FACT SHEET: Donor Partnerships in Bosnia and Herzegovina

The Challenge
After massive reconstruction following the war in Bosnia and Herzegovina (BiH), the international community continues to play a key role in supporting the country’s progress and stability. Developing jointly funded projects with other donors is a powerful way for USAID to further its development goals and multiply the impact of U.S. foreign assistance. This labor-intensive process requires dialogue and a strong understanding of the other donor’s development philosophy, program modalities, and capacity. Such challenges have proved well worth the effort in BiH. 
Our Assistance
To date, USAID/BiH has leveraged more than $90 million from other donors, including the countries of Sweden, Norway, Germany, Italy, the UK, the Netherlands and the Czech Republic. USAID/BiH has used three main types of donor partnerships: (1) donor resources transferred to a USAID-managed project; (2) parallel funding to a shared effort managed separately; and (3) USAID funding to a project managed by another donor. These collaborations created strong models for USAID to replicate worldwide. USAID/BiH has also begun implementing funds through direct agreements with government institutions. Some of our current innovative partnerships include: 
USAID/BiH innovative partnerships include: 

Fostering Agricultural Markets Activity (FARMA II)

Total $16.2 million:  $8.1 million each USAID and the Swedish Government

USAID and the Swedish International Development Cooperation Agency (Sida) designed and awarded the FARMA II activity to assist producer organizations in selected agriculture and food processing sub-sectors to produce and export new high-value food products. Assistance will help producers adopt EU and international food standards and new production techniques. The project will also assist BiH government and public agencies to implement regulations for food and agricultural products that meet EU and international requirements.


Development Credit Authority Loan Guarantees

USAID/Sida loan guarantees unlock $30 million in credits; Sida risk co-share 25 percent.

Partner banks: Procredit, Sparkasse, Nova Banka

USAID/BiH and Sida collaboration through USAID’s Development Credit Authority program was the first-ever global partnership between USAID and Sida for loan guarantees. The DCA agreements with Procredit and Sparkasse helps remove a major obstacle to private enterprise growth in BiH: lack of medium- and long-term financing for SMEs. The DCA agreement with Nova Banka supports lending to BiH diaspora-owned and co-owned small and medium-sized enterprises in multiple sectors.


Restoring Accountability and Supporting Transformation (RAST)

USAID $2 million; $120,000 cost-share Catholic Relief Services;

$200,000 local government partners

This project builds on the regional program, Business Friendly Certification for South East Europe, a municipal certification program that improves the quality of services and information of municipalities to potential investors in the region.  Substandard infrastructure and lack of a business-friendly environment are two main challenges for companies in BiH. The RAST Project will support at least 10 municipalities to strengthen municipal systems and processes to help them obtain the internationally recognized BFC, thereby endorsing efficient and transparent local administration. The main beneficiaries of the BFC process, in addition to the municipalities, are businesses registered and operating in the municipalities, as well as new investors.


For more information:
Ela Challenger, Deputy Director
USAID/BiH Program Office 
Tel: +387 (0) 33 704 211