Accelerate Development of Digital Businesses for Kosovo

Kosovo’s economic outlook since its independence has been positive, but its economic growth lags behind Western Balkan and other European counterparts. Against this backdrop, UNDP Kosovo launched its 2021-2025 Kosovo Programme to foster Kosovo’s green and digital transformation and implement its Digital Transformation Portfolio, which outlines a suite of interventions tailored to the country.  

This Capstone project focused on broadening the Digital Transformation Portfolio. With the objective of expediting Kosovo's digital transformation, the Capstone project delved into the analysis of successful digital transformation case studies from around the globe. Following an initial assessment of the Digital Transformation Portfolio, the project narrowed down the scope to two main areas of analysis: 1) Upskilling the labor force for Kosovo’s digital preparedness and 2) Innovative Financial Mechanisms for financing a startup ecosystem. The final report analysed the background and geopolitical context of the country, assessed the existing barriers that hamper digitalization, and identified adaptable strategies and initiatives that could be implemented in Kosovo to strengthen its digital economy and foster long-term sustainable growth. Three recommendations were suggested. Regarding upskilling of the labor force, the report suggested UNDP launches a blended learning institution that offers digital training through a combination of online and offline teaching methods and the creation of a UNDP Digital Skills bootcamp specifically designed for young women. Regarding innovative financial mechanisms, the report proposed creating a one-stop program to catalyse funding, competition, and collaboration to help Kosovar startups and SMEs thrive in the digital economy.