MACEDONIA BUSINESS ECOSYSTEM PROJECT Quarterly Progress Report October 1, 2018 – December 2018 (Q1 FY2019)
AID-165-C-17-00001 Chief of Party: Mirjana Makedonska Email: Telephone:
CONTENTS
INDEX OF COMMON ACRONYMS AND ABBREVIATIONS 2
PROJECT BACKGROUND 3
OVERVIEW 3
OBJECTIVE 1: IMPROVED BSO SERVICES TO MSMES 6 OVERVIEW 6 NEW BSO’S SELECTION 6 PRE-AWARD PROCESS 7 STRENGTHEN INTERNAL CAPACITY AND SUSTAINABILTY OF BSOS 7 IMPLEMENTATION OF GRANTS AND TECHNICAL ASSISTANCE TO BSOS 8 INTRODUCED NEW OR UPGRADED EXISTING SERVICES BY THE BSO’S 8 BEP LOCAL PARTNER CAPACITY BUILDING 12 FACILITATE INTER-BSO NETWORKING AND PARTNERSHIPS 12
OBJECTIVE 2: IMPROVED MSMES’ ACCESS TO FINANCING 13 OVERVIEW 13 SUPPORT MSME’S TO IMPROVE THEIR FINANCIAL LITERACY, MANAGEMENT AND ACCESS TO FINANCE 14 DEVELOPING NEW OR DIVERSIFYING ALTERNATIVE SOURCES OF FINANCING FOR MSMES AND STARTUPS 15 RAISING AWARENESS FOR ALTERNATIVE FINANCE SOURCES 17
OBJECTIVE 3: INCREASING PRIVATE SECTOR ENGAGEMENT 18 OVERVIEW 18 INCREASE PRIVATE SECTOR INVESTMENT IN ECONOMIC DEVELOPMENT ACTIVITIES 19
CLA: COLLABORATION WITH DEVELOPMENT PARTNERS, LESSONS LEARNED AND ADAPTING THE PROJECT’S FOCUS 25
MONITORING, LEARNING AND EVALUATION 27 OVERVIEW 27 CLA PRESENTATION AT USAID ECONOMIC GROWTH PARTNERS’ MEETING 27 FINDINGS FROM THE EVALUATION OF BEP EVENTS 27 ANNUAL RESULTS REPORT SUBMITTED TO USAID 28 FOLLOW-UP EVALUATION OF STUDENTS ENGAGED IN RADE KONCHAR TEP INTERVENTION 28 DATA QUALITY ASSESSMENT MEETING WITH USAID MACEDONIA REPRESENTATIVES 29 MEETINGS ON M&E ISSUES WITH GRANTEES 29
OPERATIONS AND ADMINISTRATION 30 COMPLIANCE AND USAID APPROVALS 30 COMPLIANCE WITH MACEDONIAN LAWS & PALLADIUM POLICIES & PROCEDURES 30
ACTIVITIES IN THE NEXT QUARTER 32 EVENTS 32 ACTIVITIES 32
ANNEX 1: BEP PERFORMANCE DATA TABLE (JULY – SEPTEMBER 2018) 33 NARRATIVE EXPLANATION OF THE REPORTED DATA 37
ANNEX II: FINDINGS FROM THE EVALUATION OF BEP EVENTS 44
ANNEX III: FINANCIAL REPORT 46
ANNEX III: CALENDAR OF ACTIVITIES 47
INDEX OF COMMON ACRONYMS AND ABBREVIATIONS A2F – Access to Finance B2B – Business to Business BEP – Business Ecosystem Project BSO – Business Support Organization CLA – Collaboration, Learning and Adaptation (or Collaborate, Learn, Adapt) CM – Concurrence Memo CoP – Chief of Party COR – Contracting Officer Representative CSR – Corporate Social Responsibility DCoP – Deputy Chief of Party FF – Financial Facilitator FI – Financial Institution GUC – Grants Under Contract LED – Local Economic Development LoI – Letter of Interest LS – Local Subcontractor MAFWE- Ministry of Agriculture, Forestry and Water Economy M&E – Monitoring and Evaluation MEL – Monitoring, Evaluation and Learning MoU – Memorandum of Understanding MLS – Ministry of Local Self-Governance MSME – Micro, Small and Medium Enterprise O1 – BEP Objective 1 O2 – BEP Objective 2 O3 – BEP Objective 3 PSE – Private Sector Engagement RfA – Request for Applications RfQ – Request for Quotes
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PROJECT BACKGROUND The USAID/Macedonia Business Ecosystem Project (BEP) is a four-year economic development project that will transform the competitiveness of micro, small, and medium enterprises (MSMEs) in Macedonia by strengthening business services, finance, and market linkages to catalyze a significant increase in MSME growth, productivity, and employment. The Project, implemented by Palladium International, officially started operating on September 29, 2017 and is set to conclude in September 2021. BEP has three overarching and interlinked objectives:
1. IMPROVED BUSINESS SUPPORT ORGANIZATION (BSO) SERVICES TO MSMES. Through a mix of grants and technical assistance, BEP will strengthen BSOs to provide services for MSMEs and startups tailored to meet their most pressing constraints to growth— increasing productivity and job creation by introducing new technologies, innovations, standards, and business practices; facilitating relationships with new clients or markets; and building their technical and business skills.
2. IMPROVED MSMES’ ACCESS TO SOURCES OF FINANCING. BEP will work with traditional and alternative financial instruments and with MSMEs to ensure appropriate sources of financing are available and accessible for business expansion efforts.
3. LEAD FIRMS INVEST IN THE DEVELOPMENT OF SUPPLY CHAINS AND LABOR FORCES. BEP will catalyze lead firms to invest backward in their supply chains, helping suppliers meet standards, improve quality, and introduce new technologies and know-how, ultimately demonstrating the mutual advantages of investing in these areas.
BEP will bring transformative, sustainable change to Macedonia’s business ecosystem at scale within its four-year life of project, paving the way for Macedonia’s market system to continue to function without USAID after BEP has concluded. To that end, BEP will achieve the following results:
• 15% average annual growth rate for MSMEs, resulting in $81.5M in MSME revenue growth; • Create 5,750 new jobs; • Provide access to alternative and traditional financing for 250 MSMEs; • Facilitate $138 million in financing (investment and credit) for MSMEs and startups; • Leverage $70 million from lead firm and private sector partners in support of project activities.
OVERVIEW BEP’s three objective areas address key facets of the business ecosystem in Macedonia and are naturally interconnected and mutually reinforcing. In the first quarter of Year 2, the implementation of BEP activities embodied this integration even more profoundly, with all three project objectives contributing to maximize impact in the selected sectors. As envisioned at the design stage, the three separate objectives have activities that complement each other and contribute to overall systemic progress. For example, in order to enhance the startup ecosystem and support access to finance (A2F) for startups, the Project initially looked at the sector through the lens of O2. Soon it became evident that the startup ecosystem needed broader support, rather than one-off A2F activities. With this realization, BEP began identifying relevant BSOs that could be considered for a grant under O1 in order to jointly work on enhancing the startup ecosystem, in addition to the A2F activities in O2. Another example is the dairy sector, initially a focus for BEP’s PSE initiative in O3, but now also supported with targeted access to funding through O2 and building advisory services and expertise through an O1 grantee (LAG Agro Lider). Similarly, BEP has seized upon the opportunity to support
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our O3 pilot in the apparel sector with a grant from O1 for the textile cluster (TTA) to develop a new service for its existing and potential members. The overlap of the three objectives, that became quite evident in Q1 of Y2, only proves the initial theory during project design that in order to build an efficient and effective business ecosystem all stakeholders and aspects need to be considered—BSOs, business development and access to finance, and the private sector—in order to achieve long-lasting results and catalytic impact in the targeted sectors.
This quarter, under Objective 1, BEP continued assisting selected BSO’s with the implementation of their grant activities to develop commercial services while in parallel building the organizations’ internal institutional capacities. Through working with BSOs and MSMEs, BEP has gained a deeper understanding of the obstacles preventing Macedonian MSMEs from growth. Over the past six months of intensive communication with the stakeholders from the startup ecosystem, BEP, in close coordination with USAID Macedonia, finalized the concept for the development of Macedonia’s start up ecosystem. To fill the gaps in information, services and financing identified by the Year 1 mapping, the Project will support the development of an integrated web-based matchmaking and information sharing platform, combined with financial products suitable for startups (e.g. crowdfunding). The platform will be developed through a grant that will be implemented by four BSOs that are working within the ecosystem. Though the development of the startup ecosystem started as an O2 activity, the initiative is now being developed under O1, in alignment with BEP’s overarching efforts to improve BSO services to MSMEs, including startups.
Similarly, as the proof of concept phase in one O3 initiative (Okitex) revealed that BSCI certification is invaluable for the development of the textile sector, the apparel cluster approach BEP with an unsolicited proposal for scaling the initiative. As a result, BEP will partner with an organization which will continue providing the sector with the knowledge and know-how for going through the BSCI process. The BSO (Textile Trade Association – TTA) had already worked with BEP on the Okitex initiative and realized that BSCI could be a sustainable fee-based service for their members. As sustainable development is one of the main goals of USAID in Macedonia, BEP will support TTA’s business growth through a grant.
BEP is also in negotiations with Micro Finance Alliance (a BSO that unites the three microcredit institutions) to work on an A2F initiative, specifically, providing access to microcredit loans for vulnerable groups such as farmers, small businesses in rural areas, and sole traders selling at the green markets. Both TTA and MFA approached BEP with an unsolicited proposal, while the startup ecosystem joint project was initiated by BEP, through a restricted eligibility grant call.
Under Objective 2, BEP continues to exceed its A2F targets through the active engagement of 27 financial facilitators (FFs). By mobilizing $15.6 million in investments to date, the Project ended the quarter with assistance provided to 71 companies, out of which 64 MSMEs successfully accessed finance with the help of BEP. Most of the FFs assistance was directed towards MSMEs outside of the Skopje region, and ensured an appropriate gender representation among their beneficiaries.
As part of the strategic approach, BEP also steered the activities of this objective towards the targeted development of specific sectors. During the quarter, BEP started looking into opportunities to drive
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financing for the startup ecosystem, to increase the availability of IPARD funding for the dairy sector, and to develop two more financial products (Factoring and Loan Referral platform) that will serve traditionally underserved MSMEs, mostly in the agricultural sector. BEP is also continuing its efforts to build the capacities of the FFs by partnering with financial institutions to educate them on a variety of financial products that could increase the effectiveness of support offered to MSMEs. BEP also made serious efforts to build the capacities of the FFs to engage in equity investment deals. Although the initial idea was to start with an equity investment conference, the insights from the field revealed that the market (both consultants and company owners) is not ready for this kind of transaction, and as a result, BEP began with a comprehensive Mergers and Acquisitions training for the FFs.
Regarding the financial analysis of selected sectors, in this quarter, BEP developed a whitepaper on Macedonia’s dairy sector that later served as an input into a dairy policy paper. The Project realized that the dairy sector requires a comprehensive approach, including policy efforts and systemic improvement. As such, BEP consolidated its insights in the dairy sector, the analysis from the whitepaper, and the information from Israel’s MASHAV field visit into a policy paper that is to serve as a guide for policy makers seeking to enact appropriate measures for supporting the dairy sector. In terms of finances, one of the key findings is that the funding offered from IPARD could be instrumental in the growth of the sector, but there are several structural constraints that discourage farmers for applying. As such, the policy paper advises policy makers to take appropriate steps toward lowering this barrier and assist the further development of the sector. This policy paper will be presented to the relevant institutions and ministries in the beginning of the next quarter.
Under Objective 3, the Project concluded all eight private sector engagement (PSE) initiatives, resulting in the development of a strategy for scaling and replication in three areas: agribusiness, textiles, and workforce development. BEPs integrated approach is critical to O3 scaling; for example, in the dairy sector, in addition to the equipment and extension provided by the farmers through the PSE approach, BEP also leveraged its pool of O2 facilitators to assist farmers to access IPARD funding. BEP also leveraged new veterinary services that were developed by Agro Lider under their O1 grant, and invited experts from MASHAV to assist the contracted farmers with modern dairy practices in the field of animal nutrition, hygiene and reproduction. Lastly, the Project will use the policy paper developed under O2 to steer some of the policy efforts towards this sector.
The Project is also implementing the scaling of its raspberry and chokeberry (aronia) PSE initiatives by supporting the continued expansion of their supply chains, aiming to increase farmer’s profits by moving them towards the production of high value fruits as opposed to low value staple crops. A strategic approach will also be used for the textile sector, where BEP will continue scaling the initiatives both on BSCI and technological upgrade, hence contributing to the increase in productivity and profitability of the sector. As already reported, BSCI will be developed through a O1 grant to the apparel cluster, hence contributing to a sustainable service that will allow the sector to further grow after the Project ends.
Regarding workforce development, the Project in Q1 worked on identifying and designing two initiatives that aim to develop vocational training centers and targeted trainings for the most pressing workforce shortages in a specific sector. BEP is still in the concept development phase, considering further development of the concept by including more companies and beneficiaries. All these efforts will be also coordinated with the workforce media campaign, which BEP in cooperation with several other donor and government organization develops with the aim of increasing the youth’s interest in the vocational education and occupations.
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OBJECTIVE 1: IMPROVED BSO SERVICES TO MSMEs
OVERVIEW Macedonia has a wide range of Business Service Organizations (BSOs), many of which commercial unsustainability due to an overdependence on donor support and funding. Consequently, members MSMEs see BSOs as weak, with little value in supporting them. Many BSOs lack coherent visions and require support to hone and target the services they provide to their MSME members and clients. Through a mix of grants and technical assistance, BEP is working with promising BSOs to identify and develop the services demanded by their members/clients and the wider market, helping them hone their service offerings. BEP is supporting BSOs in demonstrating the value and impact their services can have for the growth and productivity of MSMEs as a way of incentivizing companies to start using and paying for these services more frequently. Objective 1 activities are designed to build stronger relationships between MSMEs and BSOs, leading to ongoing and self-sustaining fee-for-service relationships in the future.
