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lncreasing Market Employability in North Macedonia

Project completed
Biljana, co-founder of The Good Earth organic cooperative, holding a basket of organic fruit and vegetables.
Biljana, co-founder of The Good Earth organic cooperative. © SDC

Unemployment in North Macedonia is particularly high, especially among young people and women, and a large segment of the population lives in poverty. That is why Switzerland is involved in developing business growth and improving the quality of products and services by helping SMEs in certain sectors of the economy.

Country/region Topic Period Budget
North Macedonia
Employment & economic development
Employment creation
01.11.2013 - 31.07.2019
 CHF  7’500’000
Background Despite government‘s focus on economic development, the economy of North Macedonia still remains far behind European countries. It fails to create the necessary growth for sufficient job creation, and this results in a significant brain drain and poverty. Nevertheless, if systemic constraints are addressed, some sectors (Tourism & Hospitality, Creative Industries, and Green Economy) show good prospects for accelerated growth and job generation.
Objectives

More working-age women and men, in particular the young, are engaged in sustainable, decent employment or self-employment and/or are earning higher incomes.
Target groups

The end beneficiaries are the unemployed and underemployed young. The project enhances their possibility for decent jobs and increased income. The project targets SMEs (producers und service providers) in the three selected sectors and stakeholders that provide a more conducive business environment i.e. associations, government agencies, business development service providers, financial service providers, accelerators, NGOs, education providers, etc.
Medium-term outcomes
  • Enterprises in Tourism & Hospitality, Creative Industry and Green Economy grow by expanding the existing market und accessing new market opportunities
  • Access to improved services (skills support functions, financial services) is enhanced for enterprises in the three sectors
  • The policy und regulatory framework is more conducive for private sector growth in targeted sectors 
Results

Expected results:  

  • Almost 500 new and/or improved services and products available on the market
  • Over 100 businesses have adopted gender and youth friendly HR management policies
  • 540 participants have been trained in non-formal courses offered by at least 12 service providers
  • 10 financial products have been promoted
  • 20 working meetings between public and private sector have taken place


Results from previous phases:  

Selection of implementing partners through an open tender, establishment of project implementation unit and capacity building for staff and partners, analyses and confirmation of potential of the three sectors, full research and developed strategies for one destination and two sub-sectors (Mavrovo, Sustainable Agriculture and IT and Software) and implementation of pilot interventions.
Directorate/federal office responsible SDC
Credit area Swiss cooperation with Eastern Europe
Project partners Contract partner
International or foreign NGO
Private sector
  • Other international or foreign NGO North
  • Foreign private sector North


Budget Current phase Swiss budget CHF    7’500’000 Swiss disbursement to date CHF    7’330’716
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)

  • Sector according to the OECD Developement Assistance Commitiee categorisation OTHER SOCIAL INFRASTRUCTURE AND SERVICES
    Sub-Sector according to the OECD Developement Assistance Commitiee categorisation
    Employment policy and administrative management
    Cross-cutting topics The project takes account of gender equality as a cross-cutting theme.
    Type of support Official development assistance (ODA)
    Type of collaboration Bilateral cooperation
    Finance type Aid grant
    Aid Type Mandate with fiduciary funds
    Mandate without fiduciary fund
    Tied/untied aid Untied aid
    Project number

    7F08181

In 2013, more than half of young in North Macedonia were affected by unemployment and the poverty rate remained high. Despite a variety of government strategies put in place, the results to date appear to be limited. Almost one-third of young Macedonian graduates succumb to brain drain, prompted by low salaries, poor career prospects and an uncertain future. 

In line with the government’s programme, the SDC is aiming to revitalise the local economy by working on the causes that prevent jobs being created. To this end, it supports a project that seeks to ensure sustainable business growth and, indirectly, boost employability. 

Support for certain sectors 

The SDC focuses on specific sectors in order to establish better cooperation and coordination among the different stakeholders. It helps companies access a range of skills, technologies and know-how, and sets up further training courses to make sure that the qualifications and capabilities people have match the needs of the job market. The project also includes activities to improve framework conditions for businesses and boost demand for local products and services. It ensures that SMEs in the organic farming, tourism and ICT sectors will be able to benefit from better technical support and professional practices. The project will also focus on including women and young people.

Organic farming and ICT 

In the ICT sector, the government of North Macedonia is seeking to develop opportunities for local companies providing online services, such as in its administrative bodies and healthcare service. This requires skilled labour, which is why the project focuses mainly on training workers – particularly young people – in line with market needs. It also helps local businesses to enter the economy.

In the organic farming sector, the project aims to strengthen this niche market through promotional activities and providing technical support. In the capital Skopje, there has been a recent trend in favour of organic products according to local consumers. 

Suzanna Dimitrievska, a farmer, threw herself into the organic venture. With help from the SDC project, she was able to find high-quality seeds to grow beans and also received good advice. Now she hopes that she can even export to Switzerland, if the beans meet the standards that are required. Suzanna also shares her experiences and know-how with other local farmers.

Tourism 

Another project goal is to attract more visitors to North Macedonia by capitalising on the country’s cultural heritage – improving the provision and delivery of services and fostering linkages between hotels, tourist services, municipalities and agencies. These diverse activities are concentrated in three tourist destinations – Mavrovo, Ohrid and Kruševo. Because the offers in these destinations depend on the season, local companies are supported and encouraged to put forward ideas for off-season services. 

The SDC’s project supplements the government of North Macedonia's strategy to increase jobs in the tourism sector and is expected to help the selected businesses generate an additional CHF 15 million in revenue by April 2019.

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Last update 03.01.2021