Training workshop for future welders at the Hasu Megawatt training centre, Ulan Bator, Mongolia

Core area “Sustainable economic development, training and employment” Improving the general conditions, training skilled workers

Mongolia’s resources include coal, copper, gold, many different minerals and ores, and also rare earth metals. The latter are needed for the manufacture of TV and computer monitors, wind power plants, energy-saving light bulbs and medical equipment, for example.

In a bid to reduce the dependence of the country's economy on the export of these raw materials and make Mongolian products more competitive, the government wants to get more mineral resources processed by local companies and to diversify the economy.

Transparency and cooperation in extractive industries

Mongolia joined the Extractive Industries Transparency Initiative (EITI) in December 2005. The EITI process is designed to ensure that the proceeds of resource extraction arrive in the public coffers by a traceable route and are then used to reduce poverty.

Mongolia is the first country with which Germany has concluded a raw materials partnership. The agreement, signed in 2011, aims to promote closer cooperation in the fields of resources, technology and industry. German businesses are to be supported in their efforts to guarantee their supply of raw materials. At the same time, economic development in Mongolia is to be promoted with a special focus being put on fostering sustainability in the extractive industries.

German vocational education and training activities

The aim of German development cooperation activities is to improve the general conditions for sustainable, inclusive and broad-based economic growth. That is why the BMZ is engaging in measures to promote practice-oriented vocational training, support small and medium-sized enterprises and foster legal certainty.

In order to improve the training of technical and management staff, seven vocational training schools are being developed into training centres. In addition, training and upskilling programmes are being set up for vocational teachers and trainers.

The BMZ is also supporting the German-Mongolian Institute for Resources and Technology (GMIT). Founded in 2013, the institute offers practice-oriented BA courses in resources and process engineering, environmental technologies, mechanical engineering, industrial engineering and management, mechatronics engineering and energy development and electrical engineering. It also offers an MA course on resources and technology.

GMIT has already awarded degrees to more than 100 engineers in close cooperation with three German universities. The BMZ is providing financial support and assisting GMIT in its efforts to introduce a viable business model, expand the research and teaching offers and train teaching staff.

Strengthening small and medium-sized businesses

Germany is also supporting Mongolia in its efforts to improve the business environment for small and medium-sized enterprises (SMEs). SMEs provide around 80 per cent of jobs in Mongolia and offer a lot of potential for increasing economic diversification and reducing the dependence on natural resource extraction.

Germany’s activities are aimed at making SMEs and start-ups more competitive and productive and promoting the creation of new jobs, in particular outside of the country’s capital Ulan Bator. These efforts involve setting up regional business hubs that will help companies enter new markets and find new customers.

As at: 21/07/2023