USAID Business Growth Initiative Year 2, Second Quarterly Report First Quarter 2016

The initiative focuses on improving access to finance for small and medium enterprises (SMEs) and enhancing the business environment. BGI's primary activities in the first quarter of 2016 included apparel sales and buying missions to Russia, Europe, and China. The apparel team conducted a sales mission to Russia in February, which generated an immediate request for 75 price quotations for garments from Kyrgyz apparel firms. Eight producers subsequently received 38 style requests, representing potential orders of more than US $2 million. Mellon Fashion Group has already placed one order for women's dresses worth approximately $30,000. In March, the BGI team visited potential buyers in Europe to determine their requirements in production capacity, quality, pricing, delivery time, and ethical standards. The team met with retailers such as Primark, United Colors of Benetton, and Swedish brands Nelly and Brothers. European retailers expressed interest in working with the Kyrgyz firms once suppliers prove their abilities to comply with EU standards. To support the apparel sector's need for high-quality fabric, the BGI team undertook a sourcing mission to China in March and met with 14 textile mills with positive results. BGI will help Kyrgyz firms combine fabric orders and consolidate shipments to obtain volume discounts and lower transport costs. In addition to the apparel sector, BGI also supported the development of the tourism industry in the Kyrgyz Republic. In March, BGI supported two events that reflected the project's intended grant awards to BGI DMOs in Karakol and Jyrgalan. US Ambassador Shiela Gwaltney awarded a plaque commemorating the formal registration of the Karakol destination management organization (DMO), Destination Karakol. BGI will award the DMO a grant to support a portion of first-year operating expenses. Destination Karakol made its first presentation to the Karakol community on March 31, introducing its plans to develop and promote tourism products and services in the greater Karakol area. The DMO urged entrepreneurs and tourism service providers to join the group and contribute toward raising Karakol's appeal as a year-round tourism destination. BGI's activities in the first quarter of 2016 also included participation in tourism international exhibitions, presentation of a strategy for construction materials value chain, adoption of amendments to inspections law, and other initiatives. The project's overall goal is to promote economic growth and improve the business environment in the Kyrgyz Republic.