The Regional Challenge Fund (RCF) is designed to enhance youth employability. Companies that team up with educational institutions receive funding for the establishment of professional education programs. For 2025, six agro-industrial companies in the Stip region have been awared for their program together with the Faculty of Agriculture in Stip and the Secondary school in Sveti Nicole.
Funded by the German Federal Ministry for Economic Cooperation and Development and co-financed by the Swiss Government, the RCF is implemented by the KfW Development Bank and executed by the Western Balkans 6 Chamber Investment Forum (WB6-CIF). This collaborative effort aims to foster sustainable economic growth by investing in cooperative training projects that bridge the gap between vocational education and the labor market.
Since its inception, the RCF has made significant contributions. In 2021, 37 projects were selected, allocating EUR 15.4 million. In 2025, RCF received 187 applications, 86 consortia were shortlisted. 3 Albanian, 12 Bosnian-Hercegovinian, 5 Kosovar, 1 Montenegrin, 1 Macedonian and 3 Serbian consortia were elected.
A new call is expected for 2026. Interested companies should get together and contact educational instituiti
Core Objectives of the RCF
The RCF focuses on supporting cooperative training (CT) programs, which are implemented through partnerships between vocational training institutes (VTIs) and enterprises. These programs are designed to:
- Increase youth employability by equipping trainees with practical, job-relevant skills.
- Boost enterprise competitiveness by ensuring a steady supply of skilled workers.
- Promote innovation in vocational education and training (VET) systems.
- Encourage regional cooperation among VTIs and businesses in the Western Balkans.
Who Can Apply?
The RCF invites applications from consortia comprising:
- Vocational Training Institutes (VTIs): Public or private institutions offering nationally recognized qualifications.
- Enterprises: At least two companies from any sector, committed to providing work-based learning opportunities.
- Projects must provide training for at least 30 students by the end of the second year.
- Training programs must lead to nationally recognized qualifications and align with national occupational standards.
- Consortia must demonstrate a commitment to inclusivity, ensuring access for all ethnic groups and vulnerable populations.
Supported Activities
The RCF provides funding for a range of activities aimed at enhancing the quality and relevance of vocational training, including:
- Infrastructure and Equipment: Financing for the rehabilitation, extension, or construction of training facilities, as well as the procurement of modern training equipment.
- Teacher and Trainer Development: Training for VET teachers and in-company trainers to improve pedagogical skills and technical expertise.
- Advisory Support: Guidance on curriculum development, occupational health and safety, and the integration of new technologies.
- Promotion of Cooperative Training: Activities to raise awareness and attract trainees to CT programs.
Funding and Application Process
- Funding Range: Consortia can apply for grants ranging from EUR 150 000 to EUR 600 000.
- Matching Contribution: Applicants must contribute at least 10 % of the total project cost, either financially or in-kind.
- Application Process: The process is conducted entirely online through the RCF’s Grant Management System. Interested consortia must submit an Expression of Interest (EoI) during the open call period, followed by a full application if shortlisted.
Selection Criteria
Projects are evaluated based on:
- Conceptual Criteria: Alignment with labor market needs and national standards.
- Feasibility: Practicality and sustainability of the proposed training programs.
- Ambition: Innovativeness and potential for scalability.
- Inclusivity: Commitment to gender equality and the inclusion of vulnerable groups.
For more information on how the BMBC can assist your business in adapting to these changes, please contact us.
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