Sustainable Economic Development: ph. 02


In the southern provinces of Kyrgyzstan, many households are still excluded from economic activities and depend on remittances. The current Covid-19 pandemic further weakens these families. The project will improve the quality of agricultural products and develop new market opportunities to increase the resilience of target groups. Best practices from phase 1 will be scaled up to other regions.

Country/region Topic Period Budget
Kyrgyzstan
Employment & economic development
SME development
01.03.2021 - 28.02.2023
CHF  2’115’000
Background Agriculture is still considered the key source of income for many rural households. Due to low productivity and small-size farming, agriculture contributes little to their economic well-being. Farmers and entrepreneurs face similar challenges: poor roads and infrastructures, outdated legislation, absent knowledge on the implications of climate change and possible solutions, limited access to finance and other public or private services. They struggle to compete in domestic and international markets due to lack of efficiency in production and processing, modern technologies and investment.
Objectives Long-term employment and better income opportunities have been created in Kyrgyzstan in the context of sustainable economic development for men and women and for all population groups, especially young people, and including people with disabilities and members of ethnic minorities.
Target groups

1,500 local producers and entrepreneurs in the promoted value chains and export sectors and their employees with fair representation of all ethnic groups and vulnerable population, such as youth and women.

Local cooperatives, business associations, lead firms and advisory service providers.

Municipal, district and province administrations and councils.

Medium-term outcomes

SDC Contribution to the ongoing GIZ Programme co-financed by BMZ will focus on improving competitiveness of local producers and entrepreneurs by ensuring the availability of agri-business enabling market systems in selected value chains in southern regions with 2 outcomes:

1. Local producers and entrepreneurs from the projects’ regions are increasingly competitive in the local and/or regional and/or global markets;

and

2. Inclusive and enabling agri-business market systems (regulatory and services) in the selected value chains in the project regions are available.

Results

Expected results:  

 

1) Members of formal and/or informal organisations/networks structures in the project regions have increased their operational efficiency.

2) Quality and safety standards are applied by local producers and entrepreneurs.

3) Intra-regional and inner-regional dialogue platforms between the public and private sector are operational.

4) Demand-driven value chain related services are permanently accessible in the project regions.

5) The financial services required to produce, process and market fruits and vegetables are permanently available to local producers and entrepreneurs.


Results from previous phases:  

During phase I, thanks to Swiss contribution in Jalal Abad province in the early vegetable and plum value chains:

• 966 jobs were created (mainly seasonal); 597 agricultural producers have substantially increased their income; 136 micro, small and medium enterprises have increased their revenue by at least 30%

• Profitable business for service brigades put in place;

• Internal control systems put in place;

• Marketing and standard requirements introduced for exporting to the neighbouring countries and Europe.

• 85% of the food processing MSMEs now fulfil food safety requirements;

• In the plum value chain, a traceability system was successfully used for production and marketing the plums.

• Local producers were certified with ISO22000:2005.


Directorate/federal office responsible SDC
Project partners Contract partner
Private sector
  • Foreign private sector North


Other partners
Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH
Coordination with other projects and actors

Swiss-funded: Bai Alai Project (Helvetas and AKF), Voice and Accountability(DPI) and Public Service Improvement Project (Helvetas/DPI). Small Business Initiative Programme (EBRD), Financial Inclusion (IFC).

AKF subsidiaries First MicroFinance Company and the Accelerator for Prosperity).

EU-BMZ co-funded: Integrated Rural Development Project

Budget Current phase Swiss budget CHF    2’115’000 Swiss disbursement to date CHF    1’050’000
Project phases Phase 2 01.03.2021 - 28.02.2023   (Current phase) Phase 1 01.06.2015 - 28.02.2021   (Completed)