Promoting Private Sector Employment (PPSE)
The last phase of PPSE will continue to help enterprises in the Food and Natural Ingredients (FNI) and tourism sectors grow through increasing competiveness, product diversification and improving access to markets, thus creating jobs in Kosovo, with focus on women and minorities. Further, by improving sector coordination, PPSE improves public-private dialogue and achieves sustainable results.
Employment & economic development
- SMEs expand production and increase the quality of their offer by utilizing professional services.
- SMEs improve market presence and increase sales due to better sector organization and use of service
- SMEs invest in product development.
- SMEs and farms expand contracted production.
- SMEs use support services for better market access.
- Public and private sector players improve coordination, promotion and advocacy.
|Background||With the lowest GDP per capita in the region, Kosovo continues to have high poverty rate. The economic growth rate falls short to generate number of jobs needed to absorb the unemployed. Unemployment rates among youth (50%) and women (34%) are among the highest in Europe, while Roma, Ashkali and Egyptian community faces an unemployment rate of around 70%. Kosovo remains a consumption-oriented economy; with a large trade deficit (approximately 32% of GDP). Furthermore, the COVID-19 had a large negative impact on Kosovo’s economy, causing a GDP decline of 7% in 2020.|
Growing and resilient SMEs and Farms in the FNI and tourism sector that operate in the inclusive and consolidated economic sectors provide decent work and income opportunities for women and men in Kosovo.
By the end of 2025, 3,600 people will be employed (35% women and 10% minorities); 1,130 additional Full Time Equivalents (FTEs) jobs; average yearly net income of individuals will increase by CHF 1,057.
|Target groups||The direct target group of PPSE will continue to be SMEs for whom the project and its interventions are of high relevance in the Food and Natural Ingredients and tourism sectors. SMEs create jobs for the beneficiaries of the project – the unemployed with focus on women and minorities.|
Results from previous phases: By the end of 2020, measured as net additional employment of Full Time Equivalents (FTEs), 1,135 new jobs were created due to second phase interventions, out of which around 41% are women and 9% from minorities. These jobs generated 6,257,063 CHF income increase for the benefitting men and women through salary/wage. Further, net additional income increased by 2,610,960 CHF for 150 SMEs.
|Directorate/federal office responsible||
Implementing partners Swiss Contact and Riinvest Institute
|Coordination with other projects and actors||PPSE will align and look for synergies with donor projects e.g., USAID, GIZ, ADA, UNDP and EU. In the tourism sector, PPSE will more closely cooperate with the UNDP projects on tourism governance/strategies and cultural heritage. In the FNI sector, PPSE will more closely cooperate with the USAID Compete project, ADA SIRED project, SIDA Rural Development and Forestry project, as well as with the GIZ related projects such as CETEP and MAPs value chain project.|
|Budget||Current phase Swiss budget CHF 5’600’000 Swiss disbursement to date CHF 2’700’445 Total project since first phase Budget inclusive project partner CHF 5’600’000|
|Project phases||Phase 3 16.11.2021 - 15.11.2025 (Current phase) Phase 2 16.11.2017 - 15.11.2021 (Completed) Phase 1 01.04.2013 - 15.11.2017 (Completed)|