Sustainable Inclusive Growth in Mountainous Armenia (SIGMA)

Through an innovative intervention using the market systems development approach, SDC aims to generate additional income and decent jobs in rural mountainous areas of Armenia, where agriculture and tourism are the main source of income. Together with private and public stakeholders, at the local and national levels, the project will invest in selected value chains by promoting inclusive, climate smart, and sustainable economic growth in its first phase until end 2026.

Pays/région Thème Période Budget
Emploi & développement économique
Création d'emplois
Développement de petites et moyennes entreprises
Soutien commerciale & inclusion économique
01.06.2022 - 30.11.2026
CHF  4’860’000
Contexte Armenia’s economy posted a 12.6% growth rate in 2022 driven by the gradual increase in consumption and export in recent years. The GDP per capita increased by 55.7% within last two years reaching to USD 7’014.2 in 2022. At the same time, the country's socio-economic sphere is characterized by sharp inequalities and poverty (26.4%) especially in the mountainous rural areas. Moreover, there are significant Climate Change- related issues regarding to the use of resources in Agriculture and Tourism. For example, 15 to 34% reduction is estimated in the productivity of irrigated cropland due to a projected 24.4% reduction in river flows. The development and application of innovative, sustainable and inclusive practices in the agriculture and tourism sectors become key to overcome poverty and achieve sustainable use of natural resources.
Objectifs The overarching goal of the project is to reduce poverty and inequality in mountainous areas by creating higher incomes and employment opportunities within environment and climate friendly, inclusive rural market systems. 
Groupes cibles The key target groups and beneficiaries of SIGMA are the households engaged in farming, small agribusinesses, and tourism businesses, and living in mountainous communities of Shirak, Lori, Tavush, and Gegharkunik regions. Overall, 2’407 households are expected to directly benefit from the SIGMA Phase 1 resulting to increased income or new/better employment for 1’313 rural low-income households, 436 employees, and a further 658 households through crowding in. 
Effets à moyen terme Outcome 1: Farmers, small agribusinesses, and tourism businesses increase their net additional income and employ more people. Outcome 2: Market systems of selected value chains are strengthened and favour sustainable and inclusive economic growth at national and local levels.

Principaux résultats attendus:   Output 1.1. Catalysts (primarily private companies) provide products/services to and develop new business linkages with farmers, small agribusinesses, and tourism businesses. Output 1.2. Farmers, small agribusinesses, and tourism businesses in the target regions are capacitated and itegrated into domestic and cross-border market systems of selected value chains. Output 2.1. Influencers (state institutions, business associations, etc.) support sustainable and inclusive rural growth and have capacities to take measures that improve the policy and operating environment. Output 2.2. Market system linkages between actors are operational by ensuring that farmers, small agribusinesses, and tourism businesses increase their resilience to climate change, diversify and adopt climate-smart approaches, minimize their adverse environmental effects, and mainstream more inclusive practices.

Principaux résultats antérieurs:   The inception phase of SIGMA shows that various socioeconomic factors, including inequalities among groups (e.g., women, youth, and displaced individuals), reliance on remittances, and susceptibility to environmental changes, are significant impediments for the development of market systems in Agriculture and Tourism value chains. The challenges are even critical across the eastern boarder of Armenia due to security threats. The assessment of market systems in each SIGMA-relevant region revealed various challenges and opportunities for development and helped to scope the respective interventions. The highlighted challenges are also in line with insights and lessons learned from the SDC-funded ongoing Living Landscapes for Market Development (LILA) project and the closed Livestock Development in Armenia (2006-2021) project.

Direction/office fédéral responsable DDC
Partenaire de projet Partenaire contractuel
ONG internationale ou étrangère
Secteur privé
  • Other international or foreign NGO North
  • Secteur privé étranger Nord
  • Sectreur privé étranger Sud/Est
  • Contract partner - DAI Global UK (DAI) and its branch in Armenia, AMPERA Consulting Company (local partner)

Coordination avec d'autres projets et acteurs Coordination and collaboration are envisaged with SDC-funded projects in Armenia and Georgia such as MAVETA, LILA, LSG, WEE (regional), ALPC2 (GE). Moreover, cooperation with public institutions incl. Ministry of Economy (MoE), the Ministry of Territorial Administration and Infrastructure (MTAI), regional governorates, target municipalities, relevant professional organizations; donor-funded projects, NGOs, and foundations will be sought․
Budget Phase en cours Budget de la Suisse CHF    4’860’000 Budget suisse déjà attribué CHF    1’346’739 Projet total depuis la première phase Budget de la Suisse CHF   720’000 Budget y compris partenaires de projet CHF   12’000’000
Phases du projet Phase 1 01.06.2022 - 30.11.2026   (Phase en cours)