In partnership with Athene Prosjektledelse AS, Crimson is supporting the establishment and development of the Innovation Centre in Kosovo. The purpose of the Centre is both to assist entrepreneurs in developing innovative and successful companies that create future-oriented jobs and to attract and support foreign investor partners. The Centre will also provide training and professional development services and will support research and development activities in the field of innovation.

The Crimson Finance Fund (CFF) is a non-bank financial institution that is uniquely positioned in the marketplace. CFF provides innovative, short-term working capital finance products to small and medium sized enterprises (SMEs) in Kosovo. CFF directly targets the problem of the “missing middle,” in which the vast majority of companies in developing countries cannot obtain short-term working capital financing needed to grow, employ more people, increase exports and become competitive and viable for the long-term. CFF utilizes products such as purchase order finance and pre-export financing to address the lending needs of the SME sector in Kosovo.

The Crimson Finance Fund provides financing to all sectors of the economy and operates in all regions of Kosovo, but gives special attention to businesses that are not being adequately served by existing financial institutions, including rural businesses and enterprises owned by women and minorities. CFF began lending in the fourth quarter of 2008. To date, CFF has made loans totaling more than $8.75 million to SMEs, supporting over $77.5 million in new, incremental sales and more than 535 new, permanent jobs, including 139 jobs for women and minorities. Through its lending, CFF has also indirectly supported more than 1,596 local farmers, 79 agro-collection centers, and 1,912 SME suppliers.

Crimson Capital designed and manages this $3.7 million fund that provides innovative, short-term working capital finance products to small and medium sized enterprises (SMEs) in Macedonia. The Fund directly targets the problem of the “missing middle” in which vast majority of companies in developing countries cannot obtain short-term working capital financing needed to grow, employ more people, increase exports, and become competitive and viable for the long-term. The Fund utilizes products such as Purchase Order Finance and pre-export financing to address the lending needs of the SME sector.

To date, the Fund has made loans totaling more than $22.84 million to Macedonian SMEs, supporting over $99.98 million in new exports more than 3,226 new, permanent jobs, including over 1,624 jobs for women and 330 for minorities. Through its lending, the Fund has also indirectly supported more than 11,150 local farmers, almost 271 agro-collection points, more than 7,726 domestic buyers, over 3,996 domestic suppliers, and nearly 1,316 foreign suppliers. The Fund extends loans to all regions of Macedonia, and targets all major sectors of the economy, including light manufacturing, trade, textiles, ICT, retail, agriculture, food processing and construction, but particularly targets SMEs under that are not being adequately served by existing financial institutions, including rural businesses, entrepreneurs and enterprises owned by women and minorities. The Fund is a principal provider of short-term trade finance for SMEs in Macedonia and plays a key role in the expansion and growth of SME activities in Macedonia.

With funding from the Norwegian Ministry of Foreign Affairs and in partnership with ICT Norway, Crimson is supporting the development of the Albanian Information Technology Association (AITA). The goal of the project is to develop AITA’s organizational and technical capacity, enabling it to become a leading force in innovation, technology and competitiveness in the ICT sector and across Albania’s entire economy.

Through the project, Crimson is providing technical assistance and project management support to AITA in developing its organizational structure, including support in reviewing and developing bylaws; hiring staff and establishing its office and operating procedures; and developing revenue generating activities that will allow AITA to become self-sustainable.

The goal of the Investment Climate Improvement (ICI) Project is to assist the Palestinian Authority (PA) to adopt and implement the laws, regulations, policies and procedures required to improve the business climate and promote domestic and foreign investment, bring the trade regime into compliance with the requirements for full membership in the World Trade Organization (WTO) and improve revenue yield from domestic taxes in order to move toward a more sustainable fiscal position. Crimson supports the efforts of the ICI project under a subcontract to Chemoincs International, by providing expertise in fiscal policy reform and business enabling environment.

Crimson Capital is part of an Urban Institute-led consortium recently awarded the Democratic Effective Municipalities Initiative (DEMI) in Kosovo. The goal of the DEMI project is to strengthen municipal governance in Kosovo, focusing particularly on building the capacity of municipal administrations and assemblies; increasing citizens’ role in municipal government; improving municipal service delivery; and promoting local economic development.

Crimson supports the efforts of the DEMI project by providing expertise to facilitate local economic growth and improve municipal service delivery. The DEMI Deputy Chief of Party is a Crimson expert, based at project office headquarters in Pristina, Kosovo.