NEW BSO’S SELECTION
UNSOLICITED PROPOSALS During the quarter, BEP received an Unsolicited Grant Applications from four BSOs: The Textile Trade Association – TTA, the Macedonia Association of Producers, the Vege Fresh Cooperative and the Microfinance Alliance. The Grant Evaluation Committee (GEC) invited the applicants to a pitching session to present their activities, expected results and budgets. The GEC evaluated the applications and recommended that only TTA and the Microfinance Alliance undergo additional negotiations and a Pre-Award Assessment. The TTA application was approved by USAID and a grant agreement will be signed during the next quarter.
The Textile Trade Association grant activities include the introduction and implementation of Business Social Compliance Initiative (BSCI) standards that will increase textile companies’ export potential by opening new sales opportunities with buyers that require BSCI compliance. The grantee will also improve the public image of textile companies by featuring successful MSMEs and their employees’ profession on a TV show.
The Micro Finance Alliance (MFA) application is still in the pre-award assessment phase.
RESTRICTED ELIGIBILITY REQUEST FOR APPLICATIONS BEP issued a Restricted Eligibility RFA for Supporting the Self-Reliance of Macedonia’s Startup Ecosystem. In order to achieve the goal of building a more functional, effective and efficient startup ecosystem, BEP, in discussion with the various stakeholders from the startup sector, identified and proposed four partners to work toward building a self-reliant model to service startups long after the Project ends.
Startup Macedonia, in cooperation with the Macedonian Chamber of Information and Communication Technologies (MASIT), the Center for Entrepreneurship and Executive Development (CEED) and the Macedonian Stock Exchange (MSE), will be developing a web- based platform that will aggregate data, provide matchmaking and access to new services. The goal of this platform is to facilitate access to finance for startups and enable BSOs to improve corporate innovation and provide more productive services to new and established companies. While the
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Platform will be developed by Startup Macedonia, other partners will actively work on making it more relevant by offering their services on the platform, and developing new services, including facilitating lead company, angel and crowdfunding investments in innovative startups.
PRE-AWARD PROCESS Upon receiving the applications BEP reconvened the Grant Selection Committee (GEC) comprised of the USAID COR, BEP PD, COP, DCOP, Operations and Grants Manager, and two outside members from the Ministry of Economy and from the Swiss Development Agency. The four applications of CEED, MASIT, Startup Macedonia and MFA are in the Negotiations and Pre-Award Process. The COP and the DCOP / Operations and Grants Manager are negotiating with the potential grantees, interviewing proposed technical specialists and performing a pre-award survey.
STRENGTHEN INTERNAL CAPACITY AND SUSTAINABILTY OF BSOS Led by subcontractor SDC, BEP is continuing to provide technical assistance to the BSOs to implement the grant agreements and milestone activities through mentoring and training. BSOs have been measuring their progress by conducting annual member satisfaction surveys to evaluate the success of their services and the value created for their members, enabling them to make course corrections. They have also conducted training satisfaction assessments in order to inform next rounds of trainings.
SDC continued to provide support for grantees in delivering monthly/quarterly technical and financial reports, implementing activities, financial management and communication through mentoring. During this quarter support was provided on daily basis. Two mentors are assigned for each BSO grantee, one from BEP and one from SDC staff. One to two meeting were held monthly with each BSO during this quarter. The focus of the meetings was to assess the progress towards achieving the Activities associated with the grant agreement and provide necessary guidance and support.
Moreover, BEP provided specific support for topics most relevant to BSO’s capacities. As such, the Project team continuously assists the grantees in their event organization and logistics, communication and PR efforts as well as MEL plans design and implementation. As for the broader topics, BEP and SDC organized trainings, briefly explained below.
Communication management and public relations training. The training conducted by BEP’s Communication Manager resulted in increasing the BSO’s capacity to successfully develop their draft communication plans and conduct their communications activities more effectively, both internally on the organizational and membership level and externally on the general public level. As a follow up, SDC continued supporting the grantees in keeping their communications plans updated.
Business planning and strategies growth. BEP introduced BSO grantees to the business planning process with a focus on strategic planning, service development, pricing and costing, and market research. Moreover, BEP and SDC facilitated BSO’s engagement with a business planning consultant, supporting the offer evaluation process and contract development. Each BSO grantee conducted the procurement process and engaged a consultant company to provide BSO specific business planning support services and develop a business plan. BSO’s representatives participated in the training together with their selected Business Development consultant. It is expected that BSOs will develop mid-term business plans (3-5 years) in the period of November 2018 – June 2019, focusing on their potential for sustainability (e.g., increases in paid services and memberships, development of new membership packages, etc.).
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BSO Business Planning session with PointPro Consulting (November 2nd, 2018) Lobbying and advocacy training. In order to introduce strategic approach for lobbying and advocacy activities on improving and adapting national legal frameworks and reforms according to the interests of the various sectors, BEP in cooperation with USAID Project Partnership for Better Business Regulation organized a training on November 29, 2018 in Skopje. The BSOs acquired knowledge and basic skills for lobbying and advocacy, in order to adequately respond to the challenges related to the policy compliance. Follow up meetings were organized between Epicentar International and two BSOs, the Macedonian Lift Association and Solar Macedonia, in order to review possibilities of cooperation and providing direct support to their lobbying activities.
IMPLEMENTATION OF GRANTS AND TECHNICAL ASSISTANCE TO BSOS During this quarter all grants continued to be implemented according to BSOs work plans and milestones:
• Regularly prepared and submitted monthly reports and other supporting documents; • Continued activities for setting a baseline for M&E system and gathering information from members; • Continued coordination activities and meetings with BEP and SDC on grant implementation; • Fulfilled administrative and finance activities regarding grant implementation.
INTRODUCED NEW OR UPGRADED EXISTING SERVICES BY THE BSO’S
MAKAM-TRANS • Creation of centers and running a program for adult education in the field of transportation and communications. Makam-Trans started with the verification of their non-formal education program and expanded the outreach of the trainings. During the quarter,
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they signed an MoU with the Faculty of Technical Science in Bitola to include students in their trainings and conducted Logistics Clears trainings for 86 participants who are now eligible to obtain a certificate recognized at the state level. Upon successful completion of the program, the candidates will be able to successfully organize an efficient and economical transport, which will allow lower costs per product unit, i.e. achieve sustainable growth and development.
• Development and launch of an IT application. After preparing the specification for the IT application and publishing the request for offers, Makam-Trans is in the process of selection of the company that will develop the IT application. The web tool will provide prompt and flexible data for the main transport corridors in Europe and establishment of a system of protection against bribes and corruption.
LAG AGRO LEADER • Agricultural extension services. To improve genetics and fertility rates, LAG Agro Leader began implementing artificial insemination according to the Ovsynch protocol. Dairy nutritionist expert and dairy reproductive specialist were engaged to implement the procedures together with selected veterinary clinics Provetalek and VetMaks. So far, they have visited 22 farms (several times), conducted ultrasounds on 69 cows and implemented the Ovsynch protocol on 55 of examined cows.
• Access to finance and business development services. The grantee organized two workshops on access to finance followed with a B2B meeting between O2 financial facilitators and farmers. The events organized in Mogila and Krushevo were focused on the IPARD program and the opportunities for farm modernization. Both events were attended by a total of 52 participants as well as representatives of the relevant government agencies for support of the agriculture sector.
• Veterinary training. Agro Leader conducted two veterinary trainings on veterinary health issues in cattle breeding (reproduction, dairy cow’s nutrition and methods for prevention of mastitis). The trainings were conducted by Israeli consultants Dr. Ezra Shosani (Expert of milking management) and Dr Shimon Ofir (Expert of Animal Nutrition), as part of the MASHAV (Israel’s Agency for International Development and Cooperation), visit to Macedonia in November. Since this training was accredited by the Scientific Board of the National Veterinary Chamber, after attending, the veterinarians fulfilled the criteria for renewal of professional license of Doctor of Veterinary Medicine (DVM).
• Farm cooperation model. Aiming to increase social cohesion and cooperation among all rural development stakeholders, LAG Agro Leader held five meetings in the Pelagonia region. The meetings were organized in different municipalities and all aimed to establish cooperation between the local farmers, private sector and municipal administration. The topics chosen were reflecting local needs, for example in some municipalities the meeting was aimed at sharing good cattle breeding practices while in other a feeding software and barn management practices were the main point.
CHAMBER OF CRAFTS – SKOPJE • Youth Employment Program. Chamber of Crafts-Skopje signed a memorandum of cooperation with the Employment Agency in order to select the young active job seekers and involve them in the Chamber’s workforce development activities. The youth employment program started in November 2018 with 32 young apprentices at 22 employers in the cities
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of Skopje, Bitola, Prilep and Ohrid. The selected masters of the craft will coach young students in a 9-month period, while being guided by a predetermined, standardized curriculum developed by the Chamber.
• Mastership training and examining. Chamber of Crafts has finished the process of hiring trainers for all four parts of the master’s exam. The exam provides a specialization into business management and marketing, knowledge on the civil society, and solid comprehension of pedagogy and andragogy principles. The selection process of candidates for the master’s exam finished in December 2018 with 30 participants attending the program.
• Internal and external communication and awareness raising program. The Chamber developed a website where visitors can search for hairdressers based on the city and get acquainted with news regarding the hairdressing craft. The new web-site for the hairdressers was launched on the new domain, bought for that purpose (www.frizeri.com.mk).
SOLAR MACEDONIA • Training for solar installers. Solar Macedonia signed a memorandum of understanding with the Electrotechnical faculty of the Goce Delchev University in Shtip. The MoU is intended to increase the participation of the university students in the training of solar installers and increase their practical knowledge and employment skills. Also, Solar contracted five experts (professors and engineers) for writing and presenting the thermal and photovoltaic handbook which was then used for trainings in Shtip and Skopje. The training was attended by 20 participants who upon successful competition were officially awarded with certificates.
• Additional services to the members. At the Tehnoma fair for new technologies, Solar organized a presentation on new solar thermal and photo/thermal collectors in order to improve the visibility of the organization and recruit new members. Moreover, Solar organized the first workshop for presenting their new services, attended by 42 representatives from solar companies and relevant institutions (Ministry of Economy, World Bank, GEF). Regarding the organization promotional activities, Solar finished the redesign and the upgrade of their web page https://solar.org.mk/. All the members with paid 2018 membership fees will have spots for placing advertisement on this web page, charge-free. Individual members can post their CV’s and their specific field of work which will be a great possibility for future engagement in related projects.
• Lobbying and Advocacy. The president of Solar took active participation in the public discussion for the new energy law. The main topic of this discussion was the possibility of installing photovoltaic systems in every home in Macedonia. Representatives from Solar held meetings with representatives from Epicentar, agreed to engage them as lobbying experts to help the BSO with the development of a policy paper for lobbying for better business environment in the solar sector of Macedonia.
MACEDONIAN ASSOCIATION OF METAL AND ELECTRICAL INDUSTRY (MAMEI) • Market Linkages. Though the measuring of results from last quarter's Macedonia Manufacturing Expo is ongoing, MAMEI this quarter completed the participant satisfaction survey that confirmed a high level of satisfaction. In addition, all respondents answered that they'd like to attend the next Expo in 2019. With the significant demand for quality B2B events becoming evident, BEP will support MAMEI in commercializing the event under its Objective 1 grant. For continuing the success of the 2018 Expo, MAMEI signed an amendment of the
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contract for cooperation with the German Association for Supply Chain Management, Procurement and Logistics (BME) and Delegation of German Commerce in Macedonia (AHK), while also negotiating support from Centre for Change Management (CUP), the Czech Embassy in Skopje, YES Foundation and Am-Cham Macedonia.
• Ecosystem Platform Development. MAMEI finished filling the database (online ecosystem platform) with the profiles of the companies. This tool will help MAMEI to create quick companies’ profiles that can be accessed by different companies within seconds.
MACEDONIAN CHAMBERS OF COMMERCE (MCC) • Member management software (MMS). MMC continued the process of the software development and started the procedures for contracting IT consultants. Additional consultations were conducted with financial experts and banks in order to adjust the software that will be used by the Chamber based on the existing possibilities for financial transactions.
• Digital B2B market launching. MCC realized that Digital B2B Market Launching is related with and dependable on the implementation of the Members Management Software and decided to implement all procedures for this activity jointly with Membership management software creation. As a result, a joint request for bids was sent to relevant companies and procurement procedure is underway.
• Membership fee packages. After conducting a survey, MMC realized that 91% of the members are satisfied with the services they receive. in the future, MMC will strive to increase the percentage of satisfaction by an additional 3-4% by introducing new services. Based on MMC’s previous experience and their needs, the chamber selected an expert for the purpose of developing the Membership fee packages.
• Electronic Verification of Certificate of Origin. MMC received three offers for the electronic issuance of a certificate of origin. They had additional consultations with the companies for the possibilities and added value from the implementation of the software.
ECONOMIC CHAMBER OF NORTH-WEST MACEDONIA (ECNWM) • Digital B2B Web and Mobile App. ECNWM conducted a survey with 126 companies to help design the content of the digital B2B platform. The scope of work for the digital B2B platform was finalized accordingly and an open call for B2B platform development is published. The procedure of procurement is underway. The platform will consist of several different modules: CMS Module, B2B Module, B2C Module & Mobile Application, web application structure and timelines, application visual guide, design, features and development of web application.
