Promoting a diverse economy in Mongolia

Context

The raw materials sector is the growth engine of the Mongolian economy. Coal and copper make up the majority of exports, and investments are primarily channelled into mining projects.

The government has recognised the risks associated with raw material dependence and has embarked on a path to diversify the economy. Exports and investments can drive economic diversification by expanding markets, promoting competition and transferring technology and innovation. However, support to promote investment and exports for companies outside the raw materials sector has so far been insufficient.

Objective

Small and medium-sized enterprises (SMEs) and domestic and foreign investors outside the raw materials sector have better access to support that promotes investment and exports.

Approach

The project operates in the following fields of activity:

• It supports the Ministry of Economy and Development (MED) in implementing its strategies for a diversified economy. The goal is to create better economic framework conditions and a positive investment climate in order to promote the development of new, export-driven sectors and boost cross-sector investments.
• The project supports the new investment and trade agency established by MED in offering demand-based services to investors. It aims to provide investors with better advice and information throughout the entire investment cycle – from the discovery phase to the business operations phase.
• Together with local implementation partners in Ulan Bator, the project is developing support measures for SMEs with export potential. These include advice on product customisation for export markets and training to improve the business skills of SMEs so that they can tap into new export markets.

Last update: December 2023