Mongolia’s efforts to expand and diversify its exports got a boost with a $20 million credit from the International Development Agency (IDA), approved by World Bank’s Board of Executive Directors.
The credit finances the Export Development Project, which will support Mongolian small- and medium size enterprises (SMEs) in non-mining sectors to strengthen their export capabilities and expand access to export markets. The Project will provide training, matching grants and access to export credit insurance products for the SMEs. The Project aims to support economic diversification to agricultural-related products and have an important impact on employment and productivity in the country.
“In Mongolia, where exports are heavily dominated by mining commodities, we hope that the Export Development Project will support export diversification and SMEs,” said James Anderson, the World Bank Manager for Mongolia. “Stronger SMEs can have a positive impact on Mongolia’s lower-income population.”
In 2015, 87 percent of Mongolia’s total exports were in mining commodities, while cashmere products represented 5 percent of total exports. Export diversification is expected to boost productivity, overall entrepreneurship, and encourage new entrants to the market.