• Access to markets for ECNWM businesses. ECNMW had a meeting with the Mayor of Bogovinje municipality and agreed on mapping of potential businesses. Additionally, the Mayor, during his visit to Switzerland, had meetings with different business clubs from the diaspora and discussed the market expansion program, resulting in cooperation between the companies from Switzerland and the members of the Chamber. Also, ECNWM initiated an MoU with the Chamber of Doing Business in Kosovo, aiming to support the Market Expansion Program by identifying companies in Kosovo for the B2B and Regional Business Award.
• Membership service desk (MSD). ECNWM issued a request for offers for MSD and received three offers. A consultant company was selected after the selection and evaluation
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processes were finished. All phases regarding the development of the MSD are finished, the in-house training for the ECNWM employees is planned for mid-January 2019.
MACEDONIAN LIFT ASSOCIATION (MLA) • Development of customized annual lift training courses. MLA conducted two trainings, totaling 43 participants from the private sector, government institutions and agencies. MLA issued a certificate of participation for every participant of the training which is a valuable proof of continuous development of employees within the regular controls carried out by the IARM (Institute for Accreditation of the Republic of Macedonia).
• Enhancing Legal Compliance in the Lift Industry: Support, Lobbying and Awareness Raising. MLA representatives have attended two meetings as part of the Ministry of Economy Internal Market Department Workgroup for drafting a new rulebook for lifts in use, which will replace the existing one and translation and adoption of the new European Lift Directive, as well as their transposition into the Macedonian Legislation. Also, MLA received an invitation for membership in the European Lift Association (ELA) and signed a cooperation agreement Bulgarian (BLA) and Croatian (HUDIZ) lift associations.
• Development of MLA Quality Mark Award Program. MLA prepared the draft version of the QMA program and established the key standards and criteria that the companies should meet in order to acquire a quality brand. The QMA program handbook will be finalized in the next quarter.
• Professional Adult Qualification and Re-qualification Vocational Education Training (VET) Program. MLA had a meeting Adult Education Center for registering and certifying their trainings. Three MLA lift experts are working on a draft version of the VET program intended for lift maintainers and installers and planning the future steps of the implementation of this activity.
BEP LOCAL PARTNER CAPACITY BUILDING During the quarter, BEP continued with the capacity building process for the local subcontractor – Strategic Development Consulting (SDC). BEP worked together with the SDC team on monitoring BSO procurement procedures and SDC representatives continued to attend BEP’s weekly staff meetings and actively participate in discussions relating to activities envisioned and implemented under Objective 1. In addition, SDC participated in grantees work plan development meetings and MEL systems design and implementation.
Through this processes BEP ensured that SDC as a local partner will expand their knowledge and further building their capacities to be a resource center for the BSOs. Since SDC are funneling down the knowledge to the eight BSO grantees, BEP ensures that the local partner is positioned as a trustful knowledge center that could continue providing support to the sector, on a sustainable basis.
FACILITATE INTER-BSO NETWORKING AND PARTNERSHIPS Since there are natural overlaps in the mandates and objectives of some BSOs, BEP is fostering inter- BSO collaboration through a variety of forums and platforms. The goal is to enhance and scale the outcomes of each grant by harnessing existing synergies between BSOs. BEP facilitated one networking events in this quarter. Support was provided to the Chamber of Crafts for organizing a roundtable on December 7, 2018 together with USAID Modernizing Inspection
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Authorities Projects on “Confronting Grey Economy in the Crafts Sector”. The roundtable provided a forum for discussion of issues related to the grey economy in the sector, including representatives from relevant government institutions, inspection bodies and the private sector. The conclusions and proposed measures agreed upon were sent to the Government, Ministry of Labor and Social Policy, Ministry of Finance, State Inspectorates for labor and trade and Public Revenue Office.
A representative from the State Market Inspectorate at “Confronting the Gray economy in the Crafts Sector” event organized by Chamber of Crafts – Skopje (December 7th, 2018)
OBJECTIVE 2: IMPROVED MSMES’ ACCESS TO FINANCING
OVERVIEW
Despite sufficient liquidity among Macedonia’s financial institutions (FIs), MSMEs rarely rely on them to fund their growth or expansion—this comes primarily from reinvesting their internal resources. Businesses face a number of challenges in accessing finance: 1) MSMEs and startups often lack the financial literacy to take advantage of funding opportunities and find it difficult to obtain information on financing, 2) banks are not primarily oriented to serving MSME clients, 3) venture capital funds and business angels struggle to identify strong startups for investment and rarely provide business and management support, and 4) firms are poorly prepared for accessing funding from equity and impact investors.
To help businesses overcome these challenges, BEP is working with traditional and non-traditional FIs and with MSMEs to ensure appropriate sources of financing are available and accessible for business expansion and job creation efforts. BEP is improving information flows and matchmaking opportunities in the startup ecosystem while developing a sustainable model for access to non-
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traditional finance and business and management support for MSMEs, with a focus on improving financial literacy through the Project’s network of financial facilitators (consultants). Additional services provided by BSOs and lead firms (e.g. supply chain linkages and new market opportunities) will make MSMEs more attractive for financing, while our smart incentive structure—with project payments to facilitators phased out over time as they demonstrate the value of their advisory services—is cost-effectively employing facilitators to help MSMEs obtain financing. While our primary focus under Objective 2 is to facilitate non-bank financial institution (NBFI) lending to MSMEs, we are also working within the traditional financial sector to promote use of existing products that MSMEs have yet to take advantage of and develop new ones where possible.
SUPPORT MSME’S TO IMPROVE THEIR FINANCIAL LITERACY, MANAGEMENT AND ACCESS TO FINANCE
ACCESS TO FINANCE Over the quarter, 14 facilitators collaborated with a total of 71 companies, assisting them with accessing finance and improving their financial literacy and planning in the process. Although all companies received some form of capacity building, the facilitators engagement was successful with 64 MSMEs’ (including startups) in accessing finance totaling $9.7 million. Combined with the companies’ own investments of $5.9 million, the total amount of mobilized investments in this quarter is $15.6 million. In terms of demographics, 70% of accessed funds are for companies based outside the Skopje region and 27% are for women owned/managed businesses. In this quarter, Polog and eastern regions are the least represented, but it’s important to note that all eight regions are represented in this reporting period.
FINANCING ACCESSED BY MSME BY REGION
Vardar, 5, 8% East, 4, 6% Skopje, 19, 30% Southwest, 6, 9%
Southeast, 5, 8%
Northeast, 6, 9%
Polog, 1, 2% Pelagonia, 18, 28%
CAPACITY BUILDING To develop the capacity of the financial facilitators to serve a wide range of clients with various financing needs, BEP continues to hold trainings by harnessing local partnerships (e.g. SEAF and SC Ventures to conduct a training on equity finance/mezzanine; CEED to train facilitators on BANs as a
USAID BUSINESS ECOSYSTEM PROJECT QUARTERLY PROGRESS REPORT (OCT 1, 2018 – DEC 31, 2018) | 14 source of funding; PointPro/Capital Access “Usually, clients have wonderful ideas but lack financial Sofia to do mergers and acquisition training). capacity to transform the idea into an investment. As an ex BEP remains committed to ensuring that banker, I realized few years ago that companies are in dire facilitators remain up to date on trends and need of help when it comes to financial engineering so that they opportunities in the financial sector through can grow their businesses. That is why a year ago I left the ongoing information sharing sessions and banking sector and started working as a consultant who will events with financial institutions and relevant assist companies in choosing appropriate financial sources and government agencies. This process supports products. With the development of the financial projections we the facilitators in offering their clients well- manage to identify what type of financial instrument is the most informed advice through their comprehensive suitable for a specific company. Through this process, we are knowledge of all products and financing not just providing the sector a one-time service; trickling down options available. As the FF’s line of work is some of our advices contribute to the longer-term financial collaborating with the private sector, through knowledge and sustainability of the firm.” equipping them with relevant knowledge, BEP ultimately conveys financial and managerial Sashka Kostovska – Dlaka, Input DOO skills down the line to the private sector MSME’s.
PAY-FOR-PERFORMACE MATRIX As initially planned, BEP’s success fee for the financial facilitators included additional incentives for job creation and revenue increases in the assisted companies. However, given the lag in Central Registry data (only reported annually) which validates these numbers, BEP developed a new success fee matrix to assist with better budgeting. The matrix is based on investment criteria, rewarding FFs on the basis of the size of facilitated investment, and type of financial product used (non-banking financial instrument 25% increase) or woman-owned business (25% increase). Because the mapping of the financial market revealed that MSMEs usually consider only traditional sources of finance, the newly developed success fee matrix encourages the use of alternative and non-banking financial products available on Macedonian financial market.
DEVELOPING NEW OR DIVERSIFYING ALTERNATIVE SOURCES OF FINANCING FOR MSMEs AND STARTUPS During the quarter, BEP’s engagement with the private sector yielded some important conclusions on what is needed in terms of financial or operative instruments. Thus, plans for introducing new or upgrading existing products were developed in cooperation with different stakeholders from the financial market. These products are described below.
FACTORING Through extensive work in the agriculture and dairy sector, BEP acknowledged that farmers and cooperative members suffer from long deferred payments after their products are delivered to buyers and off-takers. This constrains their cash flow and their ability to reinvest in increasing farm productivity. BEP is exploring a type of factoring for farmers and cooperatives whereby microfinance institutions (MFIs) will pay farmers upon delivery of products, and the buyers will repay the MFI later, on a mutually agreed upon date. The factoring fees will be covered by the farmers and the lead companies. Given that this product complements the existing factoring instrument, BEP partnered with USAID’s Factoring Project to cost-share the feasibility study that will inform the potential product development process. This feasibility study will identify any challenges to consider before designing and piloting the product (such as how to ensure the creditworthiness of the buyers).
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ACCESS TO IPARD FUNDS Following the call for IPARD applications by the Ministry for Agricultural, Forestry and Water Economy, BEP identified a window of opportunity to further assist the agricultural and dairy sector in accessing finance. The main barrier to accessing IPARD funding is due to the lack of organizational capacity within the national institutions responsible for issuing the necessary documentation for accessing IPARD funds. Companies in need of IPARD funding often struggle with collecting the documents they are required to submit with their application by the given deadline and are therefore discouraged from entering the application process. Thus, BEP in negotiating with the Ministry of Agriculture, Forestry and Water Economy for organizing a workshop for the FFs, educating them on the finer details of the IPARD funding and application process.
MICROCREDIT LOANS REFERRAL SYSTEM MFA is considered for a grant under O1 to establish a loan-mediation IT-platform which will connect MFA members, the non-banking financial institutions, but also non-members, with over 20,000 currently unserved potential loan users as an outsourced market-based service. This loan mediation platform can only be successful and sustainable if it gets access to data of individual businesses, which requires an established business support network in all regions for currently unserved MSMEs, with adequate capacities and expertise to build a relationship of trust and a long-term partnership. To that end, BEP’s role in the platform will be to provide data through its established network of financial facilitators while Microfinance Alliance will process the data and build client files along with credit applications. The loan providers that decide to grant a loan will pay a fee to the Alliance for the services performed.
The Alliance will partner with another BSO, the Chamber of Green Market Traders, which has the authorization of the Ministry of Economy to represent the interests of over 15,000 green market traders as individual business entities. These two networks will provide the much-needed data for the platform, helping the lending matrix become operational and sustainable. In addition, MFA will actively work on educating the target groups in the field of financial literacy. In joint effort with the Chamber, the Alliance will hold 70 financial literacy trainings in 12 cities, as well as an additional 70 sessions with citizens on financial counselling.
STARTUP ECOSYSTEM PLATFORM As identified in the mapping of the startup ecosystem (Q2 FY1), Macedonia’s startup ecosystem is fragmented, with poor connections among stakeholders that limit opportunities for investment and collaboration. The Mapping showed that in most cases the problem lies in the mismatch of the offering of the BSO and the stage of development of the startup and the service needed for growth. In light of these, BEP Identified several adequate organizations whose collaborative efforts could results in long- lasting effect for the functioning of the ecosystem.
Through an O1 grant agreement (still pending USAID approval), BEP aims to support Startup Macedonia in developing a Platform that will aggregate data, provide matchmaking and access to new services. Lead companies interested in investing in startups are a potential source of financing, especially when it comes to new and advanced technology startups. However, there is currently a lack of available information, and the absence of a facilitator to match them. MASIT, as the representing body of the IT industry, could take advantage of the information on the Platform to identify IT startups and organize quarterly pitching to lead IT companies (its members) that could act as investors in the startups. MASIT’s role is to create specific services to the companies that are more mature and
USAID BUSINESS ECOSYSTEM PROJECT QUARTERLY PROGRESS REPORT (OCT 1, 2018 – DEC 31, 2018) | 16 interested in investing into new business ideas and join them in a group called MASIT Club of ICT investors, where activities for educating, sensitizing events and relevant business information will be provided as complementary services.
The Platform developed by Startup Macedonia can serve as a tool to reach out to startups with potential for growth. CEED is a well-versed facilitator, yet they also experience problems with the pipeline of startups as well as difficulties in activating the Business Angels. Moreover, through an effective collaboration with Macedonian Stock Exchange, CEED can focus developing an advanced crowdsourced model using the Estonian crowdfunding platform Funderbeam. On Funderbeam, startups first undergo a vetting process done through a database that can evaluate the product/service/idea before the startup enters the platform and can raise money. During the second stage, each startup must have a lead investor backing it up which in BEP’s case is an ideal tool to motivate the Business Angels to be more actively involved in startups.
