Increasing Market Employability (IME)


North Macedonia’s economy is characterised by persistently slow growth rates as a result of low productivity due to outdated practices and scarce labour force due to high emigration. To address this, Switzerland, through its Increasing Market Employability project, supports small and medium-sized enterprises in sustainable agribusiness and tourism to become more competitive and environmentally sustainable by improving their products and services, while creating decent employment. The duration of the project is extended until 31.12.2026.

Country/region Topic Period Budget
North Macedonia
Employment & economic development
SME development
Employment creation
Rural development
01.09.2024 - 31.12.2026
CHF  2’700’100
Background The economy of North Macedonia struggles to create decent employment, to meet European quality and environmental standards and to be competitive at the European markets. This contributes to the significant emigration, especially among youth (15-29) and people from the regions. Nevertheless, if constraints in the local market systems are addressed, some sectors (sustainable agribusiness and tourism) have good prospects for accelerated growth, resulting in the generation of decent employment and higher income.
Objectives Small and medium-sized enterprises in agribusiness and tourism are more competitive, providing decent employment and contributing to the country’s green transition.
Target groups

The end beneficiaries are people living in the regions outside the capital, in particular youth (15-29). The project enhances their opportunity for decent employment and increased income.

The project targets small and medium-sized enterprises (producers and service providers) in sustainable agribusiness and sustainable tourism and stakeholders that contribute to a more conducive business environment i.e. associations, economic chambers, government agencies, business service providers, financial service providers, etc.

Medium-term outcomes

Outcome 1: Small and medium-sized enterprises in agribusiness and tourism adopt green practices, improve the quality and quantity of their products, and have better access to markets.

Outcome 2: Market system actors in agribusiness and tourism jointly address sectorial challenges and improve their business environments.

Results

Expected results:  

  • Suppliers are well integrated in the value chains of anchor companies, ensuring products and services demanded by European and other markets
  • Companies apply environmental standards required by European and other markets
  • Market system stakeholders advocate for and engage in public-private dialogue on economic and green transition reforms
  • Stakeholder alliances developed to address market system challenges
  • Existing, new, and/or improved funding mechanisms are identified to enable business development


Results from previous phases:   IME Phases 1 and 2 contributed to 5,300+ jobs (direct and indirect), out of which 51% filled by youth (15-29) and 41% by women. The companies in the selected sectors generated income of nearly CHF 20 mio. The most significant results were achieved in the agribusiness and the sustainable tourism sectors, hence the exit phase includes them, in particular focusing on agribusiness.


Directorate/federal office responsible SDC
Project partners Contract partner
International or foreign NGO
  • Other international or foreign NGO North
  • Palladium Europe B.V.


Coordination with other projects and actors

SDC: Modernization for Sustainability and Decent Jobs, Education for Employment, Groundwater Management Use and Protection Programme, Parliament Support Programme, Enhancing Municipal Councils, Strengthening Municipal Resilience

SECO: SIPPO, Swiss Entrepreneurship Programme

USAID, EU Delegation, SIDA, EBRD, The World Bank Group

Ministry of Agriculture Forestry and Water Economy, Ministry of Culture and Tourism, Ministry of Economy and Labour, National Development Bank, etc.

Budget Current phase Swiss budget CHF    2’700’100 Swiss disbursement to date CHF    700’000 Total project since first phase Swiss budget CHF   13’780’147 Budget inclusive project partner CHF   16’686’100
Project phases Phase 3 01.09.2024 - 31.12.2026   (Current phase) Phase 2 01.08.2019 - 30.06.2024   (Completed) Phase 1 01.11.2013 - 31.07.2019   (Completed)