Crimson Capital is part of a Chemonics-led consortium recently awarded the Business Enabling Environment Program (BEEP) in Kosovo. The goal of the BEEP project is to support the development of a business-friendly environment in Kosovo, focusing particularly on better implementation of commercial law; more transparent public tenders; improved access to information about borrowers’ credit history; and reduced barriers to trade.

Crimson supports the efforts of the BEEP project by providing expertise to further the development of the Credit Information Bureau and credit registry system in Kosovo and to support the development of a business friendly-environment overall. The long-term BEEP Credit Advisor is a Crimson expert, based at project office headquarters in Pristina, Kosovo.

The purpose of the Financial Access for Investing in the Development of Afghanistan (FAIDA) project is to build a sustainable, diverse and inclusive financial sector that meets the needs of micro, small and medium sized enterprises (MSMEs) and supports MSMEs in creating new jobs.

Joining the Chemonics International consortium in August 2011, Crimson is supporting FAIDA by building the capacity of FAIDA’s financial institution partners in the development of innovative loan products and by improving their credit risk analysis skills.

With funding from the Norwegian Ministry of Foreign Affairs, Crimson Capital is supporting the establishment of the Kosovoa Society for Information Technology and Communications (STIKK). STIKK was established as a trade association in November 2008 and works to develop the thriving ICT sector of the Kosovo economy.

STIKK currently represents more than 55 Kosovo ICT companies and is managed by its Board of Directors and executive management. With support from Crimson, STIKK is implementing a number of activities to support the development of the ICT sector in Kosovo, including:

• Compiling market information and conducting research on the ICT market in Kosovo and in the region;
• Informing the Kosovo ICT sector on relevant trends in the industry throughout Europe and about business and development opportunities;
• Lobbying to address issues such as customs tax on the ICT sector;
• Attracting investment and businesses interested in the ICT sector in the region;
• Implementing a marketing campaign to increase public and private sector exposure to the ICT industry;
• Providing training and capacity building opportunities; and
• Working to improve the ICT education curriculum at learning institutions.

The goal of the Promoting Integrated Development (PDA) project in Peru is to promote sustainable, licit development in communities and regions affected by illicit coca cultivation in Peru. PDA builds on the previous achievements of the Alternative Development Program, which supported the transition of over 800 communities and 70,000 families (over 60% of them former coca growers) to a licit lifestyle after voluntary eradication of their coca crops.

Under PDA, Crimson Capital manages the financial services component and is working to increase and improve access to finance in Peru’s Selva region through the introduction of new products, value chain finance and training and technical assistance to local lenders. The Crimson team is currently assisting eleven banks introduce a credit-linked savings product which is helping rural agricultural producers obtain much needed access to finance. To date, over $16.48 million in credit has been approved to more than 7,450 agricultural producers in the target areas. More than 4,450 savings accounts have been opened, totaling over $6.26 million.

Crimson's experts have also provided assistance in the development and launch of DCA Loan Portfolio Guarantees (LPGs) with seven financial institutions. These DCA LPGs provide guarantees of $11.5 million (to support $23 million in SME lending) in the PDA target areas.

The primary objective of USAID’s AgBiz Program was to sustainably increase the competitiveness of Macedonian agribusiness producers, processers and traders in selected agribusiness value chains. The AgBiz team worked to help Macedonian agribusinesses enter export markets for value added food products, enhance market linkages along the selected value chains, improve business management and operations, build income-generating opportunities for agribusinesses and create new employment.





Crimson worked through a subcontract to ARD on AgBiz to help Macedonian agribusinesses source capital, enable them to expand and improve production, and increase sales. Crimson experts assisted agribusinesses access over $7.4 million in debt financing and over $9 million in equity to expand their operations and complete trade deals. To further support agribusinesses source capital, Crimson experts developed the Finance Guide for Agribusinesses and SMEs. The guide provides detailed explanation of the financial products and services available to Macedonian agribusinesses and practical information on how to apply for them.

The Crimson team also assisted fresh fruit and vegetables producers and marketers to improve their processes, install more efficient drip irrigation systems, upgrade storage facilities, and enhance their export marketing capabilities. Crimson experts organized six study tours (in South Africa, Israel, USA, Holland, Poland and Croatia) with a focus on pre/post harvest handling of fresh products. In addition, Crimson organized seven B2B meetings and assisted Macedonian exporters participate in three trade fairs, including Fruit Logistica Berlin, World Food Moscow, and Novi Sad International Agricultural Fair. As a result, Macedonian agribusinesses increased sales by over $12.5 million in just three years. To further promote international competiveness, Crimson experts assisted agricultural producers and processors implement HACCAP, ISO 20,000 and Global Gap.

