"Bai Alai" Small Business and Income Creation in Alai and Chon-Alai
The remote Alai and Chon Alai disctricts of mountainous Southwest Kyrgyzstan are struck by a very high incidence of poverty, low levels of economic production and limited income generation opportunities. The project will increase economic inclusion of producing households by fostering development of local production in cattle, apiculture, tourism and handcraft sectors. Producers and entrepreneurs in these sectors will be linked to respective markets hence imporving their value chains.
Employment & economic development
Agriculture & food security
Agricultural services & market
- HELVETAS Swiss Intercooperation
Sector according to the OECD Developement Assistance Commitiee categorisation INDUSTRY
Sub-Sector according to the OECD Developement Assistance Commitiee categorisationIndustrial policy and administrative management
Small and medium-sized enterprises (SME) development
Small and medium-sized enterprises (SME) development
Aid Type Mandate with fiduciary funds
|Background||The Alai and Chon-Alai disctricts of Osh province in southwestern Kyrgyzstan are remote mountainous areas with difficult life conditions and a very high incidence of poverty. The main occupation of the local population is in livestock, agriculture and tourism. The key constraints for local economic development in the region are the low productivity levels, low production quality and the absence of fully integrated and organised value chains due to a lack of appropriate inputs and market orientation, limited technical knowledge as well as a lack of access to critical service providers and financing partners. Providing strategic support to local value chain and local market system development is expected to contribute to economic inclusion and to generate sustainable household incomes in the region.|
|Objectives||Increased economic inclusion of producing households in Alai and Chon-Alai in particular also of women and youth.|
Rural population, with a special attention on women and youth, and more broadly rural households, in their role as livestock owners (more than 90% of households), potential and already active tourism service providers, handicraft makers and/or beekeepers.
Local cooperatives and business associations.
Lead firms, microfinance institutes and advisory service providers.
Municipal, district and province administrations and councils.
1) Local producers and entrepreneurs, including women and youth, increase sales within the selected value chains; and
2) Sustainable local business support structures provide services available to all producers and entreprenerus within selected value chains, including women and youth.
To achieve the overall goal and outcomes, the project will put its focus during the second phase on the following most promising value chains in Alai and Chon-Alai disctricts: i) cattle; ii) apiculture; iii) tourism; and iv) handicraft. The expected outputs in these value chains are:
1) Productivity increased;
2) Quality standards introduced and enhanced;
3) Market access established for producres and entrepreneurs, including women and youth;
4) Advisory services offer adapted to local needs, including for woment and youth;
5) Financial products are adjusted to local conditions, including for women and youth; and
6) Local business support dialogue fora are strengthened and include both men and women.
Results from previous phases: During Phase 1, the Bai Alai Project enabled 1'829 households to increase their income by USD 300 or 15.20% average (benfitting an estimated 11'000 people or 10-11% of the residing population) by facilitating the production and marketing of goods at improved qualitiy and/or quantity such as cashmere, livestock, vegetables, eggs, honey, fruits, handicrafts, bakery products and carpentry. The project success was rated moderately satisfactory provided that despite the positive results, it missed its targets. However, it has to be noted that Phase 1 of the project was implemented in a very challenging environment for the country's economy (accession of Kyrgyzstan to the Eurasian Economic Union and the political and economic opening of Uzbekistan). The capacity and knowledge built with producers and entreprenueurs as well as the partnerships and structures estbalished with key market players and stakeholders such as cooperatives, the Alai business Women Association, the Community-Based Tourism (CBT) network of Alai, pasture user committees and others, will ensure sustainability and long-term effects of the interventions.
|Directorate/federal office responsible||
Swiss cooperation with Eastern Europe
Swiss Non-profit Organisation
Consortium consisting of Helvetas Swiss Intercooperation (consortium lead) and the Aga Khan Foundation
|Coordination with other projects and actors||
SDC-(co-)funded Sustainable Economic Development project (implemented by GIZ) and Public Service Improvement Project (on local economic development and local governance).
SECO-funded Small Business Initiative (on business advisory services), Trade Promotion project (on market linkages) and planned project on winter tourism.
Aga Khan Foundation subsidiaries First MicroFinance Company and the Accelerator for Prosperity (on access to finance).
|Budget||Current phase Swiss budget CHF 3’100’000 Swiss disbursement to date CHF 2’897’216|
Phase 2 01.06.2018 - 31.05.2022 (Completed)Phase 1 01.05.2014 - 31.05.2018 (Completed)