COVID-19 Investment Response - EU4BUSINESS RECOVERY

This Multi-Donor Action is jointly co-financed by the European Union, the German Federal Ministry for Economic Cooperation and Development and implemented by GIZ, UNDP and ILO. The overall objective of the Action is to contribute to support to Bosnia and Herzegovina in mitigating the economic effects generated by the COVID-19 pandemic. The specific objective (outcome) of the Action is twofold: 1. Micro, Small and Medium Enterprises (MSMEs), agri-food and tourism operators, entrepreneurs and farmers ensure business continuity despite the negative effects of COVID-19. 2. Innovative start-ups created as a response to the COVID-19 crisis. Considering the objectives stated above, the Action supports businesses in five economic sectors: metal processing, wood processing, agri-food processing, textiles/apparel/footwear and tourism. Support is provided along four intervention areas that create a coherent approach in reaching the set objectives: • implementation of occupational safety and health (OSH) measures in supported companies as a condition for business continuity; • product and business innovation and reorganization/localization of the supply chains to maintain the functioning and increase competitiveness of MSMEs, agri-food and tourism operators; • start-up development to ensure employment of unemployed persons, women and other vulnerable groups; • a Help Desk system to provide financial and legal advice to MSMEs on the one hand, and to entrepreneurs and start-ups on the other hand. As an immediate priority, the Action should result in increased capacities of MSMEs for ensuring business continuity and improvements in operations for development of new products and services and access to new markets. The recovery of supply chains will result in increased vertical integration, automation, digitalisation and efficient use of resources. The Help Desk system will be established to provide information to MSMEs, entrepreneurs and start-ups on i) legal restrictions to business activities in the sectors concerned due to COVID-19 and ii) how to access (crisis-related) funding by public institutions, international donors and development banks. Ultimately, the assisted companies should become more resilient by adapting more sustainable business models, diversifying product portfolios and markets while maintaining the current workforce and gradually creating new jobs. Over the course of 30 months the Action will support at least 150 businesses to re-launch their business activities and retain more than 1,000 jobs. At least 100 innovative start-ups will be created.

Project symbol

BIH/20/01/EUR

Admin unit

DWT/CO-Budapest

Start date

01/01/2021

End date

31/12/2023

Total allocation

3931980

Total expenditure

Status

Closed

3886488

Development Partners

European Commission, DG for Neighbourhood and Enlargement Negotiations

Country/Countries

Bosnia and Herzegovina

Outcomes

Outcome 4: Sustainable enterprises for inclusive growth and decent work