Market Systems Development – developing interventions

Employment, private sector development and trade are powerful and interdependent drivers for inclusive economic development and poverty reduction. Small and medium-sized enterprises generate over half of all jobs globally and play an important role in low-income countries. Employment is the main source of income for people living in poverty. Trade is an engine for growth and can lead to more and better jobs. Businesses also provide markets and people with essential goods and services. Inclusive, equal education and lifelong learning decreases poverty and secures individuals’ income generating possibilities. However, several factors constrain people living in poverty from accessing markets, participating in the labour market and benefiting from trade and growth. Sida contributes to inclusive economic development and education where people living in poverty can participate and benefit on equal terms. In total, Sida’s interventions in this area amounted to SEK 4.2 billion in 2025, constituting nearly 19 per cent of Sida’s total disbursements.

Purpose and use

This evaluation assesses Sida’s core institutional support to the Innovation Centre Kosovo (ICK) over the period 2019-2024. The evaluation offers an independent assessment of ICK’s performance, the results achieved through Sida’s support, and the institution’s readiness for long-term sustainability.

Conclusion

Sida’s core support helped ICK remain a relevant and trusted actor in Kosovo’s innovation ecosystem, enabling continuity of services and contributing to digital skills and early-stage entrepreneurship. However, institutional and structural weaknesses limited sustained outcomes and wider impact. ICK’s sustainability will depend on modernising governance, reducing financial vulnerabilities, and repositioning within a more competitive ecosystem. Strengthening these foundations is essential for ICK to build on past investments and continue contributing to Kosovo’s digital and entrepreneurial development.

Recommendation

Sida shifts from a single-institution model toward a broader ecosystem approach, focusing future support on coordinated interventions that strengthen Kosovo’s innovation system. Any future institutional funding should be preceded by stronger governance due diligence, ensuring partners have clear structures, transparency, and compliance.