The GER Initiative Update
CHF International

SO1: PRIVATE SECTOR-LED ECONOMIC GROWTH
posted by Skip Waskin on Tuesday, December 13, 2005, 8:13PM

In November, the GER Initiative helped seventy seven businesses improve or expand, fifteen new startups were created, 182 people were matched to jobs, and 53 new job placements were generated.

Training and Consulting. GER provided 599 clients with consulting services and 341 clients with business training this month. Specialized vocational training sessions and consulting were held for restaurant owners, artisans, and carpenters. Thirty small restaurant/cafe clients participated in a two-day training session by French chef Francois Thuille. In addition to teaching eight new low-cost plates to the clients, he taught basic hygiene as required by the Professional Inspections Office regulations and then visited each restaurant for an individual consultation on the new dishes, the cleanliness of the restaurant, and the set-up of their kitchens. Some 33 artisans were also visited in Erdenet and Ulaanbaatar by Jackie Ross, a design expert. During the meetings the consultant advised on quality and design improvements for the clients’ products.

Financial Services. GER facilitated 114 loans in November worth $90,747, and 29 Capital Augmentation Fund (CAF) loans were disbursed worth $45,450. As of the end of November, 30 of the 870 outstanding facilitated loans in the portfolio are in arrears, and ten of 177 outstanding CAF loans in the portfolio are in arrears. There remain five defaults in facilitated loans, and none in the CAF loans.

Information. Some 429 people accessed information services from the project in November. The project finished collecting data for the third khashaa (ger land) valuation survey and is inputting the data from 1,330 evaluation forms. GER also finished a major video project in November, and 58 client videos and five ads about the project will start to be broadcast in December. GER staff will also begin to use three employment training videos this month. In Choibalsan, the Kherlen Soum Governor’s Office and GER organized a “Let’s improve our business successfully” day-long informational session. The Professional Inspections Office, the Tax Office, Public Utilities Office, Customs Office, private banks, the Heating Distribution Office and the SME producers office took questions from residents. Fifty clients particpated in the event, and received consulting, training, and information from both government officials and GER. In Darkhan, the Darkhan Food and Agriculture Department celebrated the Day of Agriculture Workers. GER was invited to participate and gave a speech about the project’s agribusinesses development activities. Other participants included the Head of Aimag Residents’ Representative Meeting, Governors of Darkhan, Orkhon and Khongor soums, the Norwegian Lutheran Mission, and successful agribusinesses.

Linkages. In November GER continued to expand its sales and input linkages with 10 sales linkages and over 40 input linkages. One new mining company was added, Entrée Gold, which purchased 50 uniforms. GER also added two service companies to its sales linkages: Mercury Group and Millie’s. Total sales linkages for all clients were over $7,100 for the month. Many input linkages to wholesale companies were also made in November, including MonFresh, Nuurs Coal Company and Vitafit. These introductions continue to result in favorable purchase prices and delivery terms for GER Initiative clients. The project organized two small artisan fairs in Ulaanbaatar for the President’s visit, and participated in the Star Apartment fair. Total sales were over $2,000 for 34 clients. In Choibalsan, six clients participated in a Day of Food Producers trade fair. Two GER clients, Delger bakery and Kheremkhen ice cream company, won an award for the best product of the trade fair. Three clients made total sales of $340.

Business Associations. GER has restarted the relationship between Darkhan Nekhii Factory and 12 women from the sewing groups in Darkhan. Last year, the Factory was not checking quality before purchasing the gloves and stopped purchasing due to poor quality without talking to the group. The quantity and price of the gloves are being discussed. Also in November, representative Council members of the Darkhan Uliasti Pig Farmers’ Association received training to clarify the organizational structure of the council, division of work responsibilities, and job descriptions. Eighteen Darkhan Noos Cooperative felt clients requested a CAF loan in November for purchasing wool at wholesale prices.

Employment Services. GER had a very strong month in employment matching, and 366 clients participated in employment and vocational training. In Erdenet, GER held a labor day fair with the Employment Office and 17 people were hired within three days. It also worked with the Erdenet Carpet company on hiring 21 employees; 28 potential employees were selected at the branch office after a three day trial. Twenty-one of these candidates will be chosen for 14 days of training and then given full time work. The Bridge Group hired 20 GER clients as finish carpenters and painters after they passed a training course; the course was sponsored by the Labor Fund, implemented by the Mongolian Builders Association Training Center, and organized by GER Initiative for Bridge Group. TheNomin Holding Company also held labor days with all seven branches in Ulaanbaatar and received many applications for employment. To date they have hired 20 people and are processing more applications. GER recently signed an agreement with a new cashmere company, Etso Foradori, to help train ger area clients on how to be employees. Other large companies that hired clients this month include MCS group, Ulemj Company, Admon printing and publishing, and Enigma Company.

Other. The GER Initiative opened its 15th branch office in Jargalant soum 20 kilometers outside of Erdenet in November, and Millennium Challenge Corporation representatives visited the Yarmag branch office.

The GER Initiative Update
CHF International

SO1: PRIVATE SECTOR-LED ECONOMIC GROWTH
posted by Skip Waskin on Friday, November 9, 2005, 8:07PM

October continued to be busy for GER, even as fall started to segue into winter. Fifty-three businesses were improved or expanded, 12 new startups were created, 116 people were matched to jobs, and 40 new job placements were generated.

