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World Bank Project Aims to Help Mongolia Diversify Exports

by The FINANCIAL
March 24, 2017
in Business
0
Mongolia’s Economic Recovery Continues on Strong Growth
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The FINANCIAL — The Mongolia Ministry of Finance and the World Bank on March 24 launched the Export Development Project aimed to help small- and medium-sized enterprises in non-minerals sectors strengthen their export capabilities and boost their access to export markets.

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The project, to be implemented by the government of Mongolia in the next 4 ½ years, will support Mongolia’s economic diversification by providing those firms with training, matching grants and access to export credit-insurance products, according to the World Bank.

“In an economy where exports are heavily dominated by mining commodities, export diversification will boost productivity, overall entrepreneurship, and employment,” said James Anderson, World Bank Country Manager for Mongolia, at the project’s launch event. “This project also complements other efforts by the World Bank to support inclusive economic growth and livelihoods in Mongolia.”

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“Through the project, existing and future SME exporters in Mongolia’s non-minerals sector will have broader and easier access to export credit insurance, learn practical knowhow, and receive financial support to improve their export quality and competitiveness,” said Minister of Finance Choijilsuren Battogtokh. “The agricultural Reinsurance Joint Stock Company, private insurance companies and other financial institutions will learn to provide export-oriented financial products and services to the Mongolian SMEs.”

In 2015, 87 percent of Mongolia’s exports consisted of mining commodities, while making up only 4 percent of the nation’s jobs. By contrast, agriculture employs nearly 30 percent of the total workforce, with livestock providing subsistence, income, and wealth for nearly half of Mongolia’s population.

The project is funded with a $20 million credit from the International Development Association, the World Bank’s fund for the poorest.

 

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