Promoting economic growth and innovation to create jobs

Project description

Title: Promotion of Growth and Employment in the Private Sector (PROGRES)
Commissioned by: German Federal Ministry for Economic Cooperation and Development (BMZ)
Country: Mongolia
Lead executing agency: Ministry of Economic Development (MED)
Overall term: 2021 to 2023

Context

Mongolia’s economy remains highly dependent on raw materials and is not sufficiently diversified – a situation that the government would like to change. Small and medium-sized enterprises (SMEs) in particular offer great potential to help achieve this goal. They already generate half of the country’s gross domestic product and provide around 80 per cent of jobs. They will, however, require considerable support to fully tap this potential

The project supports the Ministry of Economic Development (MED) in its efforts to improve economic development by establishing an investment-friendly business environment. It aims to promote the long-term economic growth of SMEs and thereby create jobs, especially in semi-urban regions.

Objective

Partner institutions are better able to promote inclusive and long-term growth for SMEs and start-ups. SMEs have more modern and efficient structures, offer better products and services, and employ more people.

Approach

The project operates nationally, and in Ulan Bator and two local focus regions. Its direct target groups are start-ups and SMEs. In cooperation with the NDA and other implementation partners, it strives to improve the economic framework, harmonise local and national development strategies, and establish a positive environment for investment.

Project activities centre on boosting the competitiveness and productivity of SMEs. Regional business hubs also help companies address new markets and customer groups.

With a sustainable operating concept, the business hubs will continue to offer their attractive portfolio of services after the project comes to an end.

Last update: March 2022