The German Federal Ministry for Economic Cooperation and Development (BMZ) has commissioned Deutsche Sparkassenstiftung für Internationale Kooperation e.V. (DSIK) with the implementation of an orientation phase of the regional project “Promotion of rural finance for sustainable MSME development in the South Caucasus and Ukraine” from March 2021 to December 2022. Following the orientation phase, a first main phase from January 2023 until September 2024 will commence subsequently. The overall objective of DSIK in Armenia is to strengthen economic participation of people in rural regions in line with sustainable resource use and eligibility for and access to adequate financial services. DSIK aims at contributing to a general improvement of economic opportunities in rural areas and at raising awareness about external influences and entrepreneurial risks.
In Armenia, DSIK currently works closely together with the Central Bank of Armenia (CBA), the Hydrometeorology and Monitoring Center of the Ministry of Environment of the Republic of Armenia, non-governmental organizations such as SHEN NGO and Green Lane NGO as well as the financial institutions Aregak UCO and Farm Credit Armenia UCO. The following results are expected from the project:
Outcome 1 – The partner financial institutions improve their range of needs-oriented financial services for MSMEs in rural regions.
Outcome 2 – Establishment of the program for entrepreneurial education of MSMEs in rural areas, including contents on resource-efficient management and business risk management.
Outcome 3 – The regulatory framework and the implementation of international and national guidelines on sustainable financing (ESG) have improved.