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ADVANCING KOSOVO TOGETHER Evidence on Linkages Created Between Majority and Non-Majority Business Associations, Including Strengthening Associations

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ADVANCING KOSOVO TOGETHER Evidence on Linkages Created Between Majority and Non-Majority Business Associations, Including Strengthening Associations ADVANCING KOSOVO TOGETHER Evidence on Linkages Created Between Majority and Non-majority Business Associations, Including Strengthening Associations April 6, 2017 This report was produced for review by the United States Agency for International Development. It was prepared by USAID Advancing Kosovo Together implemented by prime contractor Chemonics International, with input from subcontractors Development Professionals Inc., Business Support Center Kosovo, and the Berman Group. USAID ADVANCING KOSOVO TOGETHER Evidence on Linkages Created Between Majority and Non-majority Business Associations, Including Strengthening Associations Contract No.AID-167-C-14-00003 The author’s views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government. CONTENTS EXECUTIVE SUMMARY ............................................................................................. 5 ACTIVITIES AND ACHIEVEMENTS ........................................................................... 5 Work with Non-majority Associations to Encourage Membership and Link Members with Buyers ............................................................................................... 5 Establish or Strengthen Linkages between Associations, Particularly Minority- Majority Linkages ...................................................................................................... 7 Strengthen the Capacities of Associations ............................................................... 8 ACRONYMS AKT LS AKT Local Solution B2B Business to business COE Congress and Event Organization GOK Government of Kosovo IADK Initiative for Agricultural Development of Kosovo KCC Kosovo Chamber of Commerce MAFRD Ministry of Agriculture, Forestry, and Rural Development MNWE Multi-ethnic Network of Women Entrepreneurs WEF Women’s Economic Forum USAID US Agency for International Development EXECUTIVE SUMMARY The three year USAID Advancing Kosovo Together project (AKT), launched on April, 2014, supports the U.S. Government’s foreign policy objective of peace and stability in the Balkans. The project does this by supporting USAID’s Country Development Cooperation development objective of improved rule of law that meets citizens’ needs and intermediate results of improved integration of ethnic minorities into Kosovo society. AKT’s goal is to foster positive and constructive inter-ethnic cooperation between Kosovo’s majority and minority communities in addressing common problems of unemployment, social needs, and municipal services in 16 targeted municipalities throughout Kosovo. The project partnered directly with 16 Kosovo municipalities: six (6) Serb-majority municipalities in the south (Gračanica/Graçanicë, Klokot/Kllokot, Parteš/Partesh, Ranilug/Ranillug, Novo Brdo/Novobërdë, and Štrpce/Shtërpcë); four Serb-majority municipalities in northern Kosovo (North Mitrovica/ë, Leposavić/Leposaviq, Zubin Potok and Zvečan/Zveçan); and six (6) Albanian-majority municipalities (Obiliq/Obilić, Gjilan/Gnjilane, Istog/Istok, Klinë/Klina, Pejë/Peć and Vushtrri/Vučitrn). AKT pursues its goal through four Project Intermediate Results (PIRs) or objectives, listed below: 1. Improve autonomous, horizontal communication between a) Kosovo Albanian and non-majority communities; and b) GoK and non-majority communities; 2. Improve economic opportunities in target municipalities; 3. Increase the efficiency and capacity of target municipal administrations to respond to the needs of all their citizens; 4. Build the capacity of host organizations by leveraging local, cross-ethnic leadership to implement USAID Kosovo funded activities. Business associations are meaningful market actors. Effective associations serve to promote the business interests of their members, provide members with opportunities to share information and resources, expand member businesses’ networks, and serve as a social venue where community divisions exist. AKT’s work with associations was threefold: 1. Work with non-majority associations to encourage membership and link members with buyers 2. Establish or strengthen linkages between associations, particularly majority-minority linkages 3. Strengthen the capacities of associations This report highlights the activities and achievements of the AKT project accordingly. ACTIVITIES AND ACHIEVEMENTS Work with Non-majority Associations to Encourage Membership and Link Members with Buyers AKT supported 24 business linkage events with 394 business participants. For the purpose of supporting non-majority associations to increase their membership and establish