RAISING AWARENESS FOR ALTERNATIVE FINANCE SOURCES
BEP successfully organized the third access to finance workshop that aimed to improve the facilitators’ knowledge of factoring and investment financing. The workshop organized in cooperation USAID Factoring Project aimed to present alternative financial instrument such including credit insurance as receivable account management instrument, reverse factoring as most used common type of instrument at Faktor Trust, co-financing grants for startups and spin-ups from FITR and investment financing from SEAF.
A2F workshop with SEAF, Factor Trust, MBPR and FITR (October 31st, 2018) Moreover, to improve information about applying for IPARD funds, BEP utilized its partnership with LAG Agro Leader to introduce Pelagonia farmers who are seeking to apply to for IPARD funds to financial facilitators who can assist them. As LAG Agro Leader is heavily involved in the sector, they
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identified and invited prospective farmers, while BEP assisted with providing information on the how to enlist the help of a facilitator and on the benefits farmers can expect from such assistance. This event is a part of BEP’s integrated approach to supporting the development of the dairy sector, with BEP providing multi-layered support, including equipment, expertise and access to finance assistance.
Lastly, to understand the needs of every sector in order to develop solutions for the most pressing issues, BEP, in cooperation with its strategic partner PointPro Consulting, develops sector specific white papers. The sectors are selected based on the project experience acquired through O3 PSE engagement and O1 BSOs. Over the quarter, BEP developed a whitepaper on primary agriculture, analyzing the financial constrains to growth with a substantial focus on microfinancing and IPARD- funded investment, as well as policy constraints. As this paper is important for the future BEP efforts in the dairy sector, the Project will organize an event for presenting its conclusions to the Ministry of Agriculture, Forestry and Water Economy in collaboration with the Association of Dairy Processors- Seal of Quality, an organization whose members are actively collaborating with BEP in the dairy sector interventions. Following USAID Macedonia Journey to Self-Reliance approach, where the partner’s role in the Project is emphasized, Seal of Quality will be put into the spotlight for this event, enabling the organizations to take a central position in the sector future development.
OBJECTIVE 3: INCREASING PRIVATE SECTOR ENGAGEMENT
OVERVIEW Sustainable MSME growth depends on accessing market opportunities that incentivize firms to invest in expanding their capacity, productivity, and/or labor force. Linking small producers and suppliers to lead firms can provide access to new and secure markets, transfer technology, incentivize upgrading and capacity building, and facilitate financing, creating value for all by overcoming MSME constraints to growth while strengthening lead firms’ supply chains and labor pools. In this sense, lead firm alliances are inclusive business models rather than just Corporate Social Responsibility (CSR) projects—lead firms participate not because of their social impact, but because they will increase their own competitiveness, productivity, and profitability.
Palladium is applying its proven lead firm approach to leverage resources from companies to support MSME, workforce and local economic development, and in turn strengthen Macedonian’s private sector. Lead firms are companies that are successful and respected in their industry, have existing networks of suppliers they may wish to expand, and can help impart technical skills and links to financial institutions to create win-win alliances, thereby increasing productivity and incomes for all partners. A “change agent” or “catalyst” is often key to forging these partnerships and catalyzing systemic change. BEP is playing this role by bringing together lead firms, MSMEs, FIs, and BSOs in dialogue, developing mutually beneficial activities and changing the incentives, relationships, and behaviors that underpin the current system. BEP is identifying and facilitating these activities, providing co-financing and TA, which will demonstrate to the private sector the strong economic incentives for the partnerships to continue.
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INCREASE PRIVATE SECTOR INVESTMENT IN ECONOMIC DEVELOPMENT ACTIVITIES During this quarter, BEP concluded three PSE initiatives with Rade Konchar TEP, Zdravje Radovo1 and Suna Star. BEP will continue to monitor future developments in order to capture their full impact. The status of the initiatives in which BEP is upscaling its PSE activities, is described below.
HIGH VALUE CROPS To increase the revenues and market potential of agricultural areas with small individual land holdings (under two hectares), BEP partnered with two lead export-oriented companies (LK Raspberry and IRN-Agro) which specialize in processing raspberries and organic aronia (chokeberries) – both high value crops. By assisting the companies to incorporate new farmers in their supply chains, BEP is promoting the benefits of backwards supply chain investments as a means of contributing to local economic development. During Year 1, both initiatives with IRN-Agro and LK Raspberry concluded their proof-of-concept phase.
In Year 2, BEP will work to scale its High Value Crops initiatives by continuing to collaborate with both companies on expanding their supplier base and promoting raspberries and chokeberries as a more profitable alternative to the crops traditionally grown in the Polog region (beans, peppers, tomatoes, corn, etc.). BEP backed LK Raspberry’s effort to promote this high profit fruit to new potential contract farmers. Working with the Polog municipalities, BEP organized presentations in 6 municipalities, which were attended by more than 60 farmers from the region. 15 attending farmers immediately showed interest in joining the supply chain of the lead company. Out of these, 5 were selected for further support, thus increasing the number of farmers assisted under this initiative. However, the number of new farmers is being scaled carefully by the lead company, which needs to take into consideration expected sales growth for next two years.
As for IRN-Agro, they experienced some changes in their perceived process of development. They operate a juice production facility in the southern town of Resen, which is not logistically ideal and presents an issue in securing organic certification. Therefore, they are investing in a new venue for their juice production plant. In the meantime, as the only aggregator of chokeberries in the country, they have attracted small producers from all over Macedonia. As the export sales channels are not yet fully operational (they do sell on the domestic market and export, but in small volumes for the time being), they are faced with growing reserves of chokeberry which incur storage have expenses. Thus, BEP will first work to assist IRN-Agro in offloading their current stock before proceeding with adding new farmers to supplier base. IRN-Agro will engage a financial facilitator who will provide assistance in developing a focused sales and marketing plan, as well as a robust financial strategy. Moreover, since the supplier base is still important for the company, BEP will continue supporting the existing chokeberry farmers in achieving organic certification and assist the newcomers to the supply chain.
DAIRY (INTEGRATED APPROACH) Macedonia’s dairy sector, though promising, has struggled to meet market demands over the last two decades due to lack of raw milk. The causes are numerous, but the most pressing ones are the poor implementation of production standards, including outdated farm management practices, suboptimal
1 Even though this initiative was planned for scaling in Year 2, all cooperation with Zdravje Radovo has ceased due to an ongoing criminal investigation involving some of the company’s owners.
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animal welfare and the high cost of fodder production. BEP is using an integrated approach to address these issues through a number of interventions under each of the three project objectives. In Year 1, BEP started this process by co-investing with lead companies in farming equipment that addresses some of these issues. In Year 2, BEP is continuing to support the sector not just with equipment, but also by supporting the development of extension services under O1, facilitating access to finance under O2 and training on improved farm management under both Objective 1 and 3.
Thus, the scaling phase increases the productivity of dairy farms feed production methods (underground irrigation for alfalfa), introducing new feed preparation protocols (optimal mix of ingredients for minimization of costs), introducing practices for improving animal health and welfare (hoofing), starting activities targeted at improving animal genetics (OvSynch protocol), and addressing issues with farm hygiene. Additionally, BEP’s financial facilitators will offer their services for accessing finance to farms interested in investing into expanding their operations.
The integrated approach requires more than just providing new farming equipment, it is equally important to educate farmers on how to improve their operations at all the critical points which affect milk production quality and quantity. The interventions are split into two focus areas:
• Farm-level Input (animal feed). To be competitive, dairy farms must produce as much of their own inputs as possible. This is especially true for feed, which is costly to purchase and can affect a farm’s profits. Therefore, BEP will co-invest with a lead company in purchasing subsurface drip irrigation systems for alfalfa production (a key fodder crop), which is expected to triple yields and increase the crop’s nutritional value. Additionally, BEP will co-invest in special mills for the preparation of concentrate (a mix of nutrients) for animal feed. The opportunity for farms to produce more fodder, along with their own concentrate, will lower feed production costs and help to improve milk quality, which will in turn lower their overall production costs. As increased quantity and better milk quality will ultimately improve the dairy processors bottom line, lead companies will co-finance 2/3 of the drip irrigation for alfalfa and will provide farmers with cold storage equipment for milk.
• Farm-level Output (raw milk). With the farm level outputs, co-investments will be focused on the procurement of milking systems for large farms. These systems will provide better quality milk, which will result in higher prices. The four milking systems provided by BEP will be matched with the same number procured by the lead company, with an additional investment by the company in milk cooling tanks for 10 farms. The cost of the systems provided by the lead company will be reimbursed by the farms in raw milk, hence the co- financing of the lead company for this equipment is valued at the price of the capital the farms would have to borrow if they were to finance these systems through loans.
To implement these activities, BEP is working with three new lead companies on defining the scope of cooperation, identifying the beneficiaries and budgeting the costs. Thus, the dairy initiatives will be scaled both by expanding their scope and by increasing the number of leads and beneficiaries. Currently, the intervention details are being finalized with the following companies:
Lead company Lead companies BEP Intervention Beneficiaries interventions Purchase of 4 automatic Purchase of 4 automatic 18 Farms / Lactalis milking systems and milk milking systems / capacity Companies cold storage equipment building
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4 Farms / Mlekara Velkovski Purchase of milk cold Purchase of feed mills / Companies + (Ve Milk) storage equipment capacity building 20 farmers Purchase of underground Purchase of underground Mlekara Bitola / 4 Farms / drip irrigation systems for drip irrigation systems for Magan Mak Companies alfalfa alfalfa / Capacity building
BEP is already supporting the development of extension services for the dairy sector, specifically veterinary advisory and medical services in Pelagonia. Through a grant, LAG Agro Leader partnered with Macedonia’s Veterinary Chamber and Prilep’s veterinary high school on improving existing and developing new veterinary services for the region’s dairy farms, including artificial insemination and livestock nutrition advice. In addition, the hoof trimming chute procured together with one of the lead companies is already being used by a farmer and trained veterinary technician to provide a professional hoof trimming service to over 100 of Pelagonia’s dairy farms, helping them maintain the good health of their herds. BEP also brought two experts from MASHAV (Israel's Agency for International Development Cooperation) to assist BEP’s farmers and potential partners. Working side-by-side with BEP’s agricultural expert and LAG Agro Leader, the experts visited 5 municipalities in the region of Pelagonia and conducted a total of 26 individual farm visits, three trainings and three meetings with relevant institutions. During this time, they engaged with over 60 farmers and veterinarians, and identified some challenges and barriers for the growth of the sector.
Meeting between BEP, MASHAV and Ministry of Agriculture, Forestry and Water Economy (November 22nd, 2018) To address the challenges identified by the MASHAV experts, BEP delved deeper into the issue, assessing the financial needs and opportunities for the sector, including IPARD and government subsidy programs. The Project learned that some of the access to finance issues, especially those relating to the low utilization of IPARD funding, are institutional. Drawing from multiple sources, including the whitepaper on primary agriculture, the team’s findings from the field, the report from MASHAV’s experts, and meetings with the dairy companies and farmers, the Project defined these additional challenges:
• Farms have a difficulty accessing collateral for farm expansion;
• The small individual plots of farmland and highly fragmented land distribution remains a major inefficiency and a constraint to dairy farm expansion;
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• The Detailed Urban Plans (DUP) of most rural municipalities are outdated and incomplete, lacking zoning for commercial farm development. This presents an issue for IPARD applicants since they need to submit documentation proving that the land they want to develop (e.g. build a barn on) is owned by them and has been zoned for agricultural development and is away from urbanized residential areas.
• Municipalities can apply for funding for updating their DUPs from parts 6 (Investments in Rural Public Infrastructure) and 7 (Farm Diversification and Business Development) of the IPARD program, but this is not currently seen as a priority for most rural municipalities.
Catalyzing Dairy Sector Growth: A Guide for Policymakers and Dairy Sector Stakeholders
Macedonia’s large and medium dairy farms can generate a net economic impact of €33.1 million in the next 10 years, but the public institutions must work together and act strategically to open the way forward. Though the Project’s approach is wide- reaching and has managed to catalyze significant private sector interest in strategically supporting the development of the dairy supply chain, some issues can only be addressed by policy changes, the exact nature of which is the subject of this policy paper. To support the Government of Macedonia in the process of aligning policy with the growth needs of the dairy sector, BEP summated its acquired knowledge from both formal research and field experience in this policy paper, intended to provide guidance to policymakers and the sector at large. This document was created based on the Project’s collaboration with the biggest dairy processors from Pelagonia and over 60 of their contract dairy farmers, veterinarians operating throughout Macedonia, consultant agencies and expertise from foreign aid institutions.
Specifically, this policy paper primarily addresses three topics: • Rethinking municipal-level IPARD funding priorities and application support measures to resolve dairy sector development constraints, especially those that stem from the lack of Detailed Urban Plans (DUP) in rural municipalities; • Redesigning raw milk subsidies to promote commercial dairy farm development; and • Updating outdated farm management and production practices that represent a significant constraint on increasing dairy farm productivity.
Applying these recommendations or using them as a starting point to develop a strategy for developing the dairy sector will lead to a drastic improvement in Macedonia’s dairy farming. New investments in modern dairy farms will increase productivity by improving the cows living conditions, increase the number of dairy cows throughout Macedonia, end the daily hard manual labor and increase the competitiveness of the industry due to the better working conditions and the more efficient production process. Zooming out to the local economic level, the rural municipalities will experience economic growth that will directly ameliorate the quality of life of the local population, which will in turn help to reduce the rural-to-urban migration that is draining the economic potential of Macedonia’s rural areas.
All these challenges lead the Project to the last piece of the integrated approach – policy efforts. BEP developed appropriate solutions for the abovementioned challenges and presented recommendation to the relevant institutions. The recommendations were a part of a policy paper, a document which incorporated all the information explained above and an additional cost-benefits analysis of using IPARD funding, both from the individual farmers and government perspective.
