand has a human approach
“The second step is to always listen to the
nity management, constant communication,
helped validate their idea, as many of them
towards all stakeholders, and that also
QAs, live videos, and UGC are just some of the
agreed that a tool like this would be necessary
includes optimising its digital capabilities.
ways a brand can get feedback from custom‑
on the Romanian market.
From customers to employees,
“We saw the Digital Evaluator as an im‑
everyone needs a platform that
pulse for all professionals in marketing and
matches their needs. Custom‑
digital departments to start prioritising the ar‑
ers need a place that provides
eas that need the most attention. We had tried
information, facilitates the
several tools on the market, but you either
buying process, helps them com‑
had to pay to see the results or they didn’t
municate efficiently with brand
cover all the aspects of digital maturity,”
representatives, and makes them
explained Nicu Enache, Senior Digital Market‑
feel heard by the brand. Plenty of
ing Consultant at Grapefruit. Moreover, he
businesses tend to opt for short-
believes that the Romanian market needed a
term campaigns with great re‑
tool like this, especially after 2020, when digi‑
sults on the spot, but don’t take a
talization was accelerated and maybe even a
long-term strategy into consider‑
bit rushed. Therefore, Grapefruit wanted to
ation. These campaigns can have
have a positive impact on as many organisa‑
a certain impact, but they’re not
tions as possible.
contributing to a long-lasting
“We’re offering them a free tool to assess
positioning in the consumer's
their organisation’s digital capabilities, share
mind and don’t make them feel
it with their colleagues, compare it to its
that their voice is heard and their
industry or a secondary one, and have a clear
needs understood,” Nicu Enache
overview of its digital maturity. We believe
explained.
it will at least start a conversation between
Employees, on the other hand, need plat‑
ers. Constantly engaging with customers and answering all their questions can provide
a company’s departments, break some silos
forms and digital processes to facilitate their
brands with a better understanding of their
and, why not, lead them to prioritise and
everyday tasks. There are many organisations
needs and wants,” Nicu Enache said.
focus on the right things when it comes to
that still don’t use a CRM; they keep their
digitalization. In the end, we would like to
databases on multiple Excel spreadsheets and
need to build a data tool and armed them‑
leverage conversations around the Digital
they lack tools that could streamline pro‑
selves with ambition and patience, it took
Evaluator. We are confident that perspectives
cesses, which directly impacts their employ‑
a few months to define, organise, find data
are different within any organisation, but
ees’ productivity and satisfaction. Business
sources, build real-time connectors, and
there is value in uncomfortable conversa‑
process optimisation is of great importance
develop the best data visualisation methods.
tions,” said Nicu Enache.
for a brand and the company behind it.
Then they spent about 6 months calibrating
For Digitas, after they determined the
But how does one build a healthy digital
it using several brands. “But it was worth it.
wave of digital initiatives, in the hope that it
brand? According to Grapefuit’s senior digital
Now you can check your brand’s health from
will provide a clearer picture of a company’s
marketing consultant, the first thing to do is
the seaside while drinking a Martini just like
positioning. Companies can evaluate their
to evaluate the company’s current situation in
you check your Apple Watch to see your own
strengths, weaknesses, and where they stand
terms of its digital maturity – and this is what
heart rate. My advice if you wanted to build
compared to the competition, and based on
the Digital Evaluator tool is designed to do.
something similar would be to be persuasive,
these results they can start planning for their
A marketing or digital professional in a com‑
patient, and to not take ‘no’ for an answer,”
next digital initiative.
pany can carry out the assessment, compare
Buzea concluded.
This tool came as a response to last year’s
www.business-review.eu Business Review | June 2021
www.business-review.eu
34 FUTURE FOOD Business Review | OF May 2016
COVER STORY 14
The future of food: are insects going to be part of our daily menu? The European Commission recently decided that the yellow mealworm was safe to eat, making it the first insect to be included on a list of “novel foods” approved for consumption in the EU. Business Review talked to Constantin Muraru, communication and research manager at the International Platform of Insects for Food and Feed (IPIFF), a non-profit organisation that represents the interests of the insect production sector among EU policy makers, European stakeholders, and citizens. By Oana Vasiliu (‘biocontrol’) sector or in the production of exotic pet food (e.g. reptiles) have diversified their economic activities by creating produc‑ tion lines for human and/or animal food. They have been joined by numerous innova‑ tive startups that have optimised agricultural systems in Southeast Asia – identifying insect species found on the European continent that give the best yield in terms of process‑ ing residues from agri-food fields like fruit or vegetable peels, fermentation residues or former foodstuffs, such as production surplus, deformed products or expired food that has been produced in compliance with EU food laws.
