Building an Entrepreneurship Ecosystem for Women in Mongolia www.asiafoundation.org

For many Mongolians, the booming capital, Ulaanbaatar, is synonymous with economic opportunity and a new life. Half the population now lives in the capital, most of them in the so-called ger areas, unplanned districts often lacking essential infrastructure like water and electricity and isolated from commercial activity. Starting a business here and keeping it running is hard, and even harder for women. Yet, with women comprising nearly 40 percent of the country’s entrepreneurs, Mongolia’s economic future is tied to their ability to participate in the marketplace.

While the female-to-male ratio of labor-force participation in the formal sector is relatively high in Mongolia compared to other countries in the region, women in business still face steep challenges in acquiring business skills, developing networks, and securing financing.

Take 27-year-old Undrakh, who started her handicraft business several years ago in her home but struggled to sell her products. Although full of passion, she lacked the skills at the outset to keep accounts, market her products, establish sales channels, and understand customer feedback—it was all uncharted water. Living in a ger area, she faced the constant challenge of traveling with large and unwieldy baskets to deliver to customers, a few at a time, in the city center.

Fast-forward to today, and Undrakh has a registered LLC with a well-appointed studio office in the center of Ulaanbaatar, two assistants, and a steady stream of regular orders from bigger businesses.

Undrakh is one of 28 graduates of Mongolia’s first-ever Women’s Business Center and Incubator Project, funded by the Korea International Cooperation Agency (KOICA) and The Asia Foundation’s Lotus Circle. The WBC supports a growing number of women business owners like Undrakh by providing high-quality business support services and an enabling environment for women entrepreneurs.

Since opening in 2016, the WBC has trained over 5,000 women and developed a regular client base of 2,000 entrepreneurs. For clients like Undrakh, the center is valuable not only for its high-quality business support and development services, but also for its open environment, where women from all walks of life gather to share information and exchange ideas.

While business-support centers do exist in Mongolia, the WBC stands alone in addressing the unique needs of women entrepreneurs, particularly single mothers and those with disabilities or from low-income groups. Close partnerships with grassroots service organizations allow the project to attract participants from marginalized communities, who are typically excluded from capacity-building efforts. Services include basic and intermediate business training and one-on-one advising, finance training and consulting, a coworking space, a business library, and a children’s playroom.

The WBC’s flagship initiative is an accelerated business incubator providing an intense four-month, tailored, business-development program to selected women entrepreneurs. The incubator offers participants a wide range of opportunities with practical, positive outcomes. Five to nine women are chosen for each class—28 women have graduated from the incubator to date—and the selection process has become increasingly competitive.

The program provides four stages of intensive business support: product development, identifying target clients and developing marketing strategy, achieving successful market penetration, and establishing binding contracts with investors and larger vendors. Incubator participants also have access to regularly organized pop-up-shop events and other sales or investment opportunities. Those without their own office may use the incubator at no cost while in the program. This four months of intensive development becomes a platform for networking and companionship, and alumni often return to the center to help other women.

The WBC has been recognized domestically and internationally, most recently by a visit from President Khaltmaagiin Battulga on May 14. The president met with incubator graduates to discuss their challenges and achievements, viewing their various products and expressing support for women’s economic empowerment.

The WBC’s social impact can be measured in the lives of its clients: women who are creating employment opportunities for other women, shifting from informal cottage enterprises to formal businesses, and experiencing higher self-esteem and improved status in their communities. As the most active network of women entrepreneurs in Ulaanbaatar, the WBC is helping to create a vigorous ecosystem of Mongolian women entrepreneurs.

Amarzaya Naran is The Asia Foundation’s project manager for the Women’s Business Center and Incubator Project in Mongolia. She can be reached at amarzaya.naran@asiafoundation.org. Soomin Jun is the Women’s Business Center and Incubator Project consultant in Mongolia. She can be reached at soomin.jun@asiafoundation.org. The views and opinions expressed here are those of the authors and not those of The Asia Foundation.

First dual registration approved www.montsame.mn

Ulaanbaatar /MONTSAME/ On May 23, at the meeting of the Financial Regulatory Commission the request from Erdene Resource Development Corp. (TSX:ERD) for dual registration of shares on Mongolian Stock Exchange was approved. The company listed on Toronto Stock Exchange requested to register 4 million shares worth of CAD 1.2 million.

Discovery minerals LTD. signs agreement on Mongolia gold www.news.mn

Discovery Minerals Ltd. has signed an agreement for its Mongolia Gold Project. The Board of Directors is pleased to announce that after several months of negotiations an agreement has now been executed with Canadian company Meritus Minerals Limited.