The recommendations will be presented to MAFWE in the beginning of the next quarter, together with the Association of Dairy and Meat Processors of Macedonia. The event will consist of a discussion between the Project, the Association, MAFWE, MLS, AFSARD and the dairy processors, and will aim to draw conclusions on which steps need to be taken next to advance the sector’s development. BEP will structure all future activities in the dairy sector, accordingly, utilizing all the assistance it can get from the private and public sector.
APPAREL To promote PSE as a model for local supply chain development and inclusive growth, in Year 1 BEP co-invested with three export-oriented lead companies on three different initiatives in the apparel industry. With this initiative, BEP aims to strengthen the whole sector through providing equipment
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and technical assistance that will increase the productivity of the small companies which take subcontracting roles in the lead companies’ supply chains. Since small companies are dependent on large companies to outsource some of their operations to them, the productivity growth of these small subcontractors can accelerate the growth rate of the large contractors, which incentivizes large apparel companies to engage in PSE activities that benefit both them and the companies in their supply chain.
As foreign buyers require businesses to be socially compliant, it is important for export-oriented textile companies to be Business Social Compliance Initiative (BSCI) certified. Thus, one initiative with Okitex was concluded this quarter and aimed to equip the subcontracting company with enough know- how and funding to pass the BSCI requirements and acquire the certification. The BSCI evaluation was conducted in three companies and the evaluation reports stated that all had issues with training of employees in BSCI principles. However, BSCI is not a certification per se, but rather a process that every company has a certain timeframe to develop a plan for remedying the issues noted by the auditor. All three companies will have to be re-audited next year, in the mean time they should work on addressing the issues stated in the reports from the first evaluation.
As for the other initiatives, the successful proof of concept and subsequent interest provoked in the sector, prompted BEP to scale this approach in its second year of operations as elaborated in Y2 work plan. The scaling phase is planned to be implemented in two stages. During Stage 1, a maximum of 5 interventions are identified for support with co-financing from BEP. The goal of this stage is to fortify the need and feasibility of the concept, providing for a recognized sample of apparel lead companies which applied for PSE support. Some lead companies have been identified through the O2 FFs, while others will be identified through the Textile Trade Association. In the following quarter BEP will develop a study which will provide all the necessary inputs for moving into the next stage. The study will be a crucial tool for BEP, as the intention is to leverage financing from public and private sources like FITR and/or other financial institutions, for which it will need detailed documentation and metrics. One of the alternatives being considered is to have the lead companies guarantee for the loans that the micro and small suppliers would apply for. However, further discussions with lead company owners are needed to confirm the feasibility of this approach, as well as more focused discussion with FIs and MFIs.
Currently, BEP’s CoP and Objective 2 leads are concentrating their efforts only on interventions where the finances will be acquired through a financial institution or government grant scheme (e.g. FITR). These interventions are easier and faster to implement and will provide opportunities for fine tuning the PSE approach towards the apparel sector.
The quarter ended with identification of four lead and four beneficiary companies for scaling the initiative. 15 potential leads were identified through BEP’s network of financial facilitators. Eight companies were shortlisted after one-to-one meetings with the Project, out of which four were approved by USAID. The beneficiary companies are micro and small companies with low creditworthiness. These interventions are expected to yield a total of 22 new employments and an average of minimum 15% revenue growth at beneficiary level.
WORKFORCE DEVELOPMENT With its shift to cover workforce development, BEP is supporting lead company investments into workforce development (WFD), or more specifically, Training for Employment initiatives that aim to impart vocational skills to young unemployed (or underemployed) adults, adults seeking requalification and employed adults looking for additional qualifications to become eligible for better jobs. Whenever
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possible, BEP is looking to leverage funding from multiple lead companies in order to reduce training costs and increase the number of beneficiaries served. Additionally, BEP is exploring opportunities for public-private partnerships (PPP) that may strengthen the sustainability of Training for Employment initiatives, such as housing trainings in vocational schools and engaging the teachers as instructors.
One such WFD proposal is from El Te Inzenering, a lead company working in the metal construction and welding industry, seeking assistance in implementing trainings for welders. El Te Inzenering saw the opportunity to co-invest under the PSE approach and BEP proposed scaling this initiative by identifying other lead companies that face the same issue and would be interested in joining the initiative. In discussions with the companies from the sector, BEP identified Zavar to be one of the best suited lead companies to pilot this initiative. Zavar specializes in welding and has an excellent reputation in the sector, meaning that it could raise the profile of the initiative while also contributing with their much-needed knowledge. The idea is to start the initiative with these two companies as pilots, and then have it open up to other interested companies which are willing to financially participate in the costs of the trainings. In terms of sustainability, one option which is being vetted is to have a BSO initially facilitate the process, while at a later stage this would be incorporated as a training center into an existing VET school through a form of a PPP.
Additionally, BEP is in communication with EVN, the main electric power distributor in the country. EVN has been active in the area of vocational skills development and showed interest in cooperation with BEP in an initiative to develop a training center in the eastern town of Kocani. The idea is to pilot a training center with the local vocational school of Gjoshe Vikentiev, which also covers four other towns: Vinica, Delcevo, Berovo and Makedonska Kamenica. BEP involved another reputable company from the region, Amphenol, which currently employs 1700 people and needs trainings for current and future employees. The strategy is to build this pilot around the two lead companies, but have the center open for others to join and use, subject to their willingness to invest resources (funding, equipment, materials, instructors, curriculums or know-how). Also, BEP plans to involve the school’s staff in a Train the Trainers module, which will serve as an additional incentive for the school to participate and ease the road to sustainability. The long-term vision is to have this develop in a public- private partnership which would be beneficial for the school, the municipality and the regional companies as main stakeholders.
Both this and the welding initiatives will be further developed in next quarter and presented to USAID for concurrence together with other WFD initiatives currently being identified under O3.
OUTREACH CAMPAIGNS
PROMOTION OF VOCATIONS, VOCATIONAL EDUCATION AND SKILLS DEVELOPMENT During this quarter, BEP continued leading the multi-stakeholder effort to plan and design a nationwide campaign that will promote in-demand vocations, vocational education and vocational skills development. The campaign's Coordinative Body includes BEP, the Swiss-funded Employment for Education Project, the UNDP Promoting Sustainable Employments Project, the Ministry of Labor and Social Policy, the Ministry of Education and the Fund for Innovation and Technology Development and all signed a Memorandum of Understanding roughly outlining the contributions and responsibilities of each party. BEP, E4E, UNDP and FITD will provide the bulk of the campaign financing in 2019 while the contributions from the other stakeholders will be in-kind.
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Representatives from the organizations that joined efforts for Vocations Promotion Campaign (December 5th, 2018) The Coordinative Body finalized the Communications Matrix which lays out the target audiences and key messages for the campaign. The campaign will primarily target young unemployed adults, and primary and secondary school students and their parents. The key messages will promote vocations as a valid, fulfilling and profitable alternative to non-technical careers, while also directing audiences to quality formal and informal educational opportunities, including those supported by BEP. Preliminary content for the campaign was also drafted, consisting of events (crafts and trades fair, school demos and field trips), videos for TV and web distribution (ads, explainers and testimonials), a central campaign website, an online quiz/game for vocational career orientation etc.
PROMOTION OF PRIVATE SECTOR ENGAGEMENT The production company hired by BEP to produce content for the PSE campaign concluded all production (filming) activities. The company will proceed with post-production during January 2019, editing the footage into 3-5-minute videos on lead company investments in high-value agriculture (raspberry and aronia initiatives), dairy (Agro Lider initiative) and workforce development (Rade Koncar TEP initiative). Parts of the footage used in those videos will also be edited into a 30-60 second TV ad that will promote the general concept of private sector engagement. In collaboration with USAID, the Ministry of Economy and the lead companies, the videos will be distributed through a number of television news and talk shows, and each organization's social media channels during February and March 2019.
CLA: COLLABORATION WITH DEVELOPMENT PARTNERS, LESSONS LEARNED AND ADAPTING THE PROJECT’S FOCUS BEP is designed to enable adaptive approaches to achieve its goals, constantly seeking feedback and analyzing the context in which it operates. Thus, as the grantees started implementing their activities
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it became evident that certain activities and goals overlap with those of the different stakeholders working in the ecosystem. Apart from the partnership with the USAID MIA Project and briefly explained above, BEP seized several more opportunities for joint efforts that could maximize the Project results.
After it became evident that BSCI compliance is oft-needed at Macedonia’s textile MSMEs, the Project started working towards making this initiative sustainable by developing a partnership with TTA – an organization that could offer BSCI as a sustainable service, even after the project ends.
Also, the Project developed and utilized partnership with two more USAID Projects – the Better Business Regulation Project implemented by Epicentar (lobbying assistance provided to Solar and MLA) and the Factoring Project implemented by Factor Trust (joint A2F efforts under O2).
BEP brought Israeli experts through collaboration with MASHAV, to assist Macedonia farmers through working side-by-side with LAG Agro Lider. Through acknowledging that the dairy sector needs a comprehensive, hands-on approach, BEP added foreign expertise to the extension services provided by LAG Agro Lider and equipment provided through Objective 3.
Each of this partnership enabled BEP to harness the synergy of joint efforts, maximizing the results while adding long term sustainability to every service developed throughout the Project’s operational time.
In terms of adapting, BEP met with the facilitators to review their experiences and needs regarding equity and capital investment. While it was concluded that equity finance is indeed needed on the market, both facilitators and companies need further education to be able to facilitate and absorb such funding. Therefore, BEP decided to cancel its plans for the Equity Conference in lieu of a different approach. As companies and consultants still lack the knowledge needed to negotiate mergers and acquisitions (M&A) transactions, BEP decided not to organize an equity investment conference and focused instead on enhancing FFs skills by organizing an M&A training. BEP engaged PointPro consulting and the Sofia-based Capital Access to hold a two-day workshop on developing knowledge and skills for mergers and acquisitions of companies. After the training, BEP will continue further pursuing equity deals by supporting the facilitators that identify potential companies that can absorb equity investment
Lastly, BEP was not initially planned to tackle workforce development issues but over the course of Year 1, it become evident that workforce is a pressing issue for almost every sector of Macedonia’s economy. That is why, BEP adapted to the newly arisen need through creating a partnership with institutions and organizations that also plan to address some of the workforce issues. Thus, BEP initiated a partnership with Swiss-funded E4E Project, UNDP, Ministry of Labor and Social Policy, Ministry of Education and FITD, connecting all stakeholders to contribute towards a joint promotional campaign for vocational occupations. This partnership enabled BEP to get a foothold in the issue, without the need to start slowly, from the very beginning. Although changing the focus throughout the project operation can be a slow and difficult process, harnessing partnership synergies enabled BEP to once again adapt and steady continue with assisting the growth of Macedonia’s ecosystem.
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MONITORING, LEARNING AND EVALUATION
OVERVIEW BEP works with a wide range of Project participants—including BSOs, FFs, FIs, lead firms and other organizations—and beneficiaries (entrepreneurs, enterprises, and individuals). BEP is applying an evidence-centered approach to MEL, tailored to provide the BEP leadership, USAID, and private sector partners (BSOs, FFs, FIs, and lead firms) and beneficiaries (MSMEs) with real-time monitoring of key indicators to drive adaptive project management and ensure cost-effective interventions that increase revenues and jobs for MSMEs, and creates a sustainable ecosystem of BSOs, FFs, FIs, lead firms and others to improve MSME competitiveness.
BEP’s MEL Plan includes both indicators and other data needed to assess the achievement of each of the core expected results of BEP, as well as evaluation and other learning data required to understand key elements of the Project’s theory of change. It also describes the processes that BEP will use to perform MEL throughout the life of the project in order to inform effective adaptive management required to achieve the desired results. The MEL Plan is a dynamic and flexible document that will be updated throughout the Project’s implementation. New targets will be incorporated based on Project performance and results, and changes in the Mission’s priorities.
Incorporated in the MEL Plan is the Collaborating, Learning and Adapting (CLA) approach aimed to foster collaboration between USAID and its Macedonian partners to enable adaptive approaches to achieve its objectives, informed by ongoing systems and contextual analysis. BEP will continually assess the effectiveness of Project activities and interventions to evaluate whether those interventions are succeeding, and how the Project can apply lessons learned and adapt the work plan, methodologies and approaches appropriately. The BEP team will establish enabling conditions for learning and adapting by encouraging openness to new ideas and opinions and supporting inclusive dialogue with varied stakeholders. The goal is to establish trust by using and sharing accurate and relevant data and engaging in analyses to reflect, learn and improve. The team will also incorporate CLA thinking into every-day work by identifying and engaging the right decision-makers across sectors and levels, fostering evidence-based actions, and carving out time and space for review, thinking and adapting.
CLA PRESENTATION AT USAID ECONOMIC GROWTH PARTNERS’ MEETING On October 17, 2018, BEP CoP and Director of MEL delivered presentation about CLA as approach including BEP CLA Plan that was developed in Year 1. BEP was invited by USAID to deliver presentation regarding the CLA approach in order to inform and familiarize other EG partners with the CLA concept and its incorporation in the projects. Since BEP is the only project that has so far developed CLA Plan, EG partners were introduced with the process of developing the plan and establishing the priorities aiming to capture all CLA processes and activities in the activities
FINDINGS FROM THE EVALUATION OF BEP EVENTS During this reporting period, BEP organized six events. For three of them demographic data have been collected according to all six defined dimensions. For the remaining three, the demographic are only partially examined-using two to five dimensions. An overall summary of the demographic structure on all events organized in the Quarter are presented in Table 1 below. For five out of six events, participants filled out evaluation questionnaire to provide their feedback on organization and share their impressions from the event. The findings are described in Annex II.
