Three thousand jobs created in the Federation and the RS

The European Commission has entrusted the French organisation Mission Locale De Strasbourg (MLS) with a programme for job creation in Republika Srpska and Federation BiH. The targeted areas for this scheme were Banja Luka, Drvar, Bosansko Grahovo, Mrkonjic Grad, Sipovo, Knezevo, Dubica, Rude, Zvornik, Bijeljina, Brcko, Trebinje, Kupres, Visegrad, Bratunac, Srpsko Sarajevo, Fojnica, Prijedor, Ilidza, Doboj and Derventa.

By Nail Osmancevic

The project aims to stimulate job creation by providing grants to small businesses that will enable them to buy equipment and raw materials. All activities except trade and catering are eligible for funding.

The first project funded by MLS ran between July and December 1997. During 1998 the organisation ran a similar scheme which lasted from April until December. Its 1999 operation ran between January and April.

Who is eligible for grants?

Money was made available to firms on the condition that they pledge to employ at least two new workers. Priority was also given to firms that existed before the war and wanted either re-start or expand their activities. Entrepreneurs were eligible for funding if they wanted to start a business in any field except trade or catering. Firms seeking funding also had to be either registered with the appropriate authorities or have a registration in the pipeline. In addition, applicants had to show that they had premises that were large enough to carry out their chosen activities as MLS and the European Commission did not fund reconstruction of business premises.

MLS undertook to pay new workers 15O DM a month over a 3 to 5 month period as part of the deal. These wages were sometimes accompanied by financial aid for purchasing raw materials or tools to help firms start up their activities. On average this financial aid amounted to 5,500 DM per firm and the largest amount awarded was 7,000 DM. The firms were also obliged to keep employing their new workers in an entirely above the board fashion after the project ended.

Employing returnees in Drvar, Grahovo and Kupres

European Commission funding has allowed MLS to support some 750 different projects in this region. The organisation says these schemes have directly contributed to the creation of 3,000 new jobs. In Drvar and Bosansko alone, 76 projects were funded during 1998 and 1999. These schemes helped 228 returnees find work.

In addition, the organisation invested 2,200,000 DM in the purchase of equipment and raw materials between 1998 and 1999.

Returnees to Drvar and Bosansko Grahovo who wanted to start up businesses in the production and agricultural sectors had to fulfil a set of different criteria to other entrepreneurs seeking European Commission funds through MLS. In order to benefit from MLS loans, they had to demonstrate that their activities would bring positive advantages to the region. They also had to pledge to take on two new employees, although these workers could be family members. Over a minimum three-month period every employee working for an MLS funded business was paid 250 DM. Project leaders received between 400 and 500 DM, depending on the number of the employees working for them and the nature of the project.

The highest cash grant awarded under the scheme was 10,000 DM and the money was available just seven days after the contract between MLS and the firm in question was signed. In this particular case the funds were used to buy raw materials, tools, machines, livestock and animal feed.

Donations to local population

Aside from programmes to help returnees, MLS also ran loan schemes aimed at the existing local population in Drvar and Bosansko Grahovo. But this money was only made available if certain conditions were met. The organisation says interest in this programme was particularly high and that it received between three and four thousand applications for funding from across the Federation and RS. Sadly, it was not possible to provide credit to everyone who applied but some 750 schemes did benefit from MLS grants. Among the lucky beneficiaries were several thousand demobilised soldiers.

All of the newly employed people we spoke to in Banja Luka, Prijedor, Drvar, Mrkonjic Grad and Sipovo were very grateful for the chance the MLS grants had given them to begin rebuilding their lives.

For more information:
Mission locale de Strasbourg
In Sarajevo + 387 71 668 605
In Banja Luka + 381 78 2 13 016