GTZ/EG ­ Association for development

Combining return and economic development

The Development Corporation Tuzla (DCT) was set up in order to support economic development in the Tuzla region. The GTZ (Deutsche Geschellschaft für Technische Zusammenarbeit) and the Canton Tuzla-Prodrinje took a 50/50 share in the project, under which German and Bosnian experts work together to develop adequate solutions for the reintegration of refugees and displaced people, this successful reintegration depending largely on the economic perspectives, notably business creation and employment.

By Azra Salkovic

The European Commission funds the Development Corporation Tuzla (DCT) to a tune of up to 5 million EURO. Half of this budget goes to housing and infrastructure reconstruction, and the other half to activities aimed at job creation.

"Boosting business is a key to the return process" says Wulf Hendrik Goretzky, DCT programme manager. "We offer a wide range of services to local entrepreneurs, from counselling on how to apply for a bank loan in a professional manner to seeking co-operation exchanges with West-European entrepreneurs. Through a micro-grant scheme, we can also help businesses to start-up and existing businesses to expand".

In early September, DCT organised a visit to Tuzla with representatives of 35 German companies from sectors as diverse as construction, wood, food, metal and trade. Each German company carried out 10 to 12 interviews with local businesses during a trade fair at Hotel Tuzla.

"Useful contacts were taken and even a few pre-contracts were signed" says Mr Goretzky. "Foreign entrepreneurs are still reluctant to invest in Bosnia because they are not well informed. They think the war is still going on here. The Germans who took part in this business trip now know that there are economic activities in and around Tuzla, that there definitely are qualified people with entrepreneurial spirit" he says.

DCT also organises seminars on management and technical issues targeted at returnees and internally displaced people as well as the local economic community. The idea is to help local entrepreneurs improve their organisation, their finance and the service to their clients. Seminars were organised on marketing, and in a more specific area, on maintenance of agricultural machinery.

Donation up to 19.5 thousand DM

One particularly interesting scheme is a project to provide start-up and venture capital to small and medium-sized enterprises. The money is made available in the form of grants and a total of 19,500 thousand DM has been allocated for the programme that eventually hopes to help some 200 businesses in Tuzla.

In order to qualify for the funds, companies have to produce detailed business plans that not only show how and where funds will be spent but also provide evidence of private sector investment. Proposals also have to demonstrate a potential for job creation in the region.

EG is also responsible for managing funds designed to help refugees living abroad return to BiH and to help them find work when they arrive. Some 115 firms in the Tuzla region have so far benefited from EG programmes.

Alija Jukic owns a garage and is hoping to become one of the first authorised agents in BiH for the Bosch car-parts company. He is one of 115 lucky entrepreneurs who have so far benefited from the EG scheme.

Jukic was born in Koral and spent several years working for the Mercedes car company in Switzerland. He plans to spend his grant on highly sophisticated equipment that will enable him to maintain and repair Bosch fuel pumps in modern diesel and petrol engines. "This equipment is vital for repairing practically all vehicles on the roads today. Nobody is doing this kind of work in BiH at present so some ten to fifteen Bosch pumps are currently sent abroad every day. I do not intend to deal with pump replacement but with pump fixing so nobody will need to go abroad to fix his or her pumps. Everything will be done here", Jukic said.

As it mentioned, all grants are provided on the condition that businesses will be able to take on new workers. Jukic says he has already spoken to two secondary school students, who he hopes will be able to help him in his workshop during the third year of their studies. When the two have finished school, he hopes to employ them full time.

Aside from the 13,000 DM grant that he received from EG, Jukic also plans to invest a further 20,000 of private sector capital in his project.

We have chosen Alija Jukic's story as a random example of the 115 businesses which EG and the GTZ German Association for technical cooperation have helped to turn dreams into reality.

For more information:
GTZ Tuzla
tel.: + 387 75 251 125
fax : + 387 75 251 150