RURAL BUSINESS DEVELOPMENT IN BOSNIA AND HERZEGOVINA
Bosnia and Herzegovina (BIH) is a mostly landlocked coun- try with only 20 km of coastline. The agriculture sector is an important contributor to the country’s economy (8 per- cent of GDP) and generates almost a quarter of total jobs.
mentoring, facilitating market linkages, creating jobs for women and unemployed youth, and setting up a fund to support the investment in new equipment; (ii) increasing access to finance for smallholder producers and rural en-
It is also the main source of income for the rural population. The agro-ecol- ogy of the country, characterized by mountainous topography and scarce good agricultural land, has resulted in the dominance of livestock vis-a-vis crop production in the agricultural sec- tor. Consequently, livestock production contributes nearly 60 percent of the
trepreneurs; (iii) improving access to roads, water, sewerage and irrigation facilities, and; (iv) project management resources. It targeted poor smallholder farmers (both men and women) inter- ested in commercial agriculture, as well as producer associations and cooper- atives that link to smallholder famers. Other target beneficiaries were women
sector output. Other significant production includes stoned and soft fruits and nuts. Some of the country’s most valuable assets lie in its natural resources, more specifically its forests, agriculture land, water and biodiversity. Land for intensive agriculture is limited and productivity is low due to lack of farming experience. There is substantial under-employment in rural areas and wages are low. In 2014, the OPEC Fund approved a US$5.35 million loan to the government of Bosnia and Herzegovina to reduce ru- ral poverty by enabling the rural poor in the project area to increase their incomes via engaging in profitable farm and non-farm enterprises. More specifically, the project aimed to help poor farmers move from subsistence farming for their own needs to more commercial farming. Other project ac- tivities included help for developing the non-farm enterprise sector to generate additional employment opportunities for the rural population. In particular, the OPEC Fund’s support helped improve rural infrastructure including rural markets, roads, irrigation and sewerage systems, as well as social centers for 27 municipalities in BIH. Disbursements started in 2017 and the project was completed in 2020. Besides the OPEC Fund, the International Fund for Agricultural Develop- ment (IFAD) also supported the project.
and youth interested in non-farm enterprise employment or self-employment. The OPEC Fund’s financing focused on improving agricultural productivity and yields through im- proved infrastructure, such as the construction of new water supply and sewerage schemes, new water points on pas- tures, small-scale irrigation schemes, river bank protection structures and the improvement of roads meant to benefit 16,000 households with an estimated 90,000 people. Under the OPEC Fund-financed components, 37 rural roads and a bridge were improved; eleven water supply systems to facilitate agricultural production were developed; six irri- gation systems, one water collection basin and three basins for water distribution, five processing plants and cool stor- age facilities were constructed; and investments in four open green markets and agribusiness centers were undertaken. To improve the livelihoods of rural population, two micro-pro- jects of sewerage systems were developed and a center for farmers’ socializing, trainings and events was provided. The completed works are estimated to have benefited over 90,000 people by facilitating improved productivity and ac- cess to markets by all participants in the value chain, and in particular by poor farmers.
An estimated 90,000
The overall project included: (i) training smallholders farm- ers on productivity enhancement practices, on-the-job
people have benefited from the project.
47
Powered by FlippingBook