Light manufacturing was a significant and regionally well-integrated sector in former Yugoslavia. However, with the outbreak of civil war and the disintegration of the region into national economies the Western Balkan’s light manufacturing sector experienced a setback. Today, although it still employs a large number of workers and contributes to 19% of GDP in Serbia and 12% of GDP in North Macedonia - the two countries SECO supports within the scope of this regional program - its contribution to economic growth and job creation remains significantly below potential.

The IFC Light Manufacturing Jobs and Competitiveness Program is a holistic approach with the objective to re-integrate the light manufacturing sector in the Western Balkan region in order to increase its competitiveness. Thereby, it aims to contribute to the creation of higher value added (and therefore better paid) jobs for local workers and to increase sales revenue for SMEs.

The demand from large (international) investors (FDIs)/offtakers is mapped against the offerings of local SMEs in order to initiate new business relationships.

Local SMEs improve their products and services in order to become a reliable supplier for both international and local offtakers.

Business policies and supplier development programs become more effective and are informed by regular feedback from the private sector.

Regional integration of local firms' value chains and interregional governmental collaboration increase.

Erwartete Resultate:  

Develop a comprehensive methodology to analyze and map business needs and capabilities.

Execute three types of SME upgrade initiatives in order to improve SME's service delivery.

Provide advice to governments with regard to structuring supplier development programs and relevant policies.

Support inter-regional governmental cooperation efforts.