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Table 1: Demographic data for participants at BEP events
Event Communicati Third Business MASHAV MASHAV Lobbying Total on Access to Planning (field (vet and Q1- Management Finance Training visits) trainings) Advocacy FY19 Training Workshop Training Number of participants 25 24 22 79 211 20 381 By Gender Male 8 17 8 70 173 8 284 Female 17 7 8 9 38 7 86 No response 0 0 6 0 0 5 11 By Age 29 years and below 14 7 6 31 5 5 68 30 plus years 11 17 10 39 53 10 140 No response 0 0 6 9 15 5 35 By Geographic Location Skopje 17 N/A 13 0 N/A 8 38 Out of Skopje 3 N/A 1 79 73 3 159 No response 5 N/A 8 0 N/A 9 22 By Ethnicity Macedonian 21 N/A 13 N/A N/A 13 47 Albanian 2 N/A 2 N/A N/A 1 5 Turkish 1 N/A 1 N/A N/A 1 3 Serb 1 N/A 0 N/A N/A 0 1 Vlach 0 N/A 0 N/A N/A 0 0 No response 0 N/A 6 N/A N/A 5 11 By Employment Status Employed 24 N/A 16 N/A N/A 15 55 Student 1 N/A 0 N/A N/A 0 1 No response 0 N/A 6 N/A N/A 5 11 By Affiliation Company 4 N/A 4 N/A N/A 4 12 Individual Consultant 0 N/A 0 N/A N/A 0 0 Financial Institution 0 N/A 1 N/A N/A 0 1 Other 20 N/A 10 N/A N/A 11 41 No response 1 N/A 7 N/A N/A 5 13
ANNUAL RESULTS REPORT SUBMITTED TO USAID First Annual Results Report of BEP achievements was developed during the quarter. In the report, BEP presented its achievements in each of the objectives, but also discussed the constraints and challenges, as well as strategies for overcoming them. To prepare this report, BEP had numerous contributions and consultation.
FOLLOW-UP EVALUATION OF STUDENTS ENGAGED IN RADE KONCHAR TEP INTERVENTION Six months after participation in Rade Konchar TEP intervention (Team2Win student competition), students were contacted to provide feedback on the results from the intervention, including any changes in their employment status, registration of business and/or engaging as interns. Questionnaires were sent to 21 student that participated in the tournament. Thirteen students provided their feedback:
• 11 students are satisfied with the participation while 8 are particularly content with the organization and support received from their mentors • Four students reported changes in the employment status, with one student scoring a full- time employment and one registered his own IT company
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• Students recommended larger involvement and engagement by the mentors and better organization regarding factory visits.
Students working in Rade Konchar TEP factory (December 21st, 2018) All this can be summed by a quote from a participating student: “It is good to have events like this more frequently on different topics and with different companies. In time, the network will be expanded, and the quality of the events will be improved… When technical solution is selected, students from the winning team should be interns in the company during the development of the prototype.”
DATA QUALITY ASSESSMENT MEETING WITH USAID MACEDONIA REPRESENTATIVES MEL Director met with USAID Macedonia representatives regarding data quality assessment of four indicators on which BEP is reporting and contributing to the B-REDI achievements. For one of the indicators (Indicator 1.1.1 – Value of sales of firms receiving USG-funded assistance) the name should be modified to reflect the actual B-REDI indicator. Another two indicators that belong to different BEP objectives (Indicator 3 – Value of financing mobilized for MSMEs and startups and Indicator 4.1 – Value of lead firm and supply chain beneficiaries’ co-investment in supply chain, MSME and economic development activities) will be reported as one indicator, since both contribute to the achievement of the B-REDI indicator ‘Number of businesses assisted in obtaining finance (disaggregated by USAID supported services and other services).’ For internal purposes, BEP will continue to report separately on these two indicators, but an aggregate indicator will be defined for B-REDI reporting purposes.
MEETINGS ON M&E ISSUES WITH GRANTEES During December 2018, MEL Director met with seven out of eight grantees to support them in regular updates of their M&E System with data collected from grantees. The meetings included mentoring and coaching component as grantees were learning how to represent the data though the developed indicators. It was agreed that starting from January 2019, once a month the M&E System will be sent for review to SDC and BEP MEL Director to ensure that reported data are reflected in the system and not only in reports.
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OPERATIONS AND ADMINISTRATION
COMPLIANCE AND USAID APPROVALS During this quarter BEP submitted Requests for Approval (RfAs) to USAID Contracting Officer’s Representative (COR) and the Contracting Officer (CO) as required and in compliance with USAID rules and regulations.
During this quarter BEP submitted and received approval of:
• Contract AID – 165 -C-17-00001, Mod # 2 • Work Plan for Year 2 • Concurrence Memo for Apparel • Concurrence Memo for Global Entrepreneurship Week • Concurrence Memo Amendment for increasing the obligated amount for Access to Finance • Concurrence Memo for Dairy Supply Chain • Concurrence Memo for High value supply chain -Raspberries • Concurrence Memo for National media campaign to promote public sector
In addition, BEP submitted and is awaiting approval for a Concurrence Memo for the production five videos that will be presented on the TV show Agrar during 2019.
During this Quarter BEP received the Contractor performance assessment report (CPAR) with the following evaluation areas and rating:
• Quality: Exceptional • Schedule: Satisfactory • Cost Control: Very Good • Management: Very Good • Regulatory Compliance: Satisfactory
COMPLIANCE WITH MACEDONIAN LAWS & PALLADIUM POLICIES & PROCEDURES Proper Procurement of Goods and Services procedure was conducted for purchase orders, consulting and service agreements and per USAID and Palladium Policies and Procedures. Three bids were obtained, the received bids were evaluated, an approval was received from HO for all procurement above 500$, prior any project purchase was made.
CONTRACTING AND COMPLIANCE Table 3 below shows total number of Concurrence Memos approved by USAID COR to date worth $702,262
TOTAL OBLIGATED: $ 702,262 TOTAL SPENT: $ 205,111
TOTAL REMAINING: $ 497,151
During this Quarter 7 Concurrence Memos were submitted for approval to the COR. BEP continued the implementation of activities per USAID COR approved Concurrence Memos. A total of 40 procurement procedures for selecting best bidders were performed for supplies of office goods,
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CM Partner CM Concurrence Effective End Beneficiaries BEP Objective value cost- # Memo Title date date Cost-Share % obligated share
15-Dec- 30-Mar- QW $5,000 - 100% 17 18 1 Start-up Macedonia
2 Kariera.mk 30-Sep- MAMEI - EXPO and QW 1-Jan-18 $26,053 $13,020 67% 3 Amendments 3 18 Point Pro 31-Dec- O1&2 1-Jan-18 $50,000 - 100% 4 Consulting 20 31-Dec- Launch FP 2.0 and O2 15-Jan-18 $300,000 $ - 100% 20 5 Amendment IRN-Agro DOO/Building O3 1-Mar-18 1-Dec-18 $12,049 $87,436 12% Organic Aronia 6 Supply Chain Rade Konchar TEP/Student Competition, O3 1-Mar-18 1-Nov-18 $6,250 $25,650 $3,050 18% Mechanical 7 engineering Faculty Suna Star/Cooling Storage for apple O3 1-Mar-18 1-Mar-19 $7,500 $11,300 $3,050 34% 8 farmers Okitex/Certification of Textile suppliers 15-Mar- O3 1-Jul-18 $6,800 $17,900 $1,000 26% in Social compliance 18 9 standards Zdravje Radovo/Higher 28-Mar- 31-Dec- hygiene standards in O3 $14,160 $47,110 $11,100 20% milk collecting and 18 18 gathering higher 10 income for farmers Development of raspberry 18-Apr- 30-Apr- O3 $14,800 $20,000 $37,600 20% production supply 18 19 11 chain Development of dairy supply chain in 18-Apr- 30-Oct- the Pelagonia O3 $25,250 $28,500 47% 18 18 Region, SANO, Eko 12 Shar Ha Teks and Kuliteks, Lead Firm 30-May- 31-Dec- O3 $20,900 $29,100 42% invest in supply 18 18 13 chain and labor
14 Blanket Apparel O3 1-Oct-18 9/31/2020 $50,000 $50,000 50% Global 15-Oct- 15-Nov- O2 $4,000 $4,375 48% entrepreneurship 18 18 15 Week Increasing productivity across 30-Sep- O3 1-Oct-18 $124,500 $134,000 $28,000 43% the Dairy Supply 20 16 Chain
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Development of High Value Fruit 30-Sep- O3 1-Dec-18 $10,000 $17,750 $24,700 19% supply chain- 20 17 Raspberry National Media Campaign to 28-Sep- O3 6-Jun-18 $25,000 $50,000 33% promote Public 19 18 Sector Engagement
BEP PROJECT MANAGEMENT BEP faced come changes of personnel during Year 1 but has reorganized to meet the technical and operational needs of the project. BEP appointed a new DCOP – current Objective 3 Lead who continue to oversee and manage O3 in addition to assuming the DCOP responsibilities. Also, BEP has elevated the Operations and Grants manager to Operations DCOP given the extensive responsibilities required in managing O1 grants as well as overseeing the rest of the operations, finance, administration and procurement of the project.
ACTIVITIES IN THE NEXT QUARTER In the next quarter (January – March 2019), BEP will undertake the following activities:
EVENTS • Organizational Management Training (January 23-25) • Introducing Membership Service Desk of Economic Chamber of North-West Macedonia (January 30) • Access to Finance workshop (End of January 2019) • LAG Agro Leader Veterinary Training (End of January 2019) • Makam Trans Logistic Clerks Training in Tetovo and Shtip (January 2019) • MOU signing between MAKAMTRANS and Ministry of Interior (TBD)
ACTIVITIES • Mid-term review of BSO progress (Mid-February) • Presentation of BSO business plans development (Mid-February) • Organizational Management Mentorship (over the course of next quarter) • Workforce development promotional campaign (over the course of next quarter)
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ANNEX 1: BEP PERFORMANCE DATA TABLE (JULY – SEPTEMBER 2018)
Unit of Baseline Baseline 2018 2018 2019 2019 Actual Indicator Disaggregate Measure Year Value Target Actual Target Q1 Q2 Q3 Q4 Project Goal: Increased MSME Revenue and Jobs
1. Number of new jobs created in Number Gender 2017 NA 500 NA 1.500 NA assisted MSMEs Ethnicity Age (up to 29, 30 and above) Location Objective area 2. Average annual revenue growth Percentage Type of MSME 2017 NA TBD NA 15% NA rate of assisted MSMEs (micro/small/medium) Location of company Owners (female/male) Sector Objective area 1.1.1. Value of sales of firms receiving USD Location 2018 NA 5M NA 20M NA USG-funded assistance (F Indicator Domestic vs. International EG5-1, B-REDI) (export) Objective area 1.1.2. Number of MSMEs assisted Number Type of MSME 2018 NA 150 320 350 119 with USG support (micro/small/medium) Location Objective area 1.1.3. Number of people trained in Number Employed 2018 NA 50 145 150 319 new skills Unemployed Gender Location Objective area
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Unit of Baseline Baseline 2018 2018 2019 2019 Actual Indicator Disaggregate Measure Year Value Target Actual Target Q1 Q2 Q3 Q4 1.1.4. Number of MSMEs receiving Number Type of MSME 2018 NA 50 286 300 76 business development services from (micro/small/medium) USG assisted sources (F-Indicator) Location Owner gender Objective area 1.1.5. Number of private sector firms Number Type of MSME 2018 NA 25 54 150 17 that have improved management (micro/small/medium) practices or technologies as a result Location of USG assistance (F-Indicator Owner gender EG.5.2-2) Objective area
1.1.6. Number of MSMEs with Number Owner gender 2018 NA 25 27 100 21 linkages to new buyers Owner ethnicity Objective area New buyers Objective 1: Improved BSOs’ Services to MSMEs
2.1. Average increase in BSO Percent Location 2018 NA This indicator was 5% 21% membership not measured in FY2018
2.1.1. Number of new sustainable Number NA 2018 NA 5 0 7 0 services offered to MSMEs through BSOs
2.1.2. Number of processes that have Number BSO 2018 NA 5 16 15 8 been improved as a result of capacity-building activities supported by BEP
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Unit of Baseline Baseline 2018 2018 2019 2019 Actual Indicator Disaggregate Measure Year Value Target Actual Target Q1 Q2 Q3 Q4 Objective 2: Improved MSMEs’ access to sources of financing
3. Value of financing mobilized for USD Location 2018 NA 5M $44.157. 50M $15.562.808 MSMEs and start-ups Owner gender 157 Owner ethnicity Value of own investment Objective area 3.1. Number of MSMEs successfully Number Location 2018 NA 30 148 102 64 accessing alternative and commercial Owner gender finance with project support Owner ethnicity Objective area Existing vs. start-ups First-time borrowers 3.2. Number of FIs receiving USG Number Location 2018 NA 3 11 4 0 assistance in extending services to Type (commercial bank or MSMEs (F Indicator 4.3.2-7) other institution) 3.3. Number of new products Number New products vs. 2018 NA This indicator is not 1 0 developed, or existing products upgraded products measured in FY2018 upgraded for MSMEs and start-ups 3.1.1. Number of MSMEs and start- Number Location 2018 NA 50 229 171 71 ups assisted to access Owner gender finance/investment as a result of Owner ethnicity project support (pipeline) Objective area Existing vs. start-ups 3.2.1. Number of FFs trained and Number Company/Individuals 2018 33 5 40 5 2 engaged Gender Ethnicity Location Objective 3: Lead firms invest in development of their supply chain and labor force
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Unit of Baseline Baseline 2018 2018 2019 2019 Actual Indicator Disaggregate Measure Year Value Target Actual Target Q1 Q2 Q3 Q4 4.1. Value of lead firm and supply USD Location 2018 NA 150k $ 2M $ 172.240 chain beneficiaries’ co-investment in Lead firm/MSMEs/ 398.114 supply chain, MSME and economic BEP share development activities 4.1.1. Number of lead firms that Number Location 2018 NA 3 12 3 5 engage in and co-finance supply Owner gender chain, MSME, and economic Owner ethnicity development activities 4.1.2. Number of MSMEs reached Number Location 2018 NA 25 54 25 43 through lead firm and supply chain initiatives Cross-cutting indicators
5. Percentage of female participants Percent Age (10-29 years; 30 and 2017 30.81% 32% 32% 33% 27% in USG-assisted programs designed over) to increase access to productive economic resources (assets, credit, income or employment)
6. Percent of youth participants in Percent NA 2018 NA 15% 12% 17% 17% BEP activities
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NARRATIVE EXPLANATION OF THE REPORTED DATA
INDICATOR 1.1.2. NUMBER OF MSMES ASSISTED WITH USG SUPPORT In this reporting period, 119 MSMEs (including individual farmers) were assisted with USG support through BEP interventions in Objectives 2 and 3. The number of MSMEs assisted by BEP objective are presented in the table below.