Which insects are eligible to be designated as novel foods at this point? What does this process involve? Currently, the EFSA is evaluating a number of novel food cases and the products that may be authorised in the coming months are di‑
When did insects become an interesting topic for the EU and why?
ments such as insect farms is a topic that has
verse – from chia or rapeseeds to micro-algae
only gained popularity over the last decade.
or insects. Among the insect species, we can
The subject of insect breeding is not new in
Companies operating in the pest breeding
mention crickets, locusts, soldier fly larvae
European Union countries. Some species of insects have been bred for silk production (sericulture) in Europe since the 12th century or more recently for pest control through biological methods – where insects that play a beneficial role in nature are intentionally spread on agricultural land or in controlled environments such as greenhouses to control various pests. For example, ladybugs can be used for aphid control, as a substitute for toxic insecticides. However, raising insects for human and animal consumption in controlled environ‑
www.business-review.eu Business Review | June 2021
FUTURE OF FOOD 35
Photo: Protifarm
Photo: Protifarm
The texture of food is similar to what we already know: Pasta with mince made of insects
How a falafel looks like
than 100 grams of chicken breast. However,
incorporated into bakery products, burgers
Are insects going to be used any other way? Are studies being carried out for other industries as well?
and meat-like products, high-protein pasta,
As seen in nature, where insects are an es‑
the human diet. For a balanced diet, we need
etc.
sential component of most food webs, insect
a variety of food sources, and insect-based
larvae have extraordinary abilities in terms of
products and animal products can comple‑
transforming and converting organic matter.
ment each other.
or flour worms. These insect species may be allowed to be used as protein-rich powder or
In addition to the main steps – the elabora‑ tion of a scientific brief, the evaluation by
the IPIFF and its members do not aim to re‑ place meat or animal products (dairy, eggs) in
the European Food Safety Authority (EFSA)
In the field of human nutrition, there
and the authorisation of the Member States,
are various studies on the use of proteins or
the process is a rigorous one. The applicant
lipids (i.e. oil) extracted from insects. For ex‑
Does insect farming have less of an environmental impact than other businesses?
must prepare a complete brief that includes
ample, researchers at the University of Ghent
Recent studies have confirmed the low
toxicology or microbiology studies, validity
(Belgium) evaluated the potential of insect
environmental footprint of insect farming.
testing, and other such documents. This pro‑
lipids as a partial substitute for butter in Bel‑
Depending on the technology being used, the
gian waffles, showing that insect
footprint of insects can be as low as half that
oil can replace up to 25 percent
of chicken or soy products. The main advan‑
of the amount of butter used.
tages of growing insects include the small
Another fascinating use case
area needed to build a farm, because these
for insects is in the pharmaceu‑
farms are arranged vertically, and the small
tical industry, mainly for the
amount of water required, because these spe‑
extraction of substances with
cies get the water they need from the food
antibacterial or antiviral roles.
they consume.
Photo: Protifarm
For example, insects contain chitin, which is used as a supple‑ ment for heart problems or as an antibacterial agent.
Who is going to feed the planet of tomorrow? What will be on our plate in the future? According to United Nations experts, the
Are insects a viable meat substitute for humans or animals?
planet's population could reach 10 billion people by 2050. Therefore, the need to
cess confirms the high food safety standards
Due to the high content of protein and es‑
produce enough quality food for another 2
imposed by the European Commission and
sential amino acids, insects can contribute to
billion people is urgent, and to achieve this
the EFSA, and the fact that submitted insect
the occasional replacement of meat products
goal, adding new and innovative solutions
product briefs normally pass the assessment
at an individual level. In other words, 100
to existing agricultural systems, including
phase confirms the insect production sector’s
grams of insects can contain about 60 grams
insect or algae growth, will play an important
commitment to food and consumer safety.
of protein – that’s almost three times more
role.
www.business-review.eu Business Review | June 2021
www.business-review.eu
36 ENVIRONMENT Business Review | May 2016
COVER STORY 14
The challenge to find Romania’s next Vacaresti Park In an attempt to find more natural areas in Romanian cities, the Vacaresti Natural Park Association aims to mobilise urban communities to identify, document, map, and promote ten more natural areas in major cities of the country and five others in the urban and peri-urban areas of Bucharest. By Oana Vasiliu promote our natural heritage, a tourist attrac‑ tion, and an example for other cities in the country,” says Florin Stoican.
