This subcomponent will support the establishment of Matching Grants (MG) for SMEs with export potential, to assist them in acquiring product certifications and standards, upgrading employees’ skills, and utilizing business development services (BDS). Matching grants can help address market failures by sharing the cost of making risky investments in these knowledge products.
This subcomponent will finance consulting services and capacity building for selected SMEs and business associations to (i) to fulfill requirements to implement standards and product certification required for export markets, (ii) to enhance capabilities for export readiness, and (iii) to gain access to Business Development Services (BDS)/Training. The matching grants scheme will be managed by Kosovo Investment Enterprise Agency (KIESA) under the MTI. An Independent Selection Committee (ISC) comprising of international experts and the private sector will adjudicate applications. The overall design of the matching grants will be governed by the Grants Manual (GM) prepared by KIESA and approved by the WBG, based on an SME needs assessment and available supply capabilities in the market. This subcomponent complements the other components of the Project, such as NQI. While an improved NQI system will reduce firms’ costs in obtaining the internationally recognized certification and testing, the matching grants will support firms’ know-how to meet the requirements of these standards.
The Grant size will be from €5,000 to €46,800 for Product Certifications/Standards, while the maximum grants for BDS/Training will be €25,000. Exceptions could be made in special cases of lower or higher amounts, subject to agreement of the Matching Grants Manager and the SC and subject to WB No Objection. Micro, small and medium enterprise (MSME) or Business Associations may apply any number of grants for Product Certification/Standards and BDS/Training. However, MSME/Associations can receive/gain up to 3 grants subject to max €50,000.
Approximately 90 firms and a maximum of five Business Associations (with 150 to 250 member firms) are expected to benefit from this Program. MGs provided to firms through Business Associations will encourage firms to share training costs. Since trainees are likely to stay within the industry even if they move between firms, this would enhance the capacity of groups of firms within the sector. The MGP will provide matching grants of up to 60 percent of the Project cost, and the remaining minimum of 40 percent will be cash contributions by the Applicants. Firms that propose to pay a higher contribution will be preferred during the selection process.
Product Certifications/Standards MGs are defined as grants to co-finance costs of MSMEs to acquire international Certifications/Standards. The financing to be awarded by the MGP could cover a maximum of 60 percent, up to €46,800 equivalent amount of the total approved Applicant’s Project budget request. The minimum of 40 percent of the Project cost should be covered by the applicant, proved by bank account. Eligible costs to be financed by the MGP include costs of Product Certification (testing, verification, certification, and inspection) quality audits, implementation of standards, for example, quality, environment, training, etc.). The provider of these services can also be in a foreign country.
To apply for Matching Grants you need to create an account here.