Grants Disbursed for Micro Business Projects
of Especially Vulnerable IDPs and Refugees in Saatli and Sabirabad
On 1 September 2004, Danish Refugee Council signed grant agreements with 50
refugees and internally displaced persons (IDPs) forming part of seven micro
business groups in Saatli and Sabirabad districts of central Azerbaijan.
The DRC grants worth US$ 20243.9 (twenty thousand two hundred and forty three
point nine) in, aim to strengthen self-reliance capacities of especially vulnerable
households and thereby contribute to sustain an adequate standard of living
of 219 people.
DRC launched the business grant project as a pilot project in May 2004. Using
participatory methods, the key project activities include:
Ø Identification by the targeted communities of economic potentials of
individuals forming part of especially vulnerable households;
Ø Facilitation of the formation and development of plans for new micro
businesses of groups of such individuals, and
Ø Granting of the necessities for the business groups to implement their
business plans, including equipment and business training during the course
of one year
Successful implementation of the one year business plans attached to the grant
agreements, signed on 1 September 2004, will provide for an increased the level
of consumption and investment of the households of which the beneficiaries form
In addition, successful implementation of the business plans will qualify the
beneficiaries to take loans with a local microfinance institution (MFI) during
the second half of 2005.
Working with local MFIs through its non-bank credit organisation, Caucasus Credit
LLC, DRC is committed to ensure availability of microfinance services to vulnerable
people with economic capabilities in Saatli and Sabirabad, among other districts
in Azerbaijan. Microfinance enables clients to develop their micro businesses
in sustainable manner.
By demonstrating capacity to facilitate the graduation of beneficiaries, from
dependency on grants to demand for microfinance services, DRC hopes to attract
funding to continue its business grant project, thereby effectively contributing
to reduce the level of poverty among Azerbaijan's conflict-affected population.
Baku Branch Office
DRC in South Caucasus