Kosovo has the youngest population in Europe. The economy has been moderately growing during the past years, but it is still very weak and unable to provide the number of jobs needed to absorb those entering the labour market every year (around 36'000). The overall unemployment rate in Kosovo is 29%. Unemployment rates are even higher in the rural regions. In particular, unemployment rate among the minority communities are higher depending on the ethnicity, with RAE community having the highest unemployment rate of 80%. Considering that public sector cannot expand in terms of additional jobs. The private sector remains the only hope for absorbing the high number of unemployed youth.

“SMEs that operate in well-organized and inclusive economic sectors, provide increased sustainable gainful employment for young women and men in Kosovo“.
As an expected result; By the year 2027, additional 2'000 (150% increase of target from phase 1) young women and men (beneficiaries) will be employed directly or indirectly in full time jobs due to PPSE‘s interventions.

Young people tend to be more unemployed compared to older age generations. PPSE II will aim to target more young people seeking employment.

Women tend to be more unemployed compared to men, the employment rate among working-age women is only 12.9% (or 25% of employed people), compared to 45.6% for men. PPSE II will aim to design specific interventions in the sub-sectors that offer more potential for women inclusion.

Targeted interventions will be implemented to reach the minority communities in Kosovo, especially the Roma, Ashkali and Egyptians as the most excluded communities in Kosovo, along with other minorities, including the Serb community in the North. lt is planned that 10% of the employment created will be for minorities.

• Outcome 1: “Young people, women and minorities benefit from gainful and inclusive employment, created in the dynamic SME‘s in the growing sectors“
• Outcome 2: “Small and Medium Enterprises improve their offer, efficiency and competitiveness in improved and better organized inclusive market systems“

Principaux résultats attendus:  

• SMEs have improved the quality and diversification of their products and services
• SMEs and farms have increased production
• Service Providers offer improved business support services
• SMEs have improved access to sales channels
• Stakeholders have improved sector organisation and networking

Principaux résultats antérieurs:  

During its first phase the PPSE program contributed to positive systemic changes in the sectors where it was intervening. For e.g.in the tourism sector the touristic offer has increased and tourism products have improved resulting in a significant increase of tourists. The sector actors started to commercialize (from enthusiast groups/NGOs to businesses) and see business opportunity in the sector.
Project interventions in the food-processing sector have contributed significantly in the uptake of contract farming. Linking farmers with the processing industry through the collection centres has resulted in a higher outreach to the farmers. Therefore in its second phase the project will continue working through the agents who have access to a wider network of farmers and companies. The project has also contributed to the response of the support markets such as packaging, certification, financing schemes, etc, following the growing trend of processing industry.

In terms of additional jobs and income the following results were achieved: 850 full time jobs have been generated, out of which 42% were for women and 9% for minority groups. The income increase is over CHF 2'000'000 (105% of the phase target) and around 1000 SMEs have benefitted through the project activities.

The second phase of the project will be implemented by a consortium consisting of Swisscontact and the local organization Riinvest Institute (selected through an open tender procedure in phase 1)

The already well established cooperation and coordination with SDC and SECO funded programs will be maintained and further enhanced especially with the SDC financed “Enhancing Youth Employment Program“ (EYE) which aims at decreasing youth unemployment, but tackles this through improving employability and matching between labour demand and supply as well as the lnvestment Climate Project II funded by SECO, aiming at improving institutional business related services, and overall doing business climate in Kosovo. PPSE will align and look for synergies with all donor projects (including also USAID, GIZ and EU projects).

Phase 2 16.11.2017 - 15.11.2021   (Completed)