Mongolia is going to take out 20 million USD in concessional loans from the World Bank’s International Development Association (IDA) to expand and diversify the nation’s exports.
The loan line has been approved by the World Bank’s Board of Executive Directors. The credit
will finance the Export Development Project, which will support Mongolian small and mediumsized enterprises (SMEs) in non-mining sectors to strengthen their export capabilities and expand access to export markets.
The project will provide training, matching grants, and access to export credit insurance products for SMEs. The project aims to support economic diversification among agricultural-related products and will have an important impact on employment and productivity in the country.
World Bank Manager for Mongolia James Anderson said, “In Mongolia, where exports are
heavily dominated by mining commodities, we hope that the Export Development Project will
support export diversification and SMEs. Stronger SMEs can have a positive impact on Mongolia’s lower-income population.”
In 2015, 87 percent of Mongolia’s total exports were in mining commodities, while cashmere
products represented five percent of total exports. Export diversification is expected to boost productivity, overall entrepreneurship, and encourage new entrants to the market.