Innovative Partnership Support Program For SME Development in Mongolia

2018-05-17 09:31 GMT+8

Ulaanbaatar, Mongolia, May 17, 2018 - Oyu Tolgoi LLC (OT) today signed a memorandum of understanding with Deutsche Gesellschaft Für Internationale Zusammenarbeit (GIZ), the Gobi Oyu Development Support Fund (DSF), the Umnugovi Governor (UG), and International Finance Corporation (IFC), a member of the World Bank Group. Furthermore, a co-financing agreement between the Gobi Oyu Development Support Fund (DSF) and GIZ was signed. Together, the parties seek to cooperate on the development of “Capacity Building Program” for Mongolian small and medium enterprises’ (SMEs).

Key aim of the capacity building program is to facilitate necessary trainings for SMEs in various sound business practices such as HSE, business integrity, business management, supply chain management, etc. to improve their competitiveness and sustainability while meeting world class mining and other industry’s needs but also to facilitate financial literacy and capacity building programs.

In Mongolia, 98 percent of all businesses are classified as SMEs, but they contribute only 25 percent to the country’s GDP. While they account for 90 percent of Mongolia’s jobs, these businesses struggle to grow and develop. Only 10 percent of Mongolian companies are able to regularly access finance through banks.

Through this innovative partnership, OT together with its partners continues to contribute to the prosperity of Mongolia by developing and upskilling capacities of Mongolian business, with particular focus on Umnugovi, to be more safe, sustainable and competitive.

– / 15Showing image 1 of 15

Armando Torres, the Chief Executive Officer of Oyu Tolgoi LLC underlines the strategic perspective of the project: “Our focus is on programs with long-term contributions that support sustainable development in close cooperation with a range of national and local stakeholders.” Mr. Torres added, “With this partnership, we start a new era of multi-stakeholder support for SMEs Capacity Building Program in Mongolia.”

On behalf of the German Ministry for Economic Cooperation and Development, GIZ has been active in Mongolia for over 25 years in various development sectors and this time, with pleasure, we will lead the joint capacity development program for Mongolian businesses. As Stefan Hanselmann, head of the GIZ program Integrated Mineral Resource Initiative, explains: “GIZ brings global expertise from more than 130 countries in SME development, building on our strong commitment and longstanding links to Mongolia.”

“This partnership will enable demand for inputs and services from mining companies to be aggregated and communicated to local suppliers. This will help enhance transparency and generate greater opportunity — and hence, sustainability — for SMEs, which will be upgrading their skills through this program” says IFC Resident Representative for Mongolia 
Tuyen Nguyen.

IFC continues its commitment to Mongolia and the OT project, building on its extensive work 
with the banking and financial sector, water management in the mining sector, and supporting jobs and SMEs. IFC supports Mongolia’s sustainable economic development by investing and mobilizing capital for private sector clients as well as advising the government and firms to enhance business competitiveness. Since IFC first opened its office in Ulaanbaatar in 1997, it has invested and mobilized more than $3 billion across sectors.

Governor of Umnugovi aimag and Board Director of DSF: “This event is shown strong evidence of positive and constructive partnership between Umnugovi aimag and Oyu tolgoi towards a sustainable business development and provides a rare opportunities for all SMEs at local regional and national levels. One of key priorities of Umnugovi aimag’s development strategy is economic development and diversification through SME development. Today, DSF enables establishment of multi-stakeholder partnership with GIZ, IFC and OT and leverage investment to the SMEs development that is a strong foundation for economic growth and diversification for many years to come”.

GoGo Facebook Page

Go to top