The development of a robust private sector is essential for regional socio-economic development and integration, and to improve the region’s competitiveness and job creation. The Economic and Investment Plan (EIP) for the Western Balkans focuses on the importance of supporting start-ups and micro-, small and medium-sized businesses as a means to this end and directs significant investments towards innovation and green growth. To unlock the potential of the private sector, increased EU financing is made available through blending of grants and loans, and guarantees under the Western Balkans Guarantee Facility (EFSD+). This reinforces open, innovative, business friendly eco-systems.
Since 2020, support for private sector development has been consolidated under the WBIF Private Sector Blending, including several prominent initiatives. The Western Balkans Enterprise Development and Innovation Facility (WB EDIF), the European Fund for Southeast Europe (EFSE), the Green for Growth Fund (GGF), and various programmes approved under the WBIF private sector blending calls can all be found here.
Up to €30 billion in investments, including up to €9 billion of EU grant funding, is available under the EU’s Economic and Investment Plan for the Western Balkans. Investment flagship 9 focuses on Investing in the Competitiveness of the Private Sector.
Aiming to facilitate access to financing – a hurdle many businesses in the region face – the European Commission, by partnering with IFIs, channels the funding through WBIF to local Partner Financial Institutions (Banks, Funds, Leasing companies, Microfinance Institutions). This funding is delivered via various financial instruments including loans, equity and guarantees to micro, small and medium-sized enterprises (MSMEs).
Complementing these financial instruments, WBIF also offers technical assistance to help MSMEs enhance their operational efficiency, adopt new technologies and improve their access to European and global markets. This assistance covers project preparation, business planning and capacity building.
EU funds for MSMEs in the Western Balkans
estimated investment
MSMEs supported
jobs supported and/or sustained
MWh/p.a. savings in energy
t/p.a. CO2 emissions reduced
guarantee coverage
technical assistance
Beneficiaries: Albania, Bosnia and Herzegovina, Kosovo*, Montenegro, North Macedonia, Serbia
Lead IFI: EBRD
Start date: December 2022
Status: Under implementation
Total WBIF contribution: €25 million
Total estimated investment: €145 million
Embrace green prosperity with the SME Go Green Programme, a trailblazing initiative led by the European Bank for Reconstruction and Development (EBRD). It focuses on enhancing the green and circular economy, agribusiness and competitiveness investments for small and medium-sized enterprises (SMEs) in the Western Balkans.
The Programme is strategically designed to focus on:
EBRD extends debt financing to SMEs through local commercial banks for qualifying investments. These credit lines are boosted by an EU-funded advisory service and cash-back incentives await SMEs upon successful completion and verification of investments.
Beneficiaries: Albania, Bosnia and Herzegovina, Kosovo*, Montenegro, North Macedonia, Serbia
Lead IFI: EBRD
Start date: December 2023
Status: Under implementation
Total WBIF contribution: €27.6 million
Total estimated investment: €177.6 million
The Go Digital programme supports digitalisation, automation and competitiveness of small and medium-sized businesses (SMEs) across the Western Balkans. Emphasising sustainability, a minimum of 50% of the investments will be green, and at least 30% targeted to regions beyond capital cities thus contributing to regional and rural development.
EBRD extends debt financing to SMEs through local commercial banks for qualifying investments. These credit lines are boosted by an EU-funded advisory service and cash-back incentives await SMEs upon successful completion and verification of investments. The incentives will prioritise high-performing technologies that are less present on the market, mitigating upfront costs.
Some of the eligible digital technologies include automated manufacturing solutions, augmented reality, e-commerce, big data and analytics, and more. Automation investments will cover manufacturing and process equipment, printing, agricultural equipment, etc.
Beneficiaries: Albania, Bosnia and Herzegovina, Kosovo*, Montenegro, North Macedonia, Serbia
Lead IFIs: EIF and KfW
Start date: December 2009
Status: Under implementation
Total EU contribution: €88.6 million
Total estimated investment: circa €762 million
Technical assistance: €4 million
Experience the force of change with the Green for Growth Fund (GGF), a pioneer in financing energy efficiency and renewable energy ventures undertaken by micro, small, and medium-sized enterprises (MSMEs) and households.
GGF empowers by providing funds through local financial institutions or direct investments into qualifying projects and companies.
The commitment doesn’t stop at finance. The GGF Technical Assistance Facility is here to share know-how and technical expertise, ensuring the success of investments. In 2023, the EU further supported the GGF, with a €20 million capital increase in the form of C-share equity, accompanied by €4 million in technical assistance. This replenishment will sustainably build up and expand the supply of effective financing for renewable and efficient energy measures in the region, and contribute to the reduction of energy consumption and greenhouse gas emissions among end-borrowers.
About GGF:
The Fund was launched in 2009 by the European Investment Bank (EIB) and the German Development Bank (KfW) with the backing of the German Federal Ministry for Economic Cooperation and Development (BMZ) and the European Commission (EC). GGF currently operates in 19 markets, including the Western Balkans, and is dedicated to combatting climate change, promoting economic growth, and fostering a sustainable future.
