ZRDA FY 2019 ANNUAL REPORT

The activity's primary objective is to improve the economic well-being of rural households in Georgia through the development of micro, small, and medium-sized enterprises (MSMEs). The activity focuses on four sub-purposes: improving MSME development and growth, increasing productivity of rural households, facilitating market linkages between producers and buyers, and promoting local economic development by establishing networks. During Fiscal Year 2019, the Zrda Activity made significant progress in achieving its objectives. The Zrda Sub-Award Facility (ZSF) played a crucial role in facilitating interventions in support of Zrda objectives across priority sectors and regions. The facility utilized sub-award mechanisms to finance activities through local actors, including private sector, NGOs, associations, and government agencies. A total of 167 sub-awards were made during FY 2019, amounting to more than 1,585,000 GEL. The Household Survey and Zrda Resiliency Index (ZRI) conducted in FY 2019 revealed a significant improvement in the households' resilience and general well-being compared to the baseline period. The survey outcomes also showed that the target group (i.e., the project's beneficiaries) has achieved better results in terms of income, availability of resources, and access to formal structures to manage these resources. In terms of economic indicators, the Zrda Activity achieved notable results. By the end of FY 2019, new sales generated by Zrda MSMEs reached $25.1 million, close to 70% of the Life of Project (LOP) target. This represents a 15% increase compared to the Q3 FY2019 results and a 128% increase compared to FY 2018. The cumulative total sales increased by 17% from Q3 to Q4, reaching $41.3 million by the end of FY 2019. This is an 80% increase from the results achieved in FY 2018. The activity also created a significant number of new jobs, with 1,080 new jobs created through FY 2019. The number of jobs increased by 19% from Q3 to Q4 FY 2019, reaching 45% of the LOP target. There is a 57% increase in the number of new jobs compared to FY 2018 (689 new jobs). Additionally, the activity trained 343 new individuals across all sectors during Q4 FY 2019, bringing the cumulative total to 4,129 individuals. The Zrda Activity also made significant progress in leveraging resources from project partners, with $2.9 million leveraged during FY 2019, representing 79% of the project LOP target. The activity also achieved notable results in terms of gender and youth, with 43% of Zrda beneficiaries being women and 27% being youth. The total number of beneficiaries at the end of FY 2019 was 83,043.