Gobi Regional Economic Growth Initiative (GI)

Mercy Corps
www.mercycorps.org.mn

Sales

Compared with the same period in CY2007, total sales have increased 22% (up from $1,768,643) and average sales per business is up 20% (to $6,680 from $5,562 last year). Total sales generated by business clients under the Gobi Initiative from January 2004 to date is $11.0 million which compares favorably with USAID funding for the Gobi Initiative cooperative agreement to date, less sub-grant agreements, of $5.6 million.

Loans

In August, herder and non-herder clients took out two loans from commercial banks with a total value of $6,061 for which Mercy Corps provided $2,165 (36%) in additional cash collateral. A total of 181 loans were accessed by Gobi Initiative clients in the first seven months of the year. These loans were worth $538,247 in total with an average loan size of $2,947.

Mercy Corps has thus far provided a total of $209,008 as additional cash collateral through CY2008. This represents 39% collateral guarantee against the average loan— significantly down from the 84% average at the start of the project in June 2004. Since GI began, 732 loans have been disbursed with a total value of $1.98 million. The repayment rate to date stands at 96%.

Client Monitoring

In August Gobi Initiative staff based in the aimags and Ulaanbaatar conducted monitoring trips to six aimags. In total, 147 clients (45% of all clients) were visited during these trips. This is the second wave of monitoring trips—the first being in March. The main goal of these monitoring trips is to verify the extent to which Gobi Initiative clients are implementing their business plans and have received all technical assistance and production inputs, and to discuss any obstacles or other challenges that clients face and to help them address those problems.

BDS Providers

Mercy Corps organized a capacity building training for aimag-based Business Development Service (BDS) providers in Ulaanbaatar. Fifty-five participants attended the training event including eight managers from BDS providers cooperating with the project. The training covered topics including BDS management, marketing, strategic planning, gender issues and productivity.

During the training a new procedure for transferring more Loan Guarantee Mechanism (LGM) responsibilities to local BDS providers was introduced to participants. Some organizations were interested in continuing to work with the LGM program because it helps them strengthen their capacity and has become well known and popular among local businesses. Interested BDS providers are now negotiating with Mercy Corps and will enter into agreements from September 1 that will enable them to deliver loan guarantee services locally with assistance and oversight from Mercy Corps aimag offices.

Quarantine Implementation and Compliance Campaign

Mercy Corps organized a press conference to launch its "Implementation and Compliance with Quarantine Regimes" campaign at Mongol News on August 20. The press conference was attended by Mercy Corps Country Director Dominic Graham, the National Emergency Management Agency's (NEMA) Disaster Response Department Colonel Ch. Batchuluun, Mercy Corps program officer Oyunbileg and consultant Bayasgalan. Information on the campaign was shared with the representatives of more than 10 media organizations and the event was televized on national news the same day. The campaign aims to raise awareness and disseminate information on implementation and observation of quarantine regulations to a wide range of people through print and broadcast media across the 11 aimags where Mercy Corps operates the Gobi Intiative and USDA-funded RASP program and to 1,200 specialists from six professional organisations. It is expected that the campaign message will reach almost all related professional organisations, 70% of specialists and 40% of the general public in those aimags.

Rural Business News (RBN) Magazine

Media for Business (MFB) and Mongolian National Public Radio have signed an agreement securing free broadcast rights for 30-minute RBN radio programs every Wednesday at 0730 hours. The program is repeated in the evening at 2140 hours. The contract is effective for one year. The European Union-funded Animal Health and Livestock Marketing Project is now concluding a service agreement to work with MFB to continue the Market Information System first developed with USAID funding. Under the agreement, the EU project will fund collection and dissemination of market price information in six aimags, including Ulaanbaatar.

Future events

In September, six aimag market day events will be organized. The main goal of the events is to help local businesses to expand their client base, establish market linkages, and increase their sales income.