-    Agricultural production and related activities are Albania’s main source of employment and provide a significant share of its foreign-exchange earnings, generating around 20% of Gross Domestic Product and employing around 34% of the workforce in Albania.

-    The sector is characterized by a high risk of migration, land ownership issues and weak cooperation and coordination amongst farmers and businesses/actors along the value chain as well as inadequate advisory services and limited framework conditions that hinder its growth and competitiveness. The pandemic-related decline in employment is particularly affecting rural areas, which are exposed to migratory pressures, especially among young people.

-    There is high potential for the agricultural and food industry both in the domestic market (agritourism and a growing, affluent urban middle class) and in exports to the Western Balkan region and the EU. This potential is not fully tapped.

-    There is need and scope to enable more Micro Small and Medium Enterprises (MSMEs) in different agricultural value chains to meet the high demands of these markets in terms of quality, delivery volume and reliability.

Direct beneficiaries:

MSMEs owners and employees, especially young people, women and returnees

Intermediary targets:

Public and private BSOs 

Outcome 1:    People living in rural areas benefit from inclusive, increased and better employment and incomes.

Outcome 2:    MSMEs invest in applying innovative, economically viable and inclusive market based solutions thereby increasing their competitiveness.

Outcome 3:    An enabling business climate for the agro food sector is fostered through informed decision-making.

Risultati principali attesi:  

-    Innovation models for opening/expanding new agro food markets are identified and proven to be economically and financially viable.

-    Sustainable business models are scaled up, based on cooperation between private sector operators and public and private business service organisations (BSO), in innovation networks.

-    Capacities are increased along value chains (MSMEs) supported by demand driven institutionalized service offerings by public and private BSOs to scale innovations.

-    Public-private dialogue, based on results and experiences in the innovation networks, is fostered.

Risultati fasi precedenti:  

From Sustainable Rural Development phase 1 (funded by German Federal Ministry for Economic Cooperation and Development, BMZ):

-    2’500 smallholder farmers have diversified their income generating activities thanks to project activities (trainings and other capacity development measures) in the value chains of orchard fruits, greenhouse vegetables production, small ruminants (sheep and goat milk production), and MAPs;

-    Lead firms were targeted as entry points. Lead firms are those actors in a value chain who have the potential to integrate smallholders into a supply chain, such as aggregators of agricultural supplies/products, processors, exporters, etc.

-    German Agency for International Cooperation (GIZ)

-    Contribution to the Sustainable Rural Development (SRD) project phase 2, implemented by GIZ and funded by German government/BMZ