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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

December 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 December 2008 reached $239,090, bringing total sales so far for herder businesses in CY2008 to $1,819,310 and for non-herder businesses to $2,016,586. Total sales for CY2008 are now $3,835,896; nearing the full calendar year target of $3.9 million and up 22% on the same period in CY2007 (from $3,148,295). Average sales per business are also up 20% (to $11,913 from $9,900) compared to the same period in CY2007.

Total sales generated by business clients under the Gobi Initiative from January 2004 to date are $13.2 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 Gobi Initiative clients in December. 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 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 on the 84% average at the start of the program in June 2004. Since the program began, 744 loans have been dispersed with a total value of $2.01 million. The repayment rate to date stands at 97.8%.

Training for Young Businessmen

During the reporting period, four Business Development Service Providers (BDSP) in Bayanhongor, Uvurhangai, Dundgovi, and Umnugovi aimags organized first phase of Young Business Training. A total of 176 young businesses are willing to start new or expand their existing businesses applied for the training. A total of 65 young businesses were selected to participate. Participants improved their business knowledge on marketing, management, cooperation, finance, and tax issues. In training phase Two, they will be divided into groups differing by their production type and will receive sector specific and business plan training. All these businesses will become clients of BDS providers and will learn to develop their own business plans. Mercy Corps will provide a subsidy for the business plans developed by the clients who participated in the young business training.

Tourism Development in Umnugovi Aimag

A workshop was held in Umnogobi Aimag on 17 and 18 December with the aim of supporting the development of tourism at the aimag level. The workshop is part of a project developed by Mercy Corps with a Mongolian NGO, the Sustainable Tourism Development Centre, and with the collaboration of the Ministry of Nature, Environment & Tourism; the Agency for Standardization and Metrology; and the Chamber of Commerce, and was attended by 40 representatives from tourism businesses, local NGOs, and aimag and protected area officials. The participants agreed to work together to form an aimag tourism board which would develop a strategy for the aimag, raise industry standards and competitiveness, and improve marketing links with tour operators.