Duration: August 15, 2018 – August 15, 2023

Funding level: $22.7 million

Implementing Partner: ACDI/VOCA

Key Partners: Enclude, Village Capital, Nathan Associates

Activity Locations: countrywide

The USAID Enterprise Competitiveness Project is a five-year initiative that increases the income levels of Kyrgyzstani households through the creation of jobs and livelihood opportunities among small and medium enterprises (SMEs). By accelerating an inclusive, market-led growth, the project increases Kyrgyzstani SME competitiveness, facilitates their access to markets, catalyzes investments, builds opportunities for women and youth, and improves the business environment.

MAJOR FOCUS AREAS

The USAID Enterprise Competitiveness Project works across the Kyrgyz Republic with a focus on regions with more poor and unemployed people. The project prioritizes sectors with the highest potential for growth, job creation, and inclusion of women and youth. These sectors include but are not limited to agriculture, manufacturing, tourism, and technology. 

The project partners with market leaders and successful enterprises to co-invest into the expansion of SME market access.  To improve human and social capital of SMEs, the project works with business service providers and business associations to support small enterprises and start-ups, especially those owned or managed by women and youth.

The project works with financial institutions (bank and non-bank) to improve SME access to growth-oriented capital. 

The project facilitates dialogues with agencies of the Government of the Kyrgyz Republic, business associations, and other institutions to promote policies favorable to growth of businesses. This allows partners to assess and address bottlenecks that prevent SMEs to increase trade, grow, join the formal economy, and access capital.

PROJECT RESULTS

• 8 companies committed to invest $1.2 million in business expansion that will generate $7 million in additional sales and 3,750 new jobs over the next four years.
• 7 companies selected for potential partnership that will result in $30 million in additional sales, 5,250 new jobs, and $4.4 million in capital investment.
• Generated 475 applications for partnerships from private companies;
• Agreements signed with Highland Capital, AV Frontiers, and Halyk Bank led to $23 million in financing options for 300 enterprises. This will create 1000 jobs in the next three years.
• Memoranda of Cooperation signed with two large companies, Eldan Atalyk and OJSC Bishkeksut, that will provide guaranteed sales for 1,100 farmers worth $8.8 million over the next four years.
• The Business Acceleration Program is charting a pathway for growth for women- and youth-led start-ups and early-stage companies. 55 SMEs in various sectors including IT are being trained under this program.
• The Project supports the Government of the Kyrgyz Republic in conducting studies and conferences, and developing workplans relating to private sector development, including the Private Sector Development Program 2019-2023 and the Investment Map, an online investment and trade promotion platform.

EXPECTED IMPACTS

• 40,000 households increase their incomes
• 19,000 new jobs
• SMEs’ sales increased by $39 million
• 130 SMEs access new markets
• 250 SMEs, of which 80 are women or youth-led, improve their managerial, technical, financial, and marketing capacities
• $17 million invested in SMEs by non-bank financial institutions
• $18 million in growth-oriented capital invested by financial institutions
• At least 250 SMEs access financing
• 20 SMEs obtain certificate of compliance to international standards
• 20 constraints to SME and trade growth addressed