Recovery and Empowerment through Market Access and Transformation

Russia’s invasion of Ukraine has severely impacted livelihoods and the economic sector in Ukraine, resulting in considerable destruction of businesses and infrastructure, widespread unemployment, and economic instability. A large percentage of the 4.8 million Ukrainian IDPs have sought safety and stability in the 8 oblasts selected for this project and need to be integrated into local economies.

REMARKET is a planned as a 2-phase project running over 6 years. Its first phase (2024-2027) builds upon two pilot projects conducted in Ukraine by Caritas Switzerland: Emergency Livelihoods Support (ELIS) implemented by Caritas Ukraine and the Gotjob Livelihood Project implemented by Caritas Spes.

The REMARKET project aims to enhance market access and foster economic empowerment for IDPs, returnees and host communities, through supporting the startup and growth of selected MSMEs and providing individual vocational training and job placements.

REMARKET blends the Triple (HDP) Nexus and the Market System Development (MSD) approaches. This dual strategy aims at strengthening Ukrainian businesses to foster long-term livelihoods development and economic stability, while also fostering social cohesion among IDPs, returnees, and host community members, and addressing immediate livelihood needs.

The first phase of the project will also lay the groundwork to transition into an MSD-focused project in the second phase, with the goal of contributing to longer-term economic development. REMARKET thereby aims at addressing a key driver of local tensions and grievances in Ukraine.

REMARKET aims to enhance the business operations, resilience, and income generation opportunities of 221 MSMEs owned by IDPs, returnees, and host community members, and to improve the income of 1’300 IDPs, returnees, and host community members through sustainable employment.

To reach this goal, REMARKET focuses on developing and strengthening Ukrainian communities and businesses through targeted initiatives that enhance market access and foster economic empowerment, leading to more stable and sustainable income generation, economic stability, and social cohesion for IDPs, returnees, and host community members. These initiatives are grouped in three pillars:

• 1) Entrepreneurship and MSME Support: To support the resumption of business activities and/or scale them up, REMARKET will provide business grants and business development services to MSMEs, as well as coaching and mentoring, psychosocial peer support groups and link businesses to local networks. Moreover, it will conduct a pilot with financial institutions to improve MSME financing by introducing tailored loans for IDPs, returnees and host community members. Since MSMEs account for the largest share of employment and economic activity in Ukraine, supporting and expanding them is critical for long-term economic recovery.
• 2) Job Market Access and Skills Training: By providing improved skills and facilitating access to the job market, REMARKET will enhance the employability of IDPs, returnees, and host community members. As part of this pillar, it will provide technical assistance to Job Skills providers to pilot industry-specific training programs for the target groups while also linking them to job opportunities through a Cash-for-Jobs intervention and job seeking services from Job Skills partners. These activities also include psychosocial support and are designed with a conflict-sensitive lens and focus on the empowerment of women job seekers and entrepreneurs.
• 3) Market Systems Development of Targeted Sectors: The final pillar aims to build the foundation for delivering an MSD programme in Phase 2. MSD focuses on improving the efficiency and inclusiveness of markets, rather than directly providing goods or services. This allows the project to target and improve market sectors with high relevance and growth potential for IDPs, returnees, and host community members as Ukraine moves towards stabilisation.