Prime Minister Visits GER Initiative. Prime Minister Elbegdorj visited the Bayanhoshuu branch of the GER Initiative in October, and met with project management and project clients. GER clients had previously held a workshop on proposed changes to the tax laws, and they presented th Prime Minister with an itemized list of eight priority tax law changes affecting their businesses. The Prime Minister also took the opportunity to visit with other ger area residents to discuss infrastructure needs.

Borroo Gold Collaboration Strengthens. Borroo Gold expanded its collaboration with the GER Initiative in October. In an effort to expand the amount of goods and services procured from within Mongolia, the company hired additional GER clients to manufacture items for mining operations. CEO Paul Korpi also visited GER Initiative offices in October, and began discussions about the possibility of opening a GER Initiative office near the mine district.

Training. Some 453 clients participated in business training this month. Specialized training took place on a variety of topics, including savings and consumption; livestock slaughtering; and knitwear design trends.

Consulting. GER provided consulting services to 534 clients in October, 324 of whom were new clients. One, a cosmetics seller, implemented a bonus card system which increased sales income by 30%, increased the number of customers, and allowed them to create four new jobs.

Financial Services. GER facilitated or financed 78 loans in October worth over $106,000, and 38 Capital Augmentation Fund (CAF) loans were disbursed with a total value of over $40,000. This was the highest disbursement of CAF loans since inception of the CAF product. As of the end of October, 37 of 896 facilitated loans were in arrears, and ten of 166 CAF loans were in arrears. There have been only five defaults in facilitated loans, however, and none in the CAF loans.

Information. Some 396 people accessed information services from the project in October. The project was deep into its third khashaa (ger land) valuation survey, with over 1000 evaluation forms already gathered. GER also started a major video project in October. Fifty-eight client television commercial were recorded and will air in the coming months; three employment training videos were prepared that outline the success of employment matching clients; and 20 versions of GER Initiative commercials have been recorded and will be aired in the coming months.

Linkages. October saw 15 large business linkages made, including a number of a number of sales linkages to mining companies. Major Drilling purchased $4,971 worth of products from five clients that included sample bags and core trays; Boroo Gold purchased 375 work vests for $2,175 from three clients; and GER Clients also delivered 260 kg of pork to Borroo Gold. The Bayangol and Yarmag branches of GER held meetings among traders in October to introduce clients to wholesaler sellers. These introductions continue to result in favorable purchase prices and delivery terms for GER Initiative clients.

Employment Services. GER sponsored employment and vocational training for 135 individuals in October. A branch office in UB held a successful labor day fair, and the project began collaborating with the Center for Employment and Social Welfare in Choibalsan to arrange temporary public works employment for 13 ger area residents.

Business Associations. Of the 99 business associations formed by the project, 66 are considered successful because they have made a profitable transaction and 46 are considered active, sustainable associations. The Erdenet Yak hair rope group “Erchim” continued its solid sales performance in October, with sales of over $700. An auto repair group in Choibalsan took out a loan from the Employment Support Fund in October, and the project met with the director of the Darkhan Nekhii Factory to help arrange for client to sew gloves and slippers.

Other. In other GER Initiative news, a group in Choibalsan began an equipment survey in preparation for potential collaboration with Inner Mongolia equipment sellers, and a ”Great Mongol 800” crafts fair was held in October at which twenty GER clients participated.

The GER Initiative Update
CHF International

SO1: PRIVATE SECTOR-LED ECONOMIC GROWTH
posted by Skip Waskin on Friday, October 21, 2005, 3:57 AM

September is usually the start of a seasonal slowdown for GER Initiative clients, but this year it was as busy as previous months. Fifty-nine businesses were improved or expanded, 15 new startups were created, 183 people were matched to jobs, and 49 new job placements were generated.

Training. Some 351 clients participated in business training this month. Specialized training took place on a variety of agricultural topics, on business start-ups, and, in cooperation with GTZ, on training of judicial legal professionals. GER also organized a five day “Start Your Own Business” training program with the Choibalsan business incubator for eleven participants.

Consulting. GER provided consulting services to 454 clients in September. The most common consultancies were for obtaining a loan (35% of the total), marketing (20%), making linkages (10%), business analysis and planning (10%), and starting a business (6%).

Financial Services. GER facilitated or financed 104 loans worth $102,000 in September, and eleven Capital Augmentation Fund (CAF) loans were disbursed. As of September 30, there was a total of 896 outstanding loans, and there had been a grand total of only five defaults.

Information and Linkages. Some 324 people accessed information services from the project in September. GER also started its third annual hashaa survey to help document the value of ger area land; the project finished entering data on over 450 hashaas out of over 1,200 hashaas that were sold over the past year. The survey should be completed in November.

Linkages. September saw an increase in linkages by GER to the mining community, due partly to project participation in a major mining conference in Ulaanbaatar. GER clients are delivering pork, metal barrels, uniforms, boxes, bags and jam to companies such as Boroo Gold, Asia Gold, Major Drilling and Ivanhoe.

Employment Services. GER had established employment relationships with 33 large businesses as of the end of September. Some are only now finding employees through the project; some come to GER branch offices on certain days to recruit workers; and some participate in GER “labor days”. Roughly 50% of all employment matching activities are done through these 33 companies; 15% of the businesses are service based, 35% are traders and 50% are production based businesses.