Value Chain Initiative: Value Chain Initiative: Rural Employment Generation Activity

Partner MCF Partner was founded by Mercy Corps in April 1997 as a non-profit organization. Long term goal is to establish a microcredit company and to eventually transform into a bank.

Mission: Partner provides accessible financial services to micro entrepreneurs and population with a focus on rural areas. We stimulate the improvement in the standard of living and contribute to the employment rate increase throughout Bosnia and Herzegovina. Vision: Partner sees a future in B&H where the finance services will be available to all those who are entrepreneurial and willing to work. Our role will be to help our clients start up and develop small businesses, assist in creation of employments, and as an agent of change, to contribute to the healthy transition of the country to market economy. Partner MFC

End of 3rd quarter 2010 No. of active clients (market share)16,2% No. of active clients43,045 Gross portfolioEUR 52,5 mil No. of employees261 Case load per Loan Officer309 Active portfolio / Loan OfficerEUR 370,000 Field Offices57 Average loanEUR 1,580 Partner provides financial services to economically active people who do not otherwise have access to commercial sources of funding. Partner is a non-profit, non-deposit, multhiethnic, inter-entity NGO

Duration: December December REGA Project (In cooperation with USAID) Duration: December December Providing financial services through commodity loans with technical assistance for sustainable soft fruit production. Cooperation with farmers, cooperatives and other market participants in order to find the market for product placing.

rural development, self-employment, improvement of household income decrease of import of soft fruits through linkage of individual producers, fruit buyers and processors. REGA Project is focused on:

REGA Project achievements Development of fruit sector in BiH. New jobs for farmers (majority of farmers are officially unemployed). 372 farmers received Fruity loan. Total amount of disbursed funds is cca euros Family business (currently cca 1200 invididuals indirectly benefits from the project). Exploitation of natural resources. Farmers gained knowledge and skills in fruit production.

REGA Project REGA Project The final goal of the project is to generate rural employment and to increase soft fruit production.

Unique Loan on the market- Fruity loan A new loan for agriculture for financing of soft fruits (cherry, sour cherry, raspberry and blackberry) cultivation. Below market interest rate Flexibile collaterals No provision fee Free technical assistance from Partner agronomists Complimentary financial literacy training

The benefits (value added) for farmers are: favorable interest rate, technical assistance during the implementation of the project, finding placement for their products, linking farmers with buyers, processors and farm cooperatives, soil analyses, financial education certified seedlings.

Main beneficiaries Land Farmer must allocate family-owned land to berry production. Min. 1 dunam and max 10 dunams of land. Obligatory soil analysis Technical capacity Must have some experience in growing fruits. Must have sufficient labor for growing fruits. An irrigation system must be installed. Production methods and standards Must participate in technical training Must be willing to work according to Global GAP Standards ( Good Agriculture Practicies).

REGA value chain

Methodology of Value Chain

Financial sustainability of the Value Chaine

Project Results Grown cultures and expected earning November CulturePlanted in dunums.Yield in kgPrice (in EUR) Expected earning after first harvest (in EUR) blueberry73, ,27 raspberry581,115001, ,92 blackberry3,020000,53.067,75 cherry30,520001, ,61 Sour cherry39,020000, ,77 Total469, ,32 The project is viable since the great majority of farmers were able to repay the loan in total after the first harvest.

Risk management Commodity loan / No misuse of the assets Technical assistance / Limiting risks for the cropes Favorable interest rate / Not to overburden the farmers Finding placement / Timely payment to farmers Soil analyses / The right selection of a variety Financial education / Increasing financial literacy and money management Certified seedlings

Our clients Fatima Berbić, Banovići, Federation Unemployed Loan of 3.001,75 EUR was approved with loan term of 60 months in April 2009 for raspberries and blackberries. Crops are in good condition

Milan Pajić, Bratunac, RS Unemployed Loan at the amount of 1.119,31 EUR was approved in May 2009 with the loan term of 48 months Blackberry Crops are in good condition Our clients

Our clients Our clients Measurement of humidity and acidity of land Regular monitoring by Partner agronomist

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