Socio-Economic and Livelihoods Local Support

Bosnia and Herzegovina (BiH) continues to face deep-rooted socio-economic challenges stemming from its post-conflict legacy, fragmented governance, and underperforming local economies. High unemployment—particularly among youth and women—widespread informality, and emigration pressures exacerbate poverty and socio-economic exclusion, especially in rural and post-conflict municipalities. Municipalities lack the capacity, infrastructure, and systemic tools to facilitate sustainable local economic development (LED). Technical and Vocational Education and Training (TVET) systems remain disconnected from labor market needs, while private sector actors struggle with limited market access and scaling opportunities. SELLS II addresses these issues by transforming municipalities into active facilitators of inclusive, market-driven development.

The overarching goal of the SELLS II project is to foster inclusive, resilient, and sustainable economic growth in Bosnia and Herzegovina by strengthening municipal governance, scaling economically viable SMEs and startups, and aligning TVET services with market strategies. Specific objectives include:

• Enhancing municipal capacities for LED planning and implementation using Market Systems Development (MSD) principles.
• Promoting systemic collaboration between local governments, private sector actors, and TVET institutions.
• Empowering vulnerable populations—including youth, returnees, and women-led households—through co-financed grants, training, and business incubation.
• Institutionalizing the SELLS Model for wider adoption and replication across municipalities.

SELLS II envisions change through a systemic approach that redefines municipalities as strategic co-implementers of economic development. The project’s Theory of Change hinges on:

1. Capacity and Ownership – Municipalities receive training in MSD, planning, and budgeting, enabling them to take ownership of LED strategies.
2. Public-Private Partnerships – Structured dialogues and co-developed action plans enhance coordination and trust between public institutions and private enterprises.
3. Inclusive Grant Schemes – Co-financed grants (with flexible contributions for vulnerable groups) provide targeted financial and technical support to catalyze SME development and market engagement.