A MODEL FOR OTHER CITIES Vacaresti Park is not the only place in the country that could be turned into a protected natural urban area. Cluj-Napoca has the East Park, for which the City Hall and the Order of Architects organised an international design competition. 27 solutions were submitted, Photo: Helmut Ignat
and the winning proposal is going to keep a significant part of the park as an urban natu‑ ral area. In Brasov, the mayor's office set up a commission to analyse the establishment of the Brassovia Natural Park, which would Vacaresti Natural Park as seen from above
U
cover a large forest area in the peri-urban areas of Brasov and other nearby townsthe city like a ring. “We also have partners and
nlike urban parks, natural areas
for citizens, given that over half of the global
projects in Satu Mare and Timisoara, as well
involve elements of biodiversity
population already lives in urban areas,
as a long list of candidate cities, out of which
conservation and environmental
and this figure is growing rapidly. “Urban
we will select six more areas from six other
education and they play a key role in the
natural areas have a role in fighting climate
cities, as well as five more areas in Bucha‑
process of adapting cities to climate change.
change through carbon sequestration (the
rest," says Florin Stoican, adding that in order
In the face of this phenomenon, cities are
process of capturing and storing atmospheric
to establish an urban natural area, “we need
among the most vulnerable ecosystems,” says
CO2), cleaning up the air, conserving urban
to identify an area that is worthy of protec‑
Florin Stoican, nature conservation specialist
biodiversity, as well as offering environmen‑
tion, engage the local civil society – which we
and president of the Vacaresti Natural Park
tal education and healthy leisure activities,
support through know-how and resources –,
Association.
including spaces for practicing sports, and
and be met with openness from local authori‑
much more,” Florin Stoican adds.
ties.” These things can only happen if citizens
Following a national advocacy campaign, Romania is expected to soon adopt legislation
The Vacaresti National Natural Park is the
are willing to take part in the project and play
on the conservation of urban natural areas,
first urban natural park in Romania, thanks to
a supportive role. “Protected urban natural
currently under review in the Parliament.
a 2016 decision that came after many years of
areas can only be a reality if citizens get
This would represent a major step forward for
lobbying and advocacy from NGOs. “It repre‑
civically involved and demand this for their
Romania, helping it meet the environmental
sents a square metre of green space for every
communities. We need support and persis‑
commitments made through the European
person living in Bucharest, a space where
tence from every citizen in demanding action
Ecological Pact, which urges member states
they can interact with nature and wildlife
from local and central authorities to help the
to plan and implement solutions for biodiver‑
that’s close to home, an open-air school with
smog-stricken urban areas of Romania turn
sity conservation in cities.
a huge potential for environmental education
into European green cities,” argues Elena
– because it is located right next to 10 percent
Calistru, president of Funky Citizens, one of
of the country’s population –, a platform to
the organisations supporting the initiative.
Urban natural areas could also contribute to mitigating the effects of climate change
www.business-review.eu Business Review | June 2021
ECO 37
New trend in Romania: zero waste stores Zero waste stores are finally growing into a trend in Romania – better late than never – offering all natural, sustainably sourced, eco-friendly, and plastic-free alternatives to items people use in their everyday lives. Business Review has made a list of the places where you can find such sustainable products. By Oana Vasiliu
SIBIU Naked Shop (1 Alexandru Odobescu Street) is located near Piata Mare and it was created out of the desire to live and promote a sustainable lifestyle that is as natural and minimalistic as possible, to encourage change, and to em‑ brace nature through sustainable, eco-friend‑ ly, green, and plastic-free products created using natural materials.