Crimson also assisted the establishment of the Macedonian Agro Exporters Association (MAEA), the first trade association in Macedonia representing fresh fruits and vegetables exporting companies.

Through the USAID FS Share contract, Crimson implemented the “FS Share Stability Pilot Project” (FSSP) in Armenia, under a subcontract to Chemonics International. FSSP focused on rapidly identifying, adapting and introducing applicable financial products to increase Armenian SME access to finance in targeted value chains.

In just six months, Crimson advisors supported two Armenian partner banks in developing and marketing new debt products designed specifically for SMEs, including Purchase Order Finance (POF). By the close of FSSP project assistance (December 2009 - July 2010), the two partner banks had fully integrated these new debt products into their existing loan portfolio line and had exceeded USAID SME lending targets for the project more than two times over.

As part of the Commercial Legal and Institutional Reform (CLIR) IQC, this USAID-funded activity was designed to assist the Supreme Court of the Republic of Indonesia in the development of the nation's commercial court and in the establishment of an anticorruption court. The project supported reforms in these specialized courts, with emphasis on improving operational capacity, increasing government transparency, developing case management capacity and facilitating public access to information. Crimson experts contributed to the project in the areas of court administration and reform, under a subcontract to Booz Allen Hamilton.

Under EMSG, Crimson Capital provided advisory services to the Ministry of Energy and Mining (MEM), the Project Steering Committee (PSC) of the Lignite Power Technical Assistance Project (LPTAP), and the Government of Kosovo for reform in the energy sector. Activities included assistance on the development of the 3 billion EUR LPTAP program consisting of a new lignite mine and 2,000 MW lignite-fired power plant, future disposition of existing power plants, legal and regulatory reform, and the privatization to a foreign strategic investor of the distribution and supply functions of Korporata Energjetike e Kosova (KEK), the electric utility. Crimson Capital was a subcontractor to BearingPoint on this activity.

The goal of this project was to stimulate trade and investment, create jobs and reduce poverty in El Salvador. The project targeted eight financial institutions to expand lending and other financial services to underserved markets and to introduce viable loan products that better serve SME financing needs. Of the eight partner financial institutions selected, six are commercial banks and two are Non-Banking Financial Institutions (NBFIs).

In addition to the work of the resident Chief of Party, Crimson Capital experts provided short-term expertise to help partner institutions develop new working capital finance and leasing products to better reach the SME clients. Crimson’s experts also conducted an analysis of potential products that partner banks may employ to address market gaps.

This activity was designed to build the capacity of a network of newly developed agribusiness service centers across the country. The main objective was to create a rural agricultural business promotion system that is market-driven, demand-based and customized to the end-user in the delivery of services to improve production, marketing and business practices. Under the project, Crimson Capital developed a business plan for the main service center, focused on long-term sustainability beyond donor funding.

• Supported the introduction of leasing and purchase order finance in the Kosovo market, including supporting the development of the Law on Leasing.
  
• Facilitated two new joint ventures totaling $6 million.
  
• Developed the DCA Agricultural Loan Portfolio Guarantee with Raiffeisen Bank, which got Raiffeisen to go into agricultural lending, hire and train specialized agricultural loan officers, and make loans throughout Kosovo to farmers and processors. As a result, the 10 million Euro DCA loan portfolio guarantee program for the agricultural sector issued through Raiffeisen Bank and was fully utilized in less than two years.
  
• Designed and implemented two Kosovo Finance Fairs, connecting more than 2,000 businesses with new credit opportunities.

Crimson Capital developed case studies for the IFC and USAID on licensing reform, trade across borders and contract enforcement in Kenya, Rwanda, Tanzania and Uganda. The case studies focused on reforms in areas of relevance to the World Bank Doing Business rankings. The analysis looked at the history and development of reforms, implementation to date and the challenges and benefits of new approaches to improve the ease of doing business in each of the four countries.

• Creating detailed restructuring plans
• Assuring due diligence in technical, commercial, financial, tax, and legal frameworks
• Delivering recommendations on the structure and regulation of the electricity market in line with European standards
• Preparing and implementing actual restructuring and privatization

Crimson completed a detailed study for the IFC on the development of debt capital markets in Bangladesh, focusing on issuance of corporate bonds and asset-backed securities (including mortgage-backed securities). This included a thorough analysis of the current state of the Bangladesh debt market, profiles of institutional investors and analysis of secondary markets as well as analysis of the current legal and regulatory environment. The study also provided recommendations for removing critical impediments and actions to be taken in the short, medium and long term to improve the functioning of both primary and secondary markets.