FINAL REPORT - USAID Macedonia

Between 2009 and 2011, facilitators worked with 234
companies, of which 159 companies “graduated” from
the platform and had their investment proposals
approved by a bank or financier. The resulting
financing of $78 million enabled these companies to
invest a total of $118 million in new products,
facilities, equipment and technologies. These
investments subsequently generated 1,622 jobs and
exports of $58 million.
The actual impact of the financial platform extended
beyond financing and investment. MCP advisors did
more than prepare and submit a proposal. In order to
present a company as “bankable” in the eyes of a
financial institution, pushed clients to implement
internal restructuring, management improvements and
process re-engineering. Often they assisted companies
identify weaknesses in internal procedures that allow
cash to “leak out” of the company, and suggest
remedies. Facilitators evaluated performance of
product lines to re-orient companies towards more
profitable market strategies, and looked for
opportunities to cut costs. They streamlined expansion
plans and established implementation timetables to
enhance the likelihood of success and optimize return
on investment. The outcome was not only a new
facility or piece of machinery, but a healthier,
competitive company better able to weather the tough
times while growing rapidly in the good times.
MCP Financial Facilitators worked with companies
located throughout Macedonia. Out of the 159
companies assisted, only 35% are based in Skopje; the
others are companies from all different regions. Most
were served by the several facilitators located
regionally, although often Skopje-based financial
facilitators worked with companies located out of
Skopje. The facilitators have also served companies of
all sizes. A large majority of the clients, and resulting
jobs, involved micro or small enterprises.
The success of the Financial Platform did not go
unnoticed. Many other donors and other countries
expressed their interest to implement similar programs.
As a result, this type of Access to Finance program is
currently being implemented in other Balkan countries
by a regional USAID project as well as in the Caucasus
region by USAID-funded projects. It was also recently
adopted through USAID’s West Africa Trade Hub.
“We have worked with our MCP financial facilitator for a
number of years now. We have found him to be an
invaluable asset for us to strengthen our internal
organizational processes and financial management
practices that has resulted in improved productivity and
efficiency of the company. With the assistance of the MCP
financial facilitator we were able to access two different
loans, first to complete and put in function our new
expanded production facility in 2009. Then, in 2010 we
reprogrammed all of our old expensive loans with a new
more favorable loan, with only the half of the interest rate
we were paying before. It would have been very hard for
us, if not impossible to achieve this with our own internal
resources.”
Toni Bozinovski, Manager and Co‐owner
Tehnokoop, furniture maker and the 101st company
successfully assisted by MCP financial platform
We receive financial proposals every day with varying
qualities. But when I see a financial proposal developed by
an MCP financial facilitator, I can be more confident that
the investment plan has been well thought out and the
proposal sound. Thus, it is easier for us to evaluate the
proposal and make a positive determination.
Aleksandar Stanojkovski,
Credit and Guarantee Department Manager,
Macedonian Bank for Development Promotion
The Financial Platform and the Financial Crisis
The Financial Platform played an important role in helping
unlock capital at a time when access to finance is as
important as ever. The world financial crisis prompted
companies to “freeze” and “wait and see” before taking
action. Forward‐looking companies, however, recognized
the need to invest: to reduce costs without sacrificing
quality, improve productivity, develop new products or
position themselves for more stable markets. The
Platform helped companies think through their plans and
obtain financing in an otherwise unfavorable
environment. At the same time, banks—facing higher
reserve requirements, tight credit conditions and non‐
performing portfolios—were eager to receive well‐
considered, bankable projects. Their confidence was
much higher knowing that companies going through the
MCP Financial Platform process were more likely to
survive the downturn and thrive in the long term—and
thus prove profitable borrowers.
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