National currency appreciation indicates positive economic tendency www.montsame.mn

Ulaanbaatar /MONTSAME/ The Central Bank presented Mongolia’s economic review today as of the first four months of 2018.

Mongolian visa issuance regulation facilitated www.montsame.mn

Ulaanbaatar/MONTSAME/ Mongolian visa issuance regulation has been facilitated. A single and double-entry visa for up to 90 days of ‘H’ classification will be granted without permission to emigrants, foreign national born from Mongolian citizen and their family members. ‘H’ visa is issued for a foreign national who is to visit for private purpose.

Cabinet plans privatising MIAT and other key state assets www.news.mn

Earlier today, the Mongolian Cabinet discussed privatisation of certain key state entities.

Russia & other countries can demand $3.5bn in compensation from US over tariffs www.rt.com

Turkey, Japan and Russia have calculated how much US tariffs would add to the cost of steel and aluminum exports to America, and submitted their claims to the World Trade Organization.

IPTV accounts for 11.7 percent of telecommunications revenue www.ubinfo.mn

Communications Regulatory Commission of Mongolia informed that the total number of Internet Protocol television (IPTV) users increased to 241.7 thousand by the end of 2017, which is 27.7 percent higher than the previous year.

Mongolia – EU – ILO project on labor launched www.montsame.mn

Ulaanbaatar /MONTSAME/ The International Labor Organization (ILO), government agencies, Mongolian Employers’ Federation (MONEF), Confederation of Mongolian Trade Unions (CMTU) and labour right advocates gathered on May 22 to discuss their joint action on forced labour, child labour and trafficking in persons for labour exploitation.

Rio Tinto to Mongolia: Back Off if You Want More Investment www.investingnews.com

In a presentation at the Mongolia Economic Forum on Monday (May 21), Rio Tinto’s (ASX:RIO,LSE:RIO,NYSE:RIO) copper and diamond chief executive, Arnaud Soirat, handed out advice to Mongolia’s leaders on how to attract — and keep — foreign investment.

In short: stick to the rule of law and don’t meddle in projects, or investors and their money will flee.

Soirat described Rio Tinto’s multi-billion dollar Oyu Tolgoi copper mine as a “test case for future investment in Mongolia,” and noted that the world is watching what the government is doing.

The company has been experiencing difficulties in Mongolia over the last few months, with delays in the construction of an underground expansion weighing down profits. What’s more, it’s faced extra tax bills from the government and changing demands on power supplied to the mine.

The forum Soirat was presenting to was attended by the highest-ranking members of the government, including the president, the prime minister and members of parliament — which has been in dispute with mine operators this year.

Rio Tinto is the operator of Oyu Tolgoi through Turquoise Hill Resources (TSX:TRQ), and the Mongolian government owns a 34-percent stake in the mine.

Soirat was diplomatic in his presentation, schmoozing with Mongolia’s leadership, but delivering a sharp message: hands off.

“There is no doubt Oyu Tolgoi Underground is a complex and difficult project and it will require Rio Tinto’s balance sheet and technological competence to succeed,” he said.

“We are confident we can pull it off but we do need your trust, patience and support, please let us get on with the work of continuing to build a world class business,” Soirat added.

He used Chile as an example of what Mongolia could become in regards to copper production, saying that mining investment can act as a springboard for future diversification.

“Mongolia has all the ingredients to become a successful resource nation and to use her mineral revenue to fuel sustainable, long-term, diversified growth,” he commented.

He said that for Mongolia to maintain a course for success, it must become a stable investing environment with laws that the government abides by.

Further, he said that companies rely on “the sancity of key investment agreements” to ensure stability, and that “fair and consistent application of the law requires working with partners and investors so they have confidence in the system.”

The company will no doubt be hoping the message was heard loud and clear. Rio Tinto has so far invested US$7 billion in Mongolia, and Soirat said that by the end of the ongoing underground development works the company could have invested US$12 billion — more than Mongolia’s annual GDP.

Upon completion of the Oyu Tolgoi underground expansion, the mine is expected to produce 560,000 tonnes of copper a year.

Rio Tinto isn’t the only company Mongolia has been scuffling with; earlier in May, Mongolian Copper fended off more attempts by Ulaanbaatar to nationalize the 49 percent of the Erdenet copper mine that the government didn’t control.

Mongolian Copper Chairman Mukhbaatar Myagmar clearly feels the same way as his fellow miners, having warned previously that the government’s attempts to seize Erdenet could damage the country’s reputation as a place to invest.