Table 2: Number of MSMEs assisted by objective BEP Number of MSMEs Objective assisted Objective 2 71 Objective 3 48 Total: 119
The assisted MSMEs are registered in all eight statistical regions in Macedonia, with 76% located in municipalities outside Skopje region. Regarding company size 2 , 51 companies (43%) are micro companies. In contrast, 12 MSMEs (10%) are medium companies. 34 of supported MSMEs are individual farmers.
INDICATOR 1.1.3. NUMBER OF PEOPLE TRAINED IN NEW SKILLS During the reporting period, BEP organized ten3 training events under all three objectives. The total number of participants attending the training events is 381, out of which 319 people attended BEP training event for the first time, while 62 are returning participants. Three trainings were organized under Objective 1, one training under Objective 2 and six training events under Objective 3. 23% the total number of participants were female. Majority of participants came from Skopje and Pelagonia region.
Table 3: Number of people trained by objective
BEP Objective Number of trained people by objective Objective 1 26 Communication Management and 15 Public Relations Business Planning Training 6 Lobbying and Advocacy Training 5 Objective 2 7 Third Access to Finance Workshop 7 Objective 3 286 MASHAV - Krivogashtani 15 MASHAV - Prilep 36 MASHAV - Dolneni 15 MASHAV - Mogila 10 Vet Training Bitola - MASHAV 72
2 Company size is defined according to number of employees (1-9 micro; 10-49 small; 50-249 medium) 3 Field visits and onsite trainings by MASHAV experts are grouped according to location. Otherwise, there are 13 training events
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Vet Training Skopje - MASHAV 138 Total: 319
INDICATOR 1.1.4. NUMBER OF MSMES RECEIVING BUSINESS DEVELOPMENT SERVICES FROM USG ASSISTED SOURCES In this reporting period, 76 MSMEs have received business development services from BEP in Objectives 2 and 3. Support in the preparation of the documents needed to access to finance was the type of support given to each MSME under this indicator in Objective 2 by the financial facilitators. Under Objective 3, support was provided for improved production of high-value fruits to the beneficiaries in the private sector engagement initiatives. 62% of the beneficiaries are micro companies or individual farmers/persons. Forty-eight (63%) of the beneficiaries are located outside Skopje region. Women are owners of 32% of the MSMEs receiving business development services.
INDICATOR 1.1.5. NUMBER OF PRIVATE SECTOR FIRMS THAT HAVE IMPROVED MANAGEMENT PRACTICES OR TECHNOLOGIES AS A RESULT OF USG ASSISTANCE During the quarter, 17 MSMEs and individual farmers reported improved management practices or technologies with BEP support. In addition, twelve already reported beneficiaries under this indicator in the previous quarter reported new improvements. In total, 34 processes and technologies were improved by the beneficiaries in Objectives 1 and 3. Majority of the beneficiaries are individual farmers or micro companies. Regarding the improved processes and technologies, for instance individual farmers improved technology by utilization of the hoof trimmer, or improved management practices by learning and implementing OvSync Protocol on their farms. Other farmers improved the process of growing raspberries. BSOs on the other hand improved their processes for communicating their achievements and increasing their visibility by developing communication plans for their projects.
INDICATOR 1.1.6. NUMBER OF MSMES WITH LINKAGES TO NEW BUYERS Twenty-one MSMEs supported by BEP reported linkages to new buyers during this quarter. The total number if new buyers is 1.725 (31 of them international). Majority of MSMEs are micro companies (13). Eight of the companies are owned by women. According to geographic location, 86% of the MSMEs are outside Skopje region. In addition, all MSMEs reporting new buyers are supported by BEP in Objective 2.
INDICATOR 2.1. AVERAGE INCREASE IN BSO MEMBERSHIP Seven grantees reported attracting new members since the start of their grants. Overall, the average increase is 21% for all eight grantees compared to the number of members reported at baseline. The total number of new members for the seven grantees for 2018 is 279 MSMEs. On individual level, the increase varies. For instance, Solar reported significant increase because for 2017 (baseline year) no member paid their membership fee.
Table 4: Number of new members by BSOs by the end of 2018 Number of Number of new BSO Name members at members in baseline 2018 LAG Agro Lider 5 2
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Solar Makedonija 0 6 Makam Trans 545 101 Crafts Chamber Skopje 426 112 Macedonian Chambers of Commerce 134 27 MAMEI 9 4 Economic Chamber of Northwestern Macedonia 188 27 MLA 11 0 Total: 1.307 181
INDICATOR 2.1.2. NUMBER OF PROCESSES THAT HAVE BEEN IMPROVED AS A RESULT OF CAPACITY-BUILDING ACTIVITIES SUPPORTED BY BEP All eight grantees in this reporting period improved one process. Namely, after participation in training organized by BEP on communication and public relations, each grantee developed communication plan for their projects, which were reviewed and finalized with support by the BEP Communications Manager. Grantees are implementing the activities described in the communication plan as part of their grant interventions.
INDICATOR 3. VALUE OF FINANCING MOBILIZED FOR MSMES AND START-UPS Under Objective 2, 64 MSMEs supported by the financial facilitators succeeded to mobilize 15.562.808 USD from different financial institutions, including their own investment. Thirteen (20%) MSMEs are recipients of grants, while 51 MSMEs obtained loans. The structure of the investment is presented in the graphic below. The share of the MSMEs own investment is 28% of the total value of the investments.
Value of mobilized finances in USD
Total value of investment $15,562,808
Value of own investment in USD $5,853,160
Value of mobilized finances in USD $9,709,649
$- $4,000,000 $8,000,000 $12,000,000 $16,000,000
Table 5:Value of mobilized finances by financial product (total investment) Grants Loans $ 1.241.044 $ 14.321.764 8% 92%
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INDICATOR 3.1. NUMBER OF MSMES SUCCESSFULLY ACCESSING ALTERNATIVE AND COMMERCIAL FINANCE WITH PROJECT SUPPORT Out of 71 MSMEs that entered the BEP pipeline in Objective 2 during this quarter, 64 MSMEs successfully accessed alternative and commercial finance with BEP support. Nineteen MSMEs are in Skopje region, while 70% of the companies are located outside Skopje. Majority of MSMEs (28%) are located in Pelagonia. Seventeen (27%) of the MSMEs owners are female. Twenty-three of the MSMEs are startups, while eleven MSMEs are first-time borrowers.
STARTUPS AND FIRST BORROWERS MSMES BY OWNER'S GENDER
Male Female 47 17 14 9 7 4
NUMBER OF MSMES BY NUMBER OF STARTUP NUMBER OF FIRST - TIME OWNERS' GENDER MSMES BORROWERS
INDICATOR 3.1.1. NUMBER OF MSMES AND START-UPS ASSISTED TO ACCESS FINANCE/INVESTMENT AS A RESULT OF PROJECT SUPPORT (PIPELINE) Through financial facilitators engaged by BEP, 71 MSMEs had opportunity to access to financial resources offered by the financial institutions. Companies are located in all eight regions in the country. Women owned 22 MSMEs. 17 MSMEs (24%) are considered start-ups i.e. have been established in 2013 or later.
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MSMES IN PIPELINE BY REGION IN % Vardar 11% East 4%
Skopje Southwest 40% 7%
Southeast 4%
Pelagonia 21% Northeast Polog 9% 4%
INDICATOR 3.2.1. NUMBER OF FFS TRAINED AND ENGAGED In this quarter, two new financial facilitators started collaboration with BEP. In addition, one financial facilitator that has expired contract, signed new contract with BEP. The two new, and the returning financial facilitator are companies. The cumulative number of financial facilitators by the end of this reporting period is 42. In this quarter, 14 financial facilitators were active in supporting MSMEs to access finances for their business growth.
INDICATOR 4.1. VALUE OF LEAD FIRM AND SUPPLY CHAIN BENEFICIARIES’ CO- INVESTMENT IN SUPPLY CHAIN, MSME AND ECONOMIC DEVELOPMENT ACTIVITIES During the quarter, two types of co-investment have been reported. The first one is related to the investment in the four new PSE initiatives. The value of lead company and supply chain beneficiaries in these four PSE initiatives is $ 135.500. The second is related to additional co-investment by the lead company and beneficiaries in two of the previously reported initiatives in which participants increased their cost share compared to the budgeted initial investment. The additional co-investment is $36.740. Total value of lead companies and beneficiaries for this quarter is $ 172.240. Detail about the individual value of co-investment is presented in the Table below.
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Table 6: Value of co-investment in PSE initiatives – Q1-FY2019 Total Lead Beneficiary BEP BEP investment Initiative Company Company Investment Share4 per initiative Investment Investment in USD5 Hateks $ 7.500 $ 30.000 $ 6.500 14.8% $ 44.000 LAG Agro Lider Sano / $ 31.740 / 30.0% $ 31.740 Eko Shar Marancho Suna Star $ 5.000 / / 31.5% $ 5.000 Mlekara Bimilk $ 10.000 / $ 10.000 33.3% $ 30.000 Magan-mak $ 10.000 IMV-Mlekara / $ 10.000 50.0% $ 20.000 Velkovski $ 10.000 Lactalis MK $ 28.000 $ 40.000 37.0% $ 108.000 Mlekarnica $ 40.000 Total: $ 82.500 $ 89.740 $ 66.500 / $ 238.740
INDICATOR 4.1.1. NUMBER OF LEAD FIRMS THAT ENGAGE IN AND CO-FINANCE SUPPLY CHAIN, MSME, AND ECONOMIC DEVELOPMENT ACTIVITIES Five new lead companies have been engaged in PSE activities during the quarter. Four companies are leading initiatives in dairy sector, while one company lead an initiative in the apparel sector. Four lead companies are located in Pelagonia, while one in Skopje region. One company is women-owned business.
INDICATOR 4.1.2. NUMBER OF MSMES REACHED THROUGH LEAD FIRM AND SUPPLY CHAIN INITIATIVES In this reporting period, 43 MSMEs and individual farmers have been included as beneficiaries in seven initiatives. Four initiatives are launched during this quarter, while in three initiatives that have been launched in Year 1, new beneficiaries have been included.
Table 7: Number of beneficiaries included in PSE Initiatives – Q1-FY2019 PSE Initiative Number of beneficiaries New PSE Initiatives – Lead Companies Hateks 1 Lactalis 17
4 BEP share has been modified based on the additional co-investment. BEP share has been changed from 47.7% to 30.0% on the modified co-investment in PSE initiative led by Agro Lider. In Suna Star PSE initiatives, BEP share decreased from 39.9% to 31.5%. 5 Total investment for existing PSE initiatives refers only to co-investment made in this quarter for Agro Lider and Suna Star.
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Bimilk 4 IMV 4 Existing PSE Initiatives – Lead Companies IRN-Agro 1 LK Raspberry 4 Agro Lider 12 Total number of beneficiaries: 43
A large majority of beneficiaries (38) are located in Pelagonia, four are in Polog and one is in the Eastern region.
INDICATOR 5. PERCENTAGE OF FEMALE PARTICIPANTS IN USG-ASSISTED PROGRAMS DESIGNED TO INCREASE ACCESS TO PRODUCTIVE ECONOMIC RESOURCES (ASSETS, CREDIT, INCOME OR EMPLOYMENT) In twelve BEP interventions implemented during this reporting period, 493 participants have been engaged. Female participants represent 27% of all participants or 132 women were involved in BEP events in all three objectives.
INDICATOR 6. PERCENT OF YOUTH PARTICIPANTS IN BEP ACTIVITIES In this quarter, 17% of the participants in twelve BEP interventions are registered as being up to 29 years old.
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ANNEX II: FINDINGS FROM THE EVALUATION OF BEP EVENTS Communication Management and Public Relations Training. Twenty-eight participants attended the training on communication management and public relations as part of the capacity-building activities for grantees. Twenty-two trainees filled out the evaluation form at the end of training to provide feedback on the content and quality of the training. On average, the training was evaluated with 4.9 (on a scale one to five). All participants had clear understanding regarding the purpose of the training and received all necessary information before the training. The training participants expressed their satisfaction with the educational content and the opportunity to interact with each other in order get maximum information and knowledge. Sharing the tools and information about useful for the everyday communication activities of the organizations was highlighted as the most valuable part of the training. Also, the preparation of the communication plan was regarded as important topic for better presentation of the organizations’ activities and achievements. As one participant stated, ‘the training was excellent, I acquired additional knowledge on many issues for my daily operations. The trainer explanations were detailed enough, and I hope that we will have another opportunity to be part of similar training events in future that will help us to establish a decent communication with all beneficiaries and stakeholders.’
