Context
Kosovo experiences deep-rooted economic difficulties, including high unemployment, widespread poverty, and limited competitiveness among its private businesses. Additionally rural, mountainous and border areas endure slow economic growth and remain heavily reliant on remittances and government support. These disparities result in uneven income opportunities across regions, particularly affecting farm and non-farm livelihoods.
Objective
The Government of Kosovo has made steady progress in implementing its national strategy for rural and economic development.
Approach
The measures, co-financed by the Kosovo Ministry of Agriculture, Forestry and Rural Development (MAFRD), focus on promoting rural economic development through diversifying activities. They aim to accelerate employment, improve farm resilience, and generate fairer economic returns in Kosovo’s less-favoured areas. The approach covers:
• Providing policy and institutional support to MAFRD and other public institutions to design and implement European Union-aligned grant schemes for farm diversification and rural business growth.
• Enhancing skills and knowledge for farmers, small and medium sized enterprises, and rural households in areas such as innovative agricultural practices, eco- and agri-tourism, energy efficiency, and biodiversity protection.
• Delivering an Investment Grant Scheme with tailored lots for farmers and micro-, small and medium-sized enterprises to promote on- and off-farm diversification, with cross-cutting priorities including gender equality, youth inclusion, digitalisation, and environmental care.