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  • Kosovo: Rural Economic Sustainability Initiative (RESI)– KSV903

Kosovo: Rural Economic Sustainability Initiative (RESI)– KSV903

Project Description

A recent milestone of political development has been that Kosovo signed the Stabilisation and Association Agreement (SAA) with the EU in October 2015. Nevertheless bureaucracy, corruption and limited legal security remain one of the biggest problems of the country. The legal and political environment is thus characterized by weak institutional development in terms of service provision and applying principles of good governance. As for the macro-economic developments, despite a recent economic growth of around 3,5%(World Bank 2015) over the last years, poverty and unemployment rates, especially youth unemployment, remain high. Persistent high levels of trade deficit reflect a weak production structure, which is prevalent also in the agricultural sector. Although Kosovo’s agriculture contributes with some 14% to the country´s GDP, it is dominated by semi-subsistent farming and small holdings. The prevalence of these characteristics indicates that agriculture represents an important social safety net for many. Further challenges are outdated technologies  and  farm  management  practices,  weak rural and advisory infrastructure and  lack of access  to  credit  and  investments. Having these challenges in mind it is not surprising that Kosovo’s agro-food trade deficit has been widening.

Overall Objective

To contribute to a sustainable and inclusive rural economic development, as well as income and employment generation in the target municipalities Prishtinë/Priština, Novo Brdo/Novobërdë, Kamenicë/a and Ranil(l)ug.

Specific objective

Increased competitiveness of local farmers/producers/processors and new and inclusive rurally-based businesses strengthened/established as a result of an enabling and inclusive environment in the target municipalities.

Expected Results

ER1: The capacity of municipal support structures, Young Professionals and other development actors (NGOs, cooperatives, associations) is strengthened to provide effective and demand-driven services to agricultural producers and processors.

ER2: Grant scheme established and operational, supported grants sustainable beyond the project duration and municipal support structures actively engaged in the grant disbursement cycle to enhance ownership and knowledge transfer.

ER3: Women and socio-economically vulnerable groups in target municipalities involved into agri-businesses through targeted capacity development and funding scheme.

Target group/beneficiaries

The project will benefit at least 750 farmers (male and female), 15 young professionals, 20 public employees, 90 individuals from disadvantaged backgrounds (from which 50% women) and that consist mainly of small holder farmers, members of marginalized ethnic minorities, widows and female headed households. Given the comprehensive training component for the target municipalities, it is expected that at least 10.000 farmers will be indirectly reached via public agribusiness advisory services in the 4 municipalities. Indirect beneficiaries represent some 65.000 individuals from the targeted rural populations.

Duration

01.09.2016 – 31.12.2019

Budget

EUR 3.031.582,37

This project contributes to the following sustainable development goals (SDGs):