USAID Business Growth Initiative (BGI) Year 2, Third Quarterly Report

The initiative began in 2011 and is implemented by Deloitte Consulting, LLP. The program's primary goal is to enhance the business environment and promote economic growth in the country. In the second quarter of 2016, BGI's primary activities focused on promoting the country's textile and apparel industry. European clothing retailers, including Brothers and KIK, conducted buying missions to Kyrgyzstan to explore the country's competitive production advantages. The missions resulted in a trial order of 50,000 pieces from Salkyn, one of BGI's participating factories, with the potential for a larger order of half a million articles by January 2017. To help Kyrgyz apparel makers meet corporate social responsibility (CSR) requirements, BGI engaged Consulting Service International (CSI) Ltd. to conduct compliance audits of eight leading firms. The baseline assessments identified areas for improvement, including management and production systems, to ensure compliance with minimum standards established by buyers. While the firms fell short of meeting certification requirements, they received positive ratings for their developmental potential, indicating that significant improvements can be made through corrective action. BGI also launched an internet strategy and online presence support for tourism promotion in the second quarter of 2016. The initiative aimed to enhance the country's tourism industry by improving its online presence and promoting its attractions to potential visitors. Additionally, BGI installed road signs to support tourism and implemented a guest house improvement pilot in Karakol. The program's activities in the second quarter of 2016 also focused on the textile and apparel value chain, with a focus on promoting the country's competitive production advantages. BGI's activities in this area included supporting the development of a new textile park and promoting the country's textile products to international buyers. In terms of challenges and risks, BGI identified several areas that require attention, including the need for improved infrastructure and logistics to support the growth of the textile and apparel industry. The program also recognized the importance of addressing the country's tax policy and administration, as well as its business regulations and licensing requirements, to create a more favorable business environment. Overall, the USAID Business Growth Initiative is a comprehensive program aimed at promoting economic growth and improving access to finance for SMEs in Kyrgyzstan. The program's activities in the second quarter of 2016 focused on promoting the country's textile and apparel industry, improving its online presence, and enhancing its business environment.