USAID Enterprise Competitiveness Project

Speeches Shim

The project has generated 18,677 new jobs since August 2018
The project has generated 18,677 new jobs since August 2018
Olivier LeBlanc

USAID Enterprise Competitiveness Project works with small and medium businesses to increase their competitiveness, help them access new markets, and mobilize investments to create more jobs and increase incomes of Kyrgyzstani households.

Duration: August 15, 2018 – August 15, 2023

Funding level: $22.7 million

Implementing Partner: ACDI/VOCA

Key Partners: CrossBoundary, Village Capital, Nathan Associates

Activity Locations: Nationwide with a focus on Naryn, Osh, Jalal-Abad and Batken oblasts

MAJOR FOCUS AREAS

The project prioritizes regions with the highest levels of poverty and unemployment, including Batken, Jalal-Abad, Naryn, and Osh. It focuses on sectors that can grow faster and create more jobs, such as agriculture, apparel, manufacturing, education, and IT.

There are four main ways, the project helps to develop businesses:

  • By providing grants to businesses, to help them expand and access new markets.
  • By providing technical advice on management, organizational, financial, and marketing issues to improve human and social capital of small and medium businesses. The Project prioritizes support for enterprises owned or managed by women and youth.  
  • By establishing partnerships with financial institutions, such as banks and investment funds, to improve access to more affordable finance for small- and medium-sized enterprises with less emphasis on collateral.
  • By funding research, to identify problems that prevent businesses from growing and develop solutions to enable growth.

PROJECT RESULTS

  • The project partnered with 111 companies and co-invested in developing their businesses. With project support companies expanded their production and reached new markets. As a result, they generated 18,677 new jobs since August 2018. For example, a woman-owned apparel factory Muras in Osh created 160 jobs, mostly for women in southern Kyrgyzstan.
     
  • With project support 66 companies reached 525 new regional and international buyers. One of the examples is a local meat processor TORO LLC that equipped a blast freezing meat chamber with project support. This helped the company to preserve meat longer and export internationally by truck refrigerators. In 2021, TORO LLC signed contracts with international companies to export yak and lamb meat to the United Arab Emirates and Bahrain.
     
  • The project worked with Engels Farm, Tien Shan Mission Society and Eldan Atalyk processing company to establish stable soybean and corn supply chains. This helped to increase incomes of more than 3,000 farmer households who became suppliers. 
     
  • The project provides technical assistance to partner companies in obtaining international certification, which creates new export opportunities for Kyrgyzstani producers. For example, EcoFloris tea producer received HACCP certification, Advantex dried fruit manufacturer received ISO 22000:2018 international certification, and Uluk Agro Farm apple producer received Global GAP international certificate first time in the history of Kyrgyzstan.
     
  • 80 start-ups graduated from the Business Acceleration Program that helped them find ways to grow faster. Most of these businesses are owned or led by women and young people. 18 best participants received small grants up to $20,000 from USAID. Four companies received a blended investment type of funding.
  • 53 young professionals successfully completed internships at the project’s partner enterprises as part of the Youth Internship Program. 36 interns, including 25 women, received permanent jobs in the companies.
  • 1,566 enterprises received $44 million in funding from private financial institutions like Highland Capital, AV Frontiers, 996 Impact Circle, Accelerate Prosperity, Bakai Bank and Halyk Bank. The project worked with these institutions to arrange the new investments. USAID supported introduction of new financial products such as mezzanine and equity financing in Kyrgyzstan. They helped to expand access to investment opportunities for local businesses.
  • The project supported Bakai Bank in obtaining an international credit rating from Moody’s Investors Service, making it the only local bank in the country with such rating. This enabled the bank to attract a $7 million from a German investment fund in 2021 to provide more affordable financing to small and medium enterprises and support green economy initiatives.
  • The project helped microfinance institutions raise capital from international investors. For example, with project support Amanat Credit secured its first international funding of $1.6 million debt financing package from a Swiss impact investment firm. With this international funding Amanat Credit will provide more financing to Kyrgyzstani enterprises in rural regions.
  • The project supported introduction of innovative information systems in the Central Depository, the International Court of Arbitration, the Department of Public Procurement, and the Kyrgyz Stock Exchange. This helped to improve their services and increase transparency of operations.
  • With USAID support the Union of Banks of Kyrgyzstan launched a new digital financial platform FinMarket. Users of the platform will have 24-hour remote access to important financial services and products. The platform will improve interaction between businesses and the financial sector.
  • The project worked with the Government of the Kyrgyz Republic to improve policies and regulations that help businesses grow. For example, the project partnered with the Council for Business Development and Entrepreneurship to improve the administration of state social insurance contributions and the taxation. Many of the amendments that project worked on were approved.  While cooperating with JIA Business Association similar changes were introduced to the legislation on fire safety in construction allowing companies to obtain all permitting documents in much shorter period without excessive bureaucracy.

Women Economic Empowerment

  • The project focused its efforts on women’s economic empowerment. 51 women-led companies received direct grants from the project to expand their businesses and create new jobs.
  • With project support Halyk Bank developed a new loan product for women-owned and women-led enterprises with a lower interest rate and minimum collateral requirements. Halyk Bank financed 632 women-led companies that accessed financing for $12.8mln.
  • In 2021, the project started working with seven crisis centers to support their business initiatives and create jobs and economic opportunities for women that experienced gender-based violence.

Last updated: April 12, 2022

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