CLUJ-NAPOCA Vera Green (6/8 Aleea Scarisoara) also oper‑ ates as an online store where you can mostly
Bucharest Zero Waste Store
T
find cosmetics and detergents as well as cleaning products for any type of space and
he latest data regarding the recycling
Guard carried out checks across the country
surface. They also have a selection of organic
of municipal waste showed that
regarding the application of waste manage‑
solutions for sandwiches, fruits or snacks,
Romania had reached a rate of only
ment legislation. With these figures in mind,
as well as ideas on how to become more eco-
13.9 percent, totalling 739,384 tonnes, accord‑
zero waste stores seem like a natural step
friendly.
ing to the Annual Report on the State of the
forward, but at the same time, they remain a
Environment for 2018 issued by the National
very niche shopping destination.
Environmental Protection Agency. According
PIATRA NEAMT Aer (7 Calistrat Hogas Street) is the ideal place
to the information available in the National
BUCHAREST
for daily shopping, with local products for
Waste Management Plan during the analysed
Zero Waste Store Bucuresti (20 Buzesti Street)
food, care, leisure, and socialising. They trace
period, the share of separate collection of
was the first such store to open in Bucharest
the source of all their products, and 80 per‑
municipal waste varied between 3.2 percent
.It’s a place where you can buy everything you
cent of them come from Romania. Vegetables,
and 5.3 percent. Both the National Regula‑
may need, from food to cosmetic products,
dairy products, vegan products, homemade
tory Authority for Community Public Utility
and you can also learn more about sustain‑
cakes, cleaning and care products, and beauty
Services and the National Environmental
ability and how to reduce waste there.
items are all part of the offer.
AER Piatra Neamt
Naked Sibiu
Vera Green Cluj Napoca
www.business-review.eu Business Review | June 2021
38 CITY
New in town
By Oana Vasiliu
With the pandemic slowly but surely coming under control, cultural operators have started to plan events based on the new scenarios provided by the authorities, which will come into play starting June 1. Let’s take a look at what’s happening in Bucharest this month. festival will be Combinatul Fondului Plastic, but events will also take place at the SENAT Gallery and UNA Galeria. RADAR will become a Temporary New Media Art Museum between June 10-13 at ROMAERO and will present a special centre piece – CORE – a Boeing 737 that’s been transformed into an immersive art installa‑ tion. RADAR (Romanian Artists Developing Alternative Realities) supports the local new media art scene by bringing together creative studios and independent artists to showcase their digital projects and augment the coun‑ try’s Cultural & Creative Industries.
Romanian Design Week
T
he Romanian government has de‑
LIVE CONCERTS RETURNING
cided to ease more of the restrictions
Not only is Gradina Urbana hosting concerts
introduced earlier in the context of
or live events almost every night, but a new
the COVID-19 pandemic. As of June 1, new
stage is opening in the backyard of Expirat
rules will apply for public and private events,
Club, where Romanian alternative bands have
indoor playgrounds and swimming pools, res‑
already booked gigs. You may also want to
taurants, and accommodation units.
check out the Mihai Eminescu Amphitheatre,
From June, the number of people who can take part in outdoor cultural, art, and enter‑
a summer garden that’s perfect for both the‑ atre and concerts.
tainment activities will increase from 500 to 1,000, but participants must show proof of
RESTAURANTS
vaccination or a negative COVID-19 test.
From June 1, indoor restaurants will be al‑
Several streets in central Bucharest will be
“They May Still Be Alive Today” directed by Tudor Cristian Jurgiu
lowed to operate at a 70 percent capacity, so
closed to traffic on weekends until October
you’ll have a better chance at getting a table
17, including Kiseleff Boulevard and Victoriei
at your favourite places. Furthermore, the
Avenue, between 11 AM and 11 PM.
ialoc app is launching a food festival offering discounts up to 50 percent if you book a seat
CINEMAS FINALLY OPENING
through the app.
After being closed for more than six months, all cinemas were able to reopen in the last
ARTS
weekend of May. Nomadland, Soul, Cruella,
Romanian Design Week (June 4-13) has a
Godzilla vs. Kong, Mortal Kombat, Fast & Fu‑
programme that will take place both online
rious 9, and Tom & Jerry were among the pre‑
and offline and gather organisations, design‑
mieres. Two Romanian films also premiered:
ers, initiatives, and events that will focus on
“They May Still Be Alive Today” / “Poate mai
the importance, success, and contribution of
traiesc si azi” directed by Tudor Cristian Jur‑
creative industries in society, especially in a
giu and “Luca” directed by Horatiu Malaele.
post-pandemic reality. The main venue of the
Gradina Urbana