Gobi Regional Economic Growth Initiative (GI)
Mercy Corps
www.mercycorps.org.mn
Sales
The GI uses sales generated from new business activities outlined in the formal business plans developed by its clients as an indicator of success. Total sales for herder and non-herder businesses for October 2008 reached $310,658, bringing total sales so far for herder businesses in CY2008 to $1,536,347 and for non-herder businesses to $1,591,062. Total sales for CY2008 are now $3,127,409, nearing the full calendar year target of $3.9 million and up 22% over the same period in CY2007 (from $2,573,165). Average sales per business are also up 20% (to $9,712 from $8,092) over the same period in CY2007.
Total sales generated by business clients under the Gobi Initiative from January 2004 to date are $11.9 million, which compares favorably with USAID funding for the Gobi Initiative cooperative agreement to date, less sub-grant agreements, of $5.8 million.
Loans
No loans were taken by GI clients in October. In total 193 were accessed across the year. In total these were worth $568,848 with an average loan size of $2,947. Mercy Corps provided $220,025 as additional cash collateral for these loans, representing a 39% collateral guarantee against the average loan. This is significantly down from the 84% average at the start of the program in mid 2004. Since the program began, 744 loans have been dispersed with a total value of $2.01 million. The repayment rate to date is 97.8%.
BDS providers
Five selected BDS providers will now start handling MNT 266.9 million ($250,000) in loans disseminated to 104 clients. To strengthen the capacity of aimag-based Business Development Service providers (BDSPs) and move them toward sustainable service delivery beyond the life of the Gobi Initiative project, Mercy Corps has now transferred responsibility for provision of almost all technical assistance, loan and equipment facilitation to these BDS providers, one in each of the five Gobi aimags. The BDS providers have now started promoting their new activities and will select clients to work with in 2009, assisting them in development and implementation of business plans and facilitating loans. Under the USDA-funded RASP, Mercy Corps will continue delivering training and capacity building for BDS providers and will work with them to market their services and to enable them to continue adding value to local businesses.
Fall Green Days in Ulaanbaatar
The Munh Nogoon Mandal cooperative from Uvurhangai Aimag, Goviin Urgats partnership and Gazriin Uguuj Hurimt cooperative from Govi-Altai Aimag, Sumshig cooperative from Bayanhongor Aimag, and Tevshiin Hajuu Us partnership from Govi-Sumber Aimag all participated in the Fall Green Days trade fair held in Ulaanbaatar on October 1-7. Their combined sales at the event reached about $9,565. GI clients displayed a variety of locally made products including vegetables, barley flour, eight types of animal fodder, camel milk, pickled wild onions and handicrafts. The Munh Nogoon Mandal cooperative from Uvurhangai Aimag received a special prize for their vegetables from the fair organizers. As a result of this fair, one of the biggest companies in Mongolia, Gazriin Shim, has pledged to set up a medium size irrigation system with the capacity to irrigate 25 hectares, and to build a greenhouse together with the Gazriin Uguuj Hurimt company in Govi-Altai Aimag.
Gobi Initiative close-out event
On Oct. 31 GI organized an event in Ulaanbaatar marking the end of the 10-year program. All program staff from the aimags and UB attended the event in Ulaanbaatar to talk about the program's accomplishments and successes and to discuss future directions. It was the last event at which all GI staff members came together as a team.
Gobi Forage
Discussions continue with the World Bank-funded Sustainable Livelihoods Project (II) for scaled-up funding to make Gobi Forage a national, and likely public, good. A conference of agencies with an interest in pastureland management was convened on October 27; the Gobi Forage technology was presented, generating interest from several government agencies and other donor-funded programs.
Rural Business News magazine
Media for Business is no longer a sub-grantee of either Mercy Corps or Pact since the end of August 2008, and no USAID funding has been made available to them since that time. Media for Business started full and independent operations in September 2008. Nevertheless, Media for Business will continue delivering RBN products including magazines, radio and television broadcasts into the future beyond the life of GI.
Future events
In the middle of November, representatives of eight BDS providers will receive training on business plan development. Twenty local consultants are also expected to attend business plan training in Ulaanbaatar and to improve their skills in writing--and assisting others to write--business plans alongside more generic adult learning methodologies. |
