Project : The Competitiveness and Export Readiness Project (CERP)
Loan Number: 6035-XK
About the Project:
The Ministry of Trade, Entrepreneurship and Industry is responsible for the implementation of the Competitiveness and Export Readiness Project (CERP) of € 14.3 million, financed by soft loan from the World Bank. The purpose of the CERP project is to support product certification for export markets, strengthen the capacity of Export-Oriented Businesses, and improve their Competitiveness. The project has been restructured to respond to the changing needs of MSMEs as a result of the situation created by COVID-19.
The CERP project consists of two components:
Sub-component 1.1: Support Micro, Small and Medium Enterprises (MSMEs) to improve Competitiveness and Export Readiness (€ 10.4 million) through the Matching Grants Program (MGP).
Sub-component 1.2: Reforming the business inspection system
Matching Grants Program Objectives
The Matching Grants Program (MGP) operates under the first sub-component of the CERP Project (Competitiveness and Export Readiness). The objective of the MGP is to support micro, small and medium enterprises with export potential: (i) to meet the requirements for the implementation of standards and certification of products intended for export markets, (ii) to finance equipment (production machinery) to enhance export readiness capabilities, (iii) finance equipment used for conformity assessment bodies, (iv) support access to Business Development Services (BDS) / Training, and (v ) Small digital enhancement equipment. MGP-funded business support activities can facilitate access to knowledge on critical areas to respond to the COVID-19 pandemic such as improving e-commerce skills, business continuity issues, improving and advancing Digitalization for Businesses.
Key features of the Matching Grants Program include the following activities:
- Activity 1 - Standards and certification of products
- Activity 2 - Machinery / equipment
- Activity 3 - Equipment for conformity assessment bodies
- Activity 4 - Access to services and training for business development
- Activity 5 - Small digital improvement/enhancement equipment
Standards and product certification
MGPs for Standards Implementation and Product Certification are defined as grants to co-finance MSMEs’ costs for obtaining International Standards and Products Certification. The financing to be provided by the MGP can cover a maximum of 90 percent of the costs for obtaining these standards and certifications, up to € 40,000. A minimum of 10 percent of the cost must be covered by the applicant, certified by the bank account. Eligible costs to be financed by MGP include the costs of Product Certification (testing, verification, certification and inspection) quality audits, standards implementation (for example, quality, environment, training, etc.)
(b) –Machinery / Equipment
Machinery / Equipment Implementation is defined as a grant to co-finance the costs of MSMEs to purchase production equipment (machinery) in order to increase export capacity / readiness, for businesses affected by COVID-19. The business community has identified that limited production capacity is among the main barriers to exporting to international markets. The financing to be provided by MGP can cover a maximum of 50 percent of the cost of machinery / equipment for medium-sized firms and up to 70 percent for micro and small firms, provided that the Grant amount does not exceed € 50,000.
(c) –Equipment for conformity assessment bodies
Implementation of Equipment for Conformity Assessment Bodies is defined as Grants for Co-financing MSMEs costs to purchase equipment used for conformity assessment, which will contribute to the development of quality infrastructure and indirectly contribute to the conformity assessment of Kosovo products before entering domestic and foreign markets. The financing to be provided by MGP can cover a maximum of 50 percent of the cost of equipment for medium-sized firms and 70 percent for micro and small firms, provided that the Grant amount does not exceed € 50,000.
(d) Access to Business Development Services and Training
The MGP may cover a maximum of 90 percent of the cost of BDS / training, up to € 10,000 for a single application from an MSME, or up to € 25,000 for a maximum of three applications. Group trainings or trainings conducted through Business Associations will be financed up to a maximum of € 25,000 per year. Business associations may also be contracted to provide firm-specific training or to provide links to international firms. Eligible costs to be financed include advice on various business needs, such as marketing, commissioning of machinery (technical acceptance, supervision), business plan development, financial management and skills improvement for MSME employees - for example, costs to finance training for MSME staff.
(e) Small digital improvement/enhancement equipment
MGP can cover a maximum of 70 percent of the cost of small digital enhancement equipment, up to € 5,000. Small digital enhancement equipment should contribute to the improvement of the MSME product / service, the creation of a new product / service or the improvement of the production process in the context of the approved Project. The equipment needed to complement BDS / training plans to respond to the COVID-19 crisis will also be eligible.
Sub-component 1.2: Reforming the business inspection system
The reform of the Inspection system is aimed at reducing the administrative burden for businesses, thus increasing the efficiency of inspection services, by providing:
- Electronic data management system, E-inspectorate;
- Data Interchange System, Interoperability and ICT System Interaction
- Support for professional capacity building of inspectors.