A new chapter for rural development in Kosovo: Investment Grant Scheme beneficiaries announced

Kosovo's rural economy is set for a boost, one that reaches beyond a single village or sector.

Event backdrops

In partnership with the Ministry of Agriculture, Forestry and Rural Development (MAFRD), the Official Ceremony for the Announcement of Beneficiaries under the small-scale Investment Grant Scheme "Support to Sustainable Development of the Agriculture Sector in Rural Areas through Diversification of Activities" took place.  

The ceremony brought together government representatives, development partners, beneficiaries, academia, and other stakeholders, marking a significant step in efforts to diversify rural livelihoods and strengthen the agriculture sector in Kosovo. 

A Scheme Built on Strong Demand 

The scale of interest in the Investment Grant Scheme speaks to a broader appetite for change in Kosovo's rural areas. Across all three scales of support, 1,334 applications were received, resulting in 642 beneficiaries selected: 556 under the small-scale scheme (from 915 applications), 65 under the medium-scale scheme (from 216 applications), and 21 under the large-scale scheme (from 203 applications).  

"The project brings Kosovo’s agricultural policy and institutions closer to European standards and the EU Common Agricultural Policy. It’s a further step forward for Kosovo towards the EU!" said Rainer Rudolph, Ambassador of the Federal Republic of Germany to Kosovo. 

For many applicants, the scheme represents more than funding. It is an opportunity to formalize small activities, expand production, and build businesses that can support a household or a whole community over the long term. 

Diversifying Rural Livelihoods 

The small-scale scheme supports investments across seven priority subsectors, giving rural households multiple paths to build income beyond traditional farming. Honey production leads the way, accounting for 57.3% of supported investments, a reflection of Kosovo's growing beekeeping tradition and its potential as an export-oriented subsector. On-farm processing of agricultural products follows at 20.7%, helping producers add value to raw goods rather than sell them unprocessed. Poultry production accounts for 10.8%, agrotourism for 5%, non-agricultural activities for 3.8%, and non-wood forest products for 2.3%. 

This mix matters. A rural economy built on a single crop or activity is vulnerable to bad seasons and shifting markets. By spreading support across beekeeping, processing, poultry, tourism, and forest products, the scheme helps rural households build income streams that can withstand shocks and open new markets. 

 Inclusion as a Core Principle 

Beyond the numbers, the scheme reflects a deliberate effort to reach groups that are often left out of rural investment. Across all three scales, 35.1% of beneficiaries are women, while 64.9% are men, and 9.7% belong to non-majority communities. 

" Inclusion is a core pillar of this initiative. More than one-third of the beneficiaries under the small-scale scheme are women, and the program actively includes members of diverse communities. " Emphasized Markus Delfs, GIZ Kosovo Country Director. 

For beneficiaries, the scheme is not an abstract policy but a concrete change in what is possible for their business. “I applied for this grant because producing five different types of vinegar with outdated equipment is time-consuming and physically demanding. With the new equipment, my work will be much easier, production will be more efficient, and I will be able to focus on growing my business " said Kadrije Mustafa Dodaj, small-scale scheme beneficiary. 

From Announcement to Implementation 

During the ceremony, small-scale scheme beneficiaries were officially informed about the next steps in the implementation process, including contractual procedures, beneficiary obligations, and project implementation requirements. Participants also received an overview of the overall grant scheme and how implementation will proceed in the coming months. 

The ceremony featured keynote addresses and remarks from representatives of the Government of Kosovo, the Embassy of the Federal Republic of Germany, GIZ, and academia, all reaffirming a shared commitment to strengthening rural development and creating sustainable economic opportunities across Kosovo. 

As the selected beneficiaries move from announcement to implementation, the scheme's real impact will be measured not only in the number of applications received, but in the businesses that grow, the jobs that are created, and the rural communities that become more resilient as a result. 

The Investment Grant Scheme is implemented by GIZ on behalf of the German Government, withco-financing fromMAFRD, as part of ongoing efforts to support Kosovo's rural economy through diversification and sustainable growth. Notably, this is the first time the Government of Kosovo is contributing financially to an initiative of this kind, a step that strengthens national ownership and supports its long-term sustainability.  

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