USAID/Mongolia :: Programs

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Contact the Mission

USAID/Mongolia
P.O. Box 1021
Ulaanbaatar-13
MONGOLIA
Phone: 976-11-312390
Fax: 976-11-310440
Email the Mission

November 2008

Gobi Regional Economic Growth Initiative (GI)

Mercy Corps

www.mercycorps.org.mn

Sales

The Gobi Initiative 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 November 2008 reached $276,071, bringing total sales so far for herder businesses in CY2008 to $1,706,866 and for non-herder businesses to $1,809,067. Total sales for CY2008 are now $3,515,933; nearing the full calendar year target of $3.9 million and up 21% over the same period in CY2007 (from $2,898,649). Average sales per business are also up 20% (to $12,666,093 from $10,573,687) over the same period in CY2007.

Total sales generated by business clients under the Gobi Initiative from January 2004 to date amount to $12.9 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 out by Gobi Initiative clients in November because of a major tightening of credit by the Mongolian Central Bank to the banks which have historically on-lent to Gobi Initiative clients. In total, 193 loans were accessed across the year. In total, these were worth $568,848 at an average loan size of $2,947. Mercy Corps provided a total of $220,025 as additional cash collateral for these loans, representing a 39% collateral guarantee against the average loan. This is significantly down over the 84% average at the start of the program in June 2004. Since the program began, 744 loans have been disbursed with a total value of $2.01 million. The repayment rate to date stands at 97.8%.

BDS providers

A training on business plan development, monitoring and evaluation was organized for consultants from local Business Development Service (BDS) organizations on 13-16 November 2008 in Ulaanbaatar. The main goal of the training was to prepare trainers to assist rural clients in developing business plans. A total of 21 people from seven BDS providers in Gobi aimags participated in the training. This year BDS providers will select their own clients and assist them to develop and implement the business plans.

Visit to Govi-Sumber

Eric Trachtenberg, Director of USDA’s Agricultural Trade Office at the U.S. Embassy in Beijing, China, traveled to Govi-Sumber aimag in November. He was accompanied by Mercy Corps Mongolia Country Director Dominic Graham and other Mercy Corps staff. Mr. Trachtenberg visited local Gobi Initiative clients including "Ih Uul" and "Zaraagiin Gashuun" cooperatives which are engaged in meat, fodder and dairy production and processing. They also met with the Aimag Governor Bayanmunkh. The Governor highly praised the results of the Gobi Initiative activities over the past several years.

Future events

In December Mercy Corps Mongolia will organize a planning meeting for the next year. All Mercy Corps staff will participate. The participants are expected to review the major results of this year and discuss key program activities for 2009.