Country
Burundi

Local project artner
Fondazione AVSI, Cesena, Italien (Lead) International Rescue Committee Inc. (IRC), New York, Vereinigte Staaten von Amerika Burundi Businesss Incubater (BBIN), Bujumbura, Burundi

German project partner
--

Donor
EU

Duration
01.10.2023 - 31.03.2027

Strengthening rural entrepreneurship in the main value chain "banana" and the sub-chains "honey" and "mushrooms" in Burundi is of high strategic importance for strengthening rural employment. These value chains are relevant to a large number of actors in terms of start-up costs, land expansion and rapid income generation, and are relatively easy to access. This is particularly true for the most vulnerable groups targeted by the project in particular, especially unemployed youth and women attending so-called "FARN" (Foyers d'Apprentissage et de Réhabilitation Nutritionnels) facilities. These centres were set up to combat malnutrition through educational measures, especially for (breastfeeding) mothers. The aim here is to also enable these vulnerable groups to participate in economic life.

In addition to improving the food situation at the local level, the project mainly works on the following topics: Strengthening the technical knowledge and capacities of entrepreneurs with regard to production, processing and marketing, entrepreneurial skills as well as risk identification and management, financial literacy skills as well as banking skills (savings, access to credit, financial planning, investments). In this context, the creation or improvement of an inclusive business environment through networking and access to information along the relevant value chains as well as the support of inclusive projects for women and youth is of great importance. DSIK focuses its work in the consortium with partners on improving access to finance, which explicitly includes the management of a loan fund - provided through the consortium partner AVSI. Beneficiaries are given access to subsidised loan funds, the disbursement of which is flanked by financial and business education measures. In cases where loan funds are insufficient, partial cost subsidies for investments in income-generating activities can also be made available on a selective basis.

Task:

• Additional refinancing funds are made available through the establishment of a rotating loan fund by the consortium partner AVSI and the acquisition of suitable local financial institutions.
• Furthermore, partial cost subsidies are awarded to vulnerable representatives of the target group who start integrative income-generating projects together with companies already established on the market. At least 360 start-ups will be accompanied for six months after foundation by means of coaching and mentoring.
• At the same time, the aim is to reduce information asymmetry between agricultural MSMEs and financial institutions, especially in order to facilitate access to financing. Based on an assessment of the needs of agricultural MSMEs for financial products, the financial institutions are supported in the development of target group-oriented financial products.
• The production side is supported by grants for research purposes to participating universities or institutes to improve food quality and the optimal use of raw materials within the value chains concerned.