Phase 3

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«Bai Alai» Small Business and Income Creation in Alai and Chon-Alai

Project completed
Alai and Chon Alai are two of the poorest regions in Kyrgyzstan. The project aims at increasing economic inclusion of producing households through increased income and employment, with the focus on women and youth. During this exit phase (III) the project capitalizes and disseminates good practices in apiculture and cattle, and continues activities handicraft and tourism value chains, until phasing out in May 2024.

Country/region	Topic	Period	Budget
Kyrgyzstan	Employment & economic development Agriculture & food security SME development Agricultural services & market	01.06.2022 - 31.05.2024	CHF 1’000’000

The project in brief

Background

Alai and Chon Alai are mountainous and remote districts of Osh province in southwestern Kyrgyzstan, bordering with Tajikistan and China, with a total population of 126,511. Due to harsh climatic conditions coupled with high altitude, living conditions in these regions are difficult. Poverty rate in project areas decreased from 54% in 2017 to 40% in 2021. Main occupation of local population is livestock, crop farming agriculture and tourism. Providing strategic support to local value chains and local market system development is contributing 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.

Target groups

3,900 producing farming/entrepreneurs households (total of 19,490 beneficiaries - 1,000 are new beneficiaries), incl. females: 50%; youth: 25% in promoted value chains, in Alai and Chon-Alai districts.
Local cooperatives and business associations.
Lead firms, microfinance institutes and advisory service providers.
Municipal, district, provincial administrations and councils.

Medium-term outcomes

Building and capitalizing on BAP activities/initiatives, lessons learnt and partnerships from previous phases, in its exit phase, BAP III will enable MSMEs and producers within selected value chains, including women and youth to increase their sales sustainably.

Results

Expected results:

To achieve overall goal and outcome, BAP III will work on the sustainability of key market players in two value chains (handicraft and tourism) and facilitate policy dialogue between public and private stakeholders as well as sustain systemic changes in the project region.

Expected outputs in these value chains are:

1) MSMEs in the selected sectors, including women and youth led, have sound business management and sustainable market access;

2) Sectoral local framework conditions are improved by inclusive local and regional level dialogue fora.

Results from previous phases:

During phase II, Bai Alai Project (BAP):

3,695 producing farming/entrepreneurs households (or 18,490 beneficiaries) increased their income significantly;
enabled and generated additional sales for USD 5,560,332 or 27% above phase target (USD 4,365,177);
increased net income of cumulative amount of USD 3,361,336 or 97% above the phase target of USD 1,700,000.

Directorate/federal office responsible

SDC

Project partners

Contract partner
Swiss Non-profit Organisation

HELVETAS Swiss Intercooperation

Other partners
Helvetas Swiss Intercooperation and Aga Khan Foundation (sub-contracted)

Coordination with other projects and actors

SDC-(co-)funded Sustainable Economic Development project (implemented by GIZ) on local economic development.
SECO-funded TAs: -Small Business Initiative (on business advisory services); - Trade Promotion in T&C (on market linkages); and - Winter Tourism Project (on tourism).

Budget

Current phase Swiss budget CHF 1’000’000 Swiss disbursement to date CHF 950’000

Project phases

Phase 3 01.06.2022 - 31.05.2024 (Completed)

Phase 2 01.06.2018 - 31.05.2022 (Completed) Phase 1 01.05.2014 - 31.05.2018 (Completed)

Further technical details

Sector according to the OECD Developement Assistance Commitiee categorisation	INDUSTRY AGRICULTURE
Sub-Sector according to the OECD Developement Assistance Commitiee categorisation	Small and medium-sized enterprises (SME) development Agricultural services
Cross-cutting topics	The project also supports partner organisation improvements
Aid Type	Mandate with fiduciary funds
Project number	7F08418