Objective: Generate additional income and employment in rural areas of Mongolia by promoting added value creation in the seabuckthorn and sheep wool value chains.
Duration: September 2015 up to August 2018. A second phase of 3 years is possible depending on the outcomes of the first phase.
Locations: Ulaanbaatar, Arkhangai (sheep wool) and Uvs (seabuckthorn) Aimags.
Funding organization: Federal Ministry of Economic Cooperation and Development of Germany (BMZ).
Project partners: Mongolian National Chamber of Commerce and Industry (MNCCI) and Association of German Chambers of Commerce and Industry (DIHK).
Project implementing organizations:
Further partners in project implementation:
History of cooperation between MNCCI and DIHK:
The organizations look back at a long-standing history of collaboration. Between 1999 and 2005, the partnership focused on organizational development of MNCCI, especially on services development, on providing business trainings and on the establishment of regional chambers. A follow-up project conducted between 2006 and 2013 supported regional chambers as drivers of local economic development. As a result of that project, the number of regional chambers grew from 15 to 21 and the overall membership of the regional chambers increased from around 950 in 2006 to almost 2,200 in 2012. Furthermore, 450 (mostly part-time) jobs were created in rural businesses and around 2,000 families benefitted from an increase of income.
How we work
With the support of the regional chambers of commerce and industry in Uvs and Arkhangai, local SMEs formed cluster groups in the fields of seabuckthorn and sheep wool. The cluster groups are composed of cultivators (seabuckthorn), herders (sheep wool), and processing companies as well as support organizations (local associations, banks as well as different branches of the aimag administration). The task of the clusters is to identify the sector needs and to develop relevant actions. In implementing these actions, the productivity of primary producers or processors is enhanced, product quality according to good agricultural and good manufacturing practices is improved, and new products are developed and marketed. Proposed actions are discussed during annual workshops with all relevant stakeholders. The most promising actions are selected and supported by the partnership project through consultation and training, research and development as well as co-financing of equipment to a limited extent. Generally, this support is given to cluster groups and relevant sectors in Uvs and Arkhangai, never to individual companies. The cluster groups apply for support with the project and implement actions themselves. Constant coaching, monitoring and evaluation by the project team helps to ensure a high implementation quality.