Third Access to Finance Workshop. The third access to finance workshop organized in this quarter was attended 24 financial facilitators. According to demographic data, seven participants were female, while seven were below 30 years old. Twenty participants filled in the evaluation questionnaire and provided feedback on the organization and content of the workshop. Overall the workshop was evaluated with average score of 4.6 (on a scale one to five). The feedback received showed that goals of the workshop were clearly defined and communicated with them before the event and they valued the opportunity for interaction during the workshop. The presentation from representatives of the Fund for Innovation and Technological Development (FITD) was emphasized as the most useful part of the workshop by majority of participants. Attendees would like to see more practical examples when financial instruments are presenting in order to be more understandable especially about the applicability of the instruments.
Business Planning Training. In this reporting period, a training on business planning was delivered to the BSOs under Objective 1, aiming to further strengthen their capacities with 22 participants. Twenty participants provided feedback and shared their impressions regarding the organization and content of the training. Overall, the training was evaluated with 4.8 (on a scale one to five). Participants valued the highest the opportunity to interact during the training and receiving responses to many of their dilemmas and questions related to business planning. According to the statements (narrative part of the questionnaire), all topics included in the training were useful. They found the training very insightful in terms that many aspects of their organizational work can be revised and structured differently such as types of membership, financial predictions and budget preparation.
Field Visits and Training Events – MASHAV. During the quarter, upon BEP’s requests, two MASHAV experts visited farms and provided onsite training in Pelagonia and delivered two training events for veterinarians in Bitola and Skopje. In total, onsite training were delivered in Mogila, Krivogashtani, Dolneni and Prilep, hosting a total of 79 attendees (individual farmers, companies’ representatives and high school students). At the training events for veterinarians, 211 employees in veterinary clinics attended (138 in Skopje and 73 in Bitola). Overall, the intervention implemented with MASHAV experts reached out to 361 beneficiaries, with 22% of participants being female. The most useful part of the training in Skopje according to participants was the topic of animal reproduction, although sharing practical experiences was acknowledged useful as well. In future similar
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events, participants would like to see more focus on the practical work compared to the theoretical part and would prefer smaller groups of participants in order to have a better interaction.
Lobbying and Advocacy Training. At the training on lobbying organized for BSOs representatives, 21 trainees participated. Fifteen participants provided feedback on the content and dynamic of the training. Overall, the training was evaluated with 4.5 score (on a scale one to five). Participants expressed their satisfaction about communication of the training objectives before the training and valued the opportunity to interact with the trainer and other participants during the training. Only three participants had some doubts about acquiring new knowledge and improving skills. The information and explanation for preparing a position paper was considered as the most useful thing from the training. EVALUATION OF BEP TRAINING EVENTS 6
5
4
3
2 EVALUATION SCORE EVALUATION
1
0 Question Question Question Question Question Question Question Question 1 2 3 4 5 6 7 8 Communication Management and Public 5 4.9 4.9 4.8 4.9 4.9 4.7 4.7 Relations Training Third Access to Finance Workshop 4.8 4.7 4.8 4.4 4.8 4.7 4.1 4.2 Business Planning Training 4.8 4.7 4.9 4.8 4.9 4.9 4.5 4.6 Veterinary Training Skopje 4.6 4.6 4.6 4.5 4.3 4.4 4.5 4.5 Lobbying and Advocacy Training 4.8 4.4 4.5 4.2 4.7 4.4 4.1 4.6
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ANNEX III: FINANCIAL REPORT The quarter’s financial report indicates that . BEP expects an increase of the Project’s burn rate next quarter, as a result of Project activities entering into implementation phase. Expenditures to date are consistent with plans.
Contract No.: AID-165-C-17-00001 Performance Period: September 28, 2017 - September 27, 2021 Reporting Period: September 28 - December 31, 2017
A B D E F=C+D+E G=B-F Estimated Estimated Ceiling Expenditures Expenditures: Unexpended Total Amount : November December from Ceiling 2018 2018 Salaries and Wages Fringe Benefits Allowances Travel, Transportation and Per Diem Equipment Supplies Other Direct Costs Subcontract/Grants Handling Overhead G&A Total All Other Costs Grants Total Estimated Cost Total Fixed Fee
Total Estimated Cost + Fixed Fee
Total Actual/Estimated Expenditures through 12/31/2018 Project Time Elapsed 25% Total % of Budget Spent to Date
Total Obligated Amount Projected Remaining from Obligated Amount Projected % Spent of Obligated Amount
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ANNEX III: CALENDAR OF ACTIVITIES
◄ September 2018 ~ October 2018 ~ November 2018 ► Sunday Monday Tuesday Wednesday Thursday Friday Saturday 1 2 3 4 5 6 Meeting Jacob Modeer Field Visit in Bitola, Communication training for MAMEI expo follow up Meeting with Zdravje meetings with Bi Milk BSOs (Event) meeting Radovo Ideal Shipka and Vemilk MAMEI Expo Follow up Meeting with the Dean Field visit to Shtip with MBPR & Internal Staff Meeting Meeting with Lovre Meeting of Facilty of Technical Bergala Risteski-Factoring Meeting Zarko Pop Iliev- Meeting with Helvetas Meeting with Balkan Bio Cert New product WFD & Helvetas Stem Academy development (BEP & meeting Meeting with WFD Meeting Meeting with Crimson MOZNOSTI Raspberry trainig for new farmers 7 8 9 10 11 12 13 Raspberry trainig for Raspberry trainig for Field Visit-Resen new farmers new farmers Meeting E4E Staff Meeting Meeting with Vemilk, Bimilk and Ideal Shipka BEP-Budget discussions Discussion on training in Meeting TTA Business Planning for Bep-Budget discussion Meeting Lag Agro Lider 14 15 16 17 18 19 20 Meeting with Nikola Investment Field trip to Pelagonija Dairy's & Meeting with IRN Agro PSE Field Visit in Resen from IRN Agro Categorisation Meeting with Agro Lider CLA Presentation Dry MLA-Staff Meeting O3-Apparel Application Review Date for First run Workshop for Solar's new members on MCC Staff meeting & Annual M&E Discussion WEF Event Discussion on business Meeting with USAID Happy Hour with other USAID 21 22 23 24 25 26 27 Quality of BSO quarterly report Access to Finance - LAG Meeting with MAFWE Agro Lider Event Round table with Chamber of LAG Agro Lider-Staff ECNWM-Staff Meeting Craft-Craftsmen & Inspectors Meeting MAMEI-Staff meeting Meeting with MFA, Meeting with Ivan Meeting for Yoda Project Finder Access to Finance discussion with MAMEI Meeting with Sanela from Ministry of Labor 28 29 30 31 Field Visit to Pelagonija- Meeting with Gjulsheven Meeting with Boro Teks Aro Lider Dalipi & Ekaterina from Alma Teks Testemonials from Meeting W/YEF on Third Access to Finance Partners entrepreneurship Workshop for Financial MoU signing between Meeting IRN Agro Solar & UGD Coordination meeting with Meeting with Tanja from IME
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◄ October 2018 ~ November 2018 ~ December2018 ► Sunday Monday Tuesday Wednesday Thursday Friday Saturday 1 2 3 Meeting with Emil Cebotex IRN Agro & Raspberry Visit
Skype Call Training in Business Planning for BSOs Meeting Reg Project Meeting with Aneta Petrovska from EVN Meeting Mayor of Bogovinje
4 5 6 7 8 9 10 Internal Staff Meeting Meeting with LAG Agrolider Staff Meeting - MAMEI Second Coordinative Meeting with Mashav visit preparations WFD Meeting Working Meeting-Building Staff Meeting - Makam Trans MEA Event - Public Discussion on Meeting the Mayor of the MK Startup Draft Regulation for renewable Krivogashtani energy sources
Approval of Nov 1-15 Kick Off Meeting-Facilitating Meeting with Goran Field Visit to Pelagonija Staff Meeting - ECHNWN Financial Supply Chain Flows Damovski MLA Staff Meeting Open House - MCGO & Second Training - SME Helvetas Export Accelerator (day two)
Meeting with Chamber of Craft - Agenda December 11 12 13 14 15 16 17 Mashav Agro Specialist BEP Y2 Work Plan Meeting Palladium and BEP Meeting Oscar Ramirez Meeting Cesar Cancho, visit in Pelagonija-start presentation for IME Team COR Laurent Bossavie and Jasminka Shopova (World Bank) Visit to the Bank Meeting MAMEI re access to Meeting Solar & Epicentar Restricted Call Discussion finance for MEI Working Dinner BEP and PDP 2109 review E4E Reg Panel Discussion DEC 5 BEP- Review of Unsolicited IME Proposals Global Entrepreneurship Internal Staff Meeting Week-Event
18 19 20 21 22 23 24 Mashav Certified Training M&E Review Coordination Meeting with Meeting Students-Faculty Meeting Point Pro for Veterinaries in Bitola Solar Staff Meeting Meeting with Training Mashav Certified Training Meeting with MAFWE with Budget Tracker Review Provider-Zarko for Veterinaries in Skopje MASHAV Wrap Up Meeting with Meeting with the Dean of Meeting with Vasko K. Staff Meeting - LAG Agro Lider Meeting Aneta from EVN re: Oscar and Startup Veterinary Faculty dev. Of project details Macedonia Meeting with Lence (from WFD Meeting-MoU Thanksgiving Lunch Round Table with Chamber the Prime Ministers's Office) of Craft
Meeting with Veterinary Dinner with MASHAV Meeting Damo re Vegefresh; Chamber; Dinner with Meeting Ekstra Fungi MASHAV
25 26 27 28 29 30 Field Visit with MAFWE Meeting with CEED; Meeting Finalizing Policy Dairy BSO Lobbying Training in BEP Presentation to David with Simona Sosolceva Recommendations cooperation with Epicentar and Nancy (Crimson) Finance Think-Panel Chamber of Craft-Staff MAMEI-Staff Meeting Filming in MTV studio Makam Trans Training for Meeting Logistics Officers MCC-Staff Meeting ECNWM-Staff Meeting MLA-Staff Meeting Meeting with Ljubomir Trajkovski Makam Trans-Staff Meeting
Finalizing Policy Paper for Finalizing Dairy White Paper Presentation on Dairy USAID-Holiday Reception 28th; M&E Meeting White Paper in front of Dairies Staff Meeting Meeting on WFD MoU 1 Consultation Group signing; Updated: Meeting Meeting E4E@MK Project Stem Academy + MAMEI re
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◄ November 2018 ~ December 2018 ~ nuary 2019 ► Sunday Monday Tuesday Wednesday Thursday Friday Saturday 1
2 3 4 5 6 7 8 Meeting Startup Macedonia Sano Presentation, MoU signing Makam Trans-Training for Meeting Israeli Ambassador Makam Trans-Training for Vemilk Logistics Officer Dan Oryan Logistics Officer Budget Review Meeting Verica (Inovativnost) MoU signing on WFD joint Meeting Suze from MTV, Meeting Jovan (CEED) Campaign Meeting Goran Lazarevski, Meeting Vladimir Despotovski
Meeting LK Raspberry Meeting on December 5th Event- Meeting with Akvaponika Meeting re: M&E O3, SAID Round Table on fighting grey Panel Discussion Bep Application economy in the craft sector Meeting IRN agro TTA Application review Coordinational meeting for Makam Trans-Training for Certificate Award Ceremony Logistics Officer Staff Meeting Meeting with Simon Avramovski- Meeting MASHAV & Israeli MAMEI-A2F Workshop Point Pro; Meeting with Paul Ambassador Weijers and Mark 9 10 11 12 13 14 15 Meeting with Mark Colecting M&E Data in Pelagonia WFD Analysis Meeting Meeting Korab Milk Wjite Paper Event region Preparations Feasibility Study follow up Meeting Field Visit-Prilep Meeting MoE re:WFD MoU Training in accounting - KPU Meeting Startup Macedonia
Meeting with Gabi from Okiteks Meeting Sashko Manakovski (FF) Meeting Lidija Chadikovska, Meeting Macedonia Stock Budget Discussion Meeting Goran El Te Inzenering, Exchange Staff Meeting Meeting Goce-MAMEI re: HRD Meeting Lactalis re: MoU, White Top 100 Companies ECNWM Meeting with Nebojsha from Paper Event Preparation MCGO IRN Agro M&E data Collection WFD Meeting Meeting with Solar for M&E System, Meeting Visar 16 17 18 19 20 21 22 Dairy Farmers O3&O1 Meeting Visit Kocani-sou Goso Vikentiev, B-REDI Indicators DQAs WFD Analysis Meeting, PSE Filming at RK TEP, Eko Visit one lead company and one Schedule Meeting Meeting E4E re:Kocani Shar and SANO apparel company in Tetovo Preparations od White Paper Event Meeting with Blazen Tolovski Field Visit on High Value Crops Potential on developing new Visit Amica Apparel PSE Initiative financial product Company in Probishtip ECNWM M&E System, Preparation O3 Meeting, CoP-DCoP Meeting Makam Trans-M&E System SDC Review Meeting meeting for the budget call
Meeting Jovan Despotovski from MAMEI M&E System MLA M&E System Certificate award ceremony-
Staff Meeting Chamber of Craft M&E System GEC-Applications Review MLA-Training for inspection 23 24 25 26 27 28 29 Planning weekly activities CEED-Application Review LAG Agro Lider-A2F Workshop LAG Agro Lider M&E System White Paper Presentation- Event MASIT-Application Review MFA-Application Review Meeting with Nobl Macedonian Stock Exchange- Startup Macedonia-Application Application Review Review WFD Meeting, Meeting with Magan Follow up on White Paper Mak Presentation Event-Preparations O2-Staff and O3 Staff Meeting 30 31 New Year's Staff Meeting
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