Exterior view of the German centre for jobs, migration and reintegration ( DIMAK ) on the opening day in Pristina, 28.05.2015

Core area “Training and sustainable growth for decent jobs” Improving the climate for investment

Sustainable structural changes – such as the privatisation of the economy, entrepreneurial initiative and the development of medium-sized enterprises – will be of key importance for Kosovo's further development.

The country's economic recovery is driven primarily by micro, small and medium-sized enterprises (MSMEs). In order to help these businesses become more competitive – and, thus, create more jobs – Germany is offering them sector-specific advice as part of its development cooperation activities.

Fostering integration into the European market; improving vocational training

As part of its technical cooperation, Germany is providing advice to micro, small and medium-sized enterprises in the agricultural sector and the manufacturing industry. For example, enterprises are provided with relevant information regarding the processes, product specifications and certifications with which they need to comply in order to export their products more easily to the EU. Public institutions, chambers of commerce and business federations are receiving advice on how to tailor their services to the needs of developing businesses.

Kosovo's education system is not properly able at the moment to equip young people with important skills or to prepare them for entry into the labour market. Therefore, the BMZ is working with the ministries responsible to help them improve careers advice services and the quality of vocational training and further training, and adapt educational offerings more closely to the needs of the labour market. To this end, new legislation and strategies are being evolved, professional and managerial staff trained, school development plans drawn up, school curricula adjusted and digital skills improved.

One major project is the conversion of what was formerly the Prizren military camp into an innovation and training park. The park is to attract chiefly businesses involved in information and communication technologies, in the processing of agricultural products and food, and in culture and the creative industries. In addition, the park is to offer business-related and other services, as well as premises for start-ups and vocational training institutions. The German armed forces had been stationed in Prizren for nearly twenty years. The camp was closed at the end of 2018 and handed over to the Kosovar government.

Easier access to loans

Acting on behalf of the BMZ and in collaboration with USAID, Germany's KfW Entwicklungsbank has launched the Kosovo Credit Guarantee Fund (KCGF) in order to facilitate access to financial services for micro, small and medium-sized enterprises. The Fund provides credit guarantees for micro, small and medium enterprises by sharing the credit risk with the lending banks. The European Union, the World Bank and Sweden are now also contributing to the Fund.

To date, some 6,500 businesses have benefited from the Fund, receiving roughly 245 million euros in loans and enabling them to create some 19,500 new jobs.

As at: 11/03/2022