For the purpose of recovery of BiH economy from effects caused by the COVID-19 viral pandemic, the European Union approved EUR 18 million worth emergency support to micro, small and medium-sized enterprises. These funds will be available through two new projects, namely EU4BusinessRecovery, worth EUR 13.7 million provided by the European Union and the German Government, and EU4AGRI-Recovery, whose implementation started on 1 January this year. The projects are complementary to the two on-going projects, EU4Business (financed by the European Union and the German Government) and EU4AGRI (financed by the European Union), worth over EUR 36 million and aiming to strengthen BiH economy and ensure retention of existing and creation of new jobs.
EU4BusinessRecovery: EUR 13.7 million of support to entrepreneurs combating effects of COVID-19
As part of support in mitigating the economic effects generated by the COVID-19 pandemic in Bosnia and Herzegovina, more than 1,000 jobs threatened by effects of the pandemic will be retained, and at least 100 new jobs will be created as a result of the new „EU4BusinessRecovery“ project of the European Union and the German Government. The project will support micro, small and medium-sized enterprises to continue their business operations and retain jobs, especially supporting women entrepreneurs, young people and other vulnerable groups to start up their own businesses.
Grants will be provided for the companies based on public calls for proposals in 5 sectors: metal and wood processing, textiles, apparel and footwear, agri-food, tourism and entrepreneurship. The project will also provide micro, small and medium-sized enterprises with advisory services and investment incentives to ensure business continuity and creation of innovative start-ups.
The project is co-financed by the European Union with EUR 13 million from IPA 2020 within the Special Measure in support to Bosnia and Herzegovina in recovery from the COVID-19 pandemic and by the Federal Republic of Germany with EUR 700,000 within a timeframe of 30 months. The project will be jointly implemented by GIZ, UNDP and ILO from January 2021 to June 2023.
EU4AGRI-Recovery: EUR 5 million for recovery and long-term resilience of agriculture and rural areas in Bosnia and Herzegovina
In addition to the support to micro, small and medium-sized enterprises, the European Union also launches a support measure to mitigate negative economic effects caused by the COVID-19 pandemic in agri-food sector and rural development. The new project „EU4AGRI-Recovery” will provide direct support to farmers, businesses and rural tourism operators to develop long-term resilience in the sector, retain existing and create new jobs, especially for women and youth. Within the project, more than 400 jobs will be retained, while at least 100 new jobs will be created with the focus on environment and sustainable agriculture. Additionally, establishing of 20 new innovative and environmentally responsible start-ups will be supported.
Grants will be provided based on public calls for proposals to finance projects for agri-food businesses and rural tourism operators. Support will be provided for business innovations and product development, reorganization of the supply chains to maintain the functioning, increase competitiveness and strengthen business sustainability, and for the development of new start-up businesses in the sector.
The project is financed by the European Union with EUR 5 million from IPA 2020 within the Special Measure in support to Bosnia and Herzegovina in recovery from the COVID-19 pandemic within a timeframe of 30 months. The project will be jointly implemented by UNDP and Czech Development Agency (CzDA) from January 2021 to June 2023.
Information about projects, activities, and how to apply for grants of the European Union as part of the two new projects, as well as about EU4Business and EU4Agri can be found at https://eu4business.ba/ i https://eu4agri.ba/ .
