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Agriculture sector is a backbone of the Mongolian economy. It constitutes 31.2% of the country’s GDP and 53.9% of the labor force. Women in agriculture represent 21% of entire labor force. In agriculture value chains in Mongolia, women play a crucial role main processors of livestock raw materials, dairy, wool and cashmere products. However, women in rural areas are engaged in low skill- low value jobs /businesses. The biggest constraint for rural women, herders and farmers, is the access to finance. SME loans represent only 17 percent of total bank loans and primarily in urban area. Although international donor organizations assist in creation and training of cooperatives, there are no ready lending products available for such cooperatives. Women in rural area also lack collateral and generally viewed as risky due to the lack of sustainable businesses. Access to market is another significant challenge in making rural women businesses sustainable in vast / sparsely populated country.
Our solution is based on a comprehensive mobile application to provide access to funding with the digitalization of market place combined with training and network. The key component of this B2B platform is online lending to women cooperatives in the rural area. It will provide value chain financing / factoring based on Supply / Purchase Agreement tailored on specific needs of the women cooperatives with flexible disbursement and repayment schedule of unsecured loan up to USD 20,000. DEM will provide a matching loan from DEM NBFI to the grants / concessional debt from its funding resources. B2B platform will advertise, sell products creating digital market place while users will receive information on product supply / purchase tenders, ongoing programs / training from international donor organizations that support micro-entities in rural area. It will also provide online training, matching of mentors and assist in organizing women network events with support from Women Entrepreneurs Club NGO.