Enhancing economic development in Kosovo through business support and investments for MSMEs

Context

Kosovo, as the youngest state in Europe, faces a number of economic challenges, including unemployment, poverty and corruption. Economic growth in Kosovo relies heavily on public investment and remittances. Therefore, fostering a vibrant private sector is imperative to enhance economic growth, mitigate poverty and generate employment opportunities. Significant efforts are being made to improve sustainable rural economic development by diversifying activities in rural areas, with a focus on mountainous and border regions. This includes promoting rural development through business development and farm-diversification measures. Here the focus is placed on rural and eco-tourism, traditional crafts, on-farm processing, renewable energy production, fostering biodiversity and marketing.

Objective

In Kosovo, the competitiveness of micro-, small and medium-sized enterprises (MSMEs) in business fields with a high employment potential is improved.

Approach

The focus of the project lies on:

• Consolidating support structures for the private sector by developing the capabilities of business membership organisations in the agricultural sector
• Improving and further development of business development services offered to MSMEs by business membership organisations 
• Enhancing government instruments for economic development
• Supporting MSMEs in rural areas through an investment grant scheme, with a focus on mountainous and border regions

Models of service delivery:

• Providing technical advisory services
• Providing internal and external expertise
• Supporting public-private dialogue
• Implementing an investment grant fund.

Within the project activities gender equality, youth integration and digitalisation are cross-cutting topics.

Last update: September 2024