Serbia Competitiveness Systems Strengthening (CSS) Activity Annual Report Y2

The initiative focused on three sub-purposes: increasing market competitiveness of selected value chains, strengthening business support systems coordination, and mobilizing resources for enterprise growth. Market competitiveness of selected value chains was increased through promotion of Serbian food products and processors. This involved specific market linkages efforts, including consolidation of the fruits and vegetables (F&V) sector with the Chamber of Commerce and Industry (PKS). Additionally, premium food design hubs were established to promote entrepreneurship and identify market opportunities in niche products. Business support systems coordination was strengthened through consolidation of the F&V sector with PKS. This involved the creation of a single, unified entity to represent the interests of F&V producers and processors. Premium food design hubs were also established to promote entrepreneurship and identify market opportunities in niche products. Resources for enterprise growth were mobilized through facilitation of foreign direct investment (FDI), credit guarantee schemes, and financial trainings. The initiative aimed to increase access to finance for small and medium-sized enterprises (SMEs) and promote entrepreneurship in the agrifood sector. The CSS Activity also focused on promoting entrepreneurship and identifying market opportunities in niche products. This involved the establishment of premium food design hubs and the promotion of organic, bio, healthy, functional, ethnic, and other specialty food products. The initiative's pilots have produced impressive results, with some showing signs of being real market changers in Serbia. The pilots have also produced cautionary tales, highlighting the importance of careful planning and execution in promoting entrepreneurship and identifying market opportunities. The CSS Activity has identified key gaps to opening new markets and identifying new buyers in the frozen, fresh, and specialty segments. A group of stakeholders has been recognized to assist companies in utilizing these opportunities, ensuring market-driven selection of beneficiaries. The initiative's results framework (RF) has been used to monitor progress and evaluate the effectiveness of interventions. The RF has been used to track key performance indicators (KPIs) and make adjustments to the project as needed. The CSS Activity has also promoted the development of a model for export strategy that takes into consideration the country's comparative advantages, domestic and regional market demand, and limited presence in key high-value markets. The initiative has targeted the most promising value chains to establish a model for others to follow. Government strategies still lack focus and are mostly targeting agricultural production, with space for improvement in stimulating investments and exports. There is also a very limited connection between academia, research, and the private sector, specifically in the area of new technologies, staff development, and market research. Youth engagement is at a very low level, which is a key element in bringing change in other industries and sectors. The CSS Activity has a very targeted focus, with a clear understanding of the country's comparative advantages and the need to develop an export strategy that takes into consideration these facts. The initiative has identified key gaps to opening new markets and identifying new buyers, and has recognized a group of stakeholders to assist companies in utilizing these opportunities.