and expand members’ linkages to new buyers, AKT organized and facilitated the participation of non- majority associations in Kosovo in business-to-business (B2B) events and trade fairs as follows. B2B meeting facilitated by AKT grantee Business Support Center Štrpce/Shtërpcë. The event brought together producers from the partner municipalities of Štrpce/Shtërpcë, Klokot/Kllokot, Parteš/Partesh, and Ranilug/Ranillug, and buyers and distributors from other parts of Kosovo. In total, there were 16 non-majority businesses and five associations from these municipalities, and another five larger buyers and distributors (four Albanians and one Serbian buyer/distributor). B2B meeting between the vegetable producers’ association from Mogila/Mogilla (Klokot/Kllokot) and ABI Progress, Prizren. Both parties discussed the identification of production capacities and varieties, price and payment issues, and cooperation between producers and the processing company. Fresh champignons (mushrooms) were identified as a starting point of collaboration and ABI was prepared to buy all second and third class vegetable varieties for processing. A second meeting was organized between the two parties to finalize the details of the agreement. ABI agreed to buy 1,000 kilograms of mushrooms and peppers preserved in barrels during the harvesting season. After the test purchase, ABI agreed to sign a contract with the association for purchasing up to 10,000kg of mushrooms per month. B2B meeting between the vegetable producers’ association from Mogila/Mogilla (Klokot/Kllokot) and JEGE. AKT supported the vegetable producers’ association from Mogila/Mogilla (Klokot/Kllokot) to meet with the food processing firm JEGE. JEGE primarily produces pickled cucumbers, pickled peppers, and mushrooms and expressed interest in buying these items from Mogila/Mogilla producers. While no deal was struck at the event, the vegetable producers’ association has established the connection with JEGE and is aware of its standards in case of future negotiation. Agro-Industrial and Inverse Trade Fair. AKT supported seven partner businesses and associations from non-majority communities to participate in the Agro-Industrial and Inverse Trade Fair in Pristina from September 30 to October 3, 2015. AKT facilitated nine B2B meetings and three verbal partnerships were established between AKT’s non- majority businesses and majority businesses present at the fair. AgroKos Fair. AKT supported three non-majority partner associations and four non- majority partner businesses to exhibit and participate at the AgroKos Fair in Pristina in October 2015. The four-day event was an Agribusiness, Food, Drink and Gastronomy Fair organized annually by the Congress and Event Organization (CEO). AKT Prime supported exhibitions for the following non-majority associations: o Association of Raspberry Producers Šarska Malina (70 members, Štrpce/Shtërpcë) o Association of Beekeeping Producers Šarski Roj (43 members, Štrpce/Shtërpcë) o Association of Raspberry Producers Sušice (eight members, Štrpce/Shtërpcë) Over the course of the Fair, each exhibitor met with an average of over 100 visitors. AKT partner businesses established 53 new contacts and seven leads for new linkages. Agriculture and Agribusiness Fair. To ensure the interaction of minority and majority businesses and identification of potential partnerships, during September 28 – October 1, 2016, AKT brought eight partner businesses and three business associations to the Agriculture and Agribusiness Fair in Pristina, organized by the Kosovo Chamber of Commerce (KCC) and the Ministry of Agriculture, Forestry, and Rural Development (MAFRD). The aim of participation of minority partner businesses at this event was establishing new relationships with businesses from majority community and generating new sales. The fair is organized annually in a 6000m² space, with local and regional businesses participating. The following business associations were supported by AKT: o Association of Raspberry Producers Šarska Malina (70 members, Štrpce/Shtërpcë) o Association of Beekeeping Producers Šarski Roj (43 members, Štrpce/Shtërpcë) o Association of Raspberry Producers Sušice (eight members, Štrpce/Shtërpcë) o Multiethnic Network of Women Entrepreneurs (25 members, Severna Mitrovica/Mitrovica e Veriut), and ten of its member businesses. Establish or Strengthen Linkages between Associations, Particularly Minority-Majority Linkages Registration and membership of non-majority associations and businesses in Kosovo Chamber of Commerce (KCC). AKT facilitated the membership of 39 minority-owned partner businesses and 5 minority business associations at the Kosovo Chamber of Commerce (KCC), including businesses from Štrpce/Shtërpcë, Gračanica/Graçanicë, Zvečan/Zveçan, Leposavić/Leposaviq, Parteš/Partesh and Klokot/Kllokot. All members have received certificates of membership. Through
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