For more information about the Green for Growth Fund, please visit: www.ggf.lu
Beneficiaries: Albania, Bosnia and Herzegovina, Kosovo*, Montenegro, North Macedonia, Serbia
Lead IFI: EBRD
Start date: December 2017
Status: Under implementation
Total EU contribution: €30 million
Total estimated investment: €170 million
Sharpen small and medium-sized enterprises’ (SMEs) competitive edge with the SME Competitiveness Support Programme. This initiative empowers SMEs in the Western Balkans to excel in the EU market by meeting environmental protection, occupational health and safety, and product quality and safety standards.
The European Bank for Reconstruction and Development (EBRD) offers debt financing through local commercial banks for qualifying investments. These credit lines are boosted by an EU-funded advisory service ensuring businesses are well-equipped to meet stringent standards. Cash-back incentives await SMEs upon successful completion and verification of investments.
For more information about the SME Competitiveness Support Programme, please visit: https://web-sme-csp.com/
Beneficiaries: Albania, Bosnia and Herzegovina, Kosovo*, Montenegro, North Macedonia, Serbia
Lead IFI: IFC
Start date: July 2023
Status: Under implementation
Total WBIF contribution: €3.6 million
This is the first programme in the Western Balkans to implement the eco-industrial parks (EcoIP) concept. It aims to demonstrate the feasibility of EcoIP’s by initiating four pilots in industrial parks in the region.
The programme has two components:
Beneficiaries (public/private): Albania, Bosnia and Herzegovina, Kosovo*, Montenegro, North Macedonia, Serbia
Lead IFI: EBRD
Start date: March 2024
Status: Under implementation
Total guarantee coverage: up to €50 million
Technical assistance: up to €2.5 million
The HI-BAR EFSD+ Guarantee accelerates investments in the next generation of climate mitigation measures and business models in the energy and energy-intensive industrial sectors. These include faster green energy transition, enhanced energy security, diversification of energy sources, and transition away from external fossil fuel dependency.
The Guarantee will support the rollout of mature technologies which have not reached critical levels of uptake due to market development barriers or the absence of established energy markets.
Furthermore, the HI-BAR will enable investments in the “next generation” of climate technologies that face high technology risks and demand a significant “green premium”, for the absence of an established market.
The Guarantee may also provide short-term and high-level coverage in support of exploration of critical raw materials, which serve as crucial primary inputs for various future climate technologies. Final recipients of financing will be public utilities, private corporates, and municipalities.
Beneficiaries (public/private): Albania, Bosnia and Herzegovina, Kosovo*, Montenegro, North Macedonia, Serbia
Lead IFI: KfW
Start date: June 2024
Status: Under implementation
Total guarantee coverage: up to €200 million
Technical assistance: up to €10 million
This EFSD+ Guarantee supports market-oriented green transformation in the Western Balkans by:
The Guarantee will enable investments in additional renewable energy (RE) capacities for solar and wind power, the rehabilitation of hydropower plants, smart grids and storage, energy efficiency (EE) measures, and other investments needed to strengthen a comprehensive green transformation.
Final recipients of the financing will be public utilities for investments in RE and grid infrastructure. These utilities will benefit from direct lending at concessional terms, which brings more sovereignty and independence in corporate decision-making, moving utilities closer to markets.
In addition, private corporates will receive EFSD+ guaranteed financing for green transformative investments through private financial institutions.
Beneficiaries: Albania, Bosnia and Herzegovina, Kosovo*, Montenegro, North Macedonia, Serbia
Lead IFI: IFC
Start date: December 2024
Status: Under implementation
Total WBIF contribution: €17.2 million
Total estimated investment: €207.2 million
Western Balkans economies are characterised by elevated levels of energy intensity, high pollution levels and an energy mix dominated by fossil fuels.
Micro, small, and medium-sized enterprises (MSMEs) interested in adopting energy-efficient and environmentally-friendly processes often encounter significant barriers to do so, including limited access to capital, insufficient skills, and a lack of awareness about green technologies and available financial solutions. In addition to the climate financing gap, capital markets in Western Balkans remain underdeveloped, with medium- to long-term local currency funding almost non-existent.
To address some of these challenges, the Western Balkans Climate Programme finances climate change-related sub-loans that support the transition from high to low-carbon economies. The Programme will increase access to climate finance, including energy efficiency and clean energy production for sub-borrowers in the region. This will enable businesses to improve their environmental impact by implementing climate-smart investments. In addition, the Programme will support the development of capital markets by issuing green bonds. The Programme will be accompanied by technical assistance to strengthen the climate-related capacity of Partner Financial Intermediaries (PFIs) by increasing outreach to MSMEs and building the PFIs’ potential to issue green bonds.
Beneficiaries: Albania, Bosnia and Herzegovina, Kosovo*, Montenegro, North Macedonia, Serbia
Lead IFI: EIB
Start date: December 2024
Status: Under implementation
Total WBIF contribution: €23.7 million
Total estimated investment: €363.7 million
The Innovation and Green Transformation Facility supports innovative small and medium-sized enterprises (SMEs) and Mid-Caps and some of their green investments in the Western Balkans.
At least 70% of the Facility will be dedicated to investments in innovative products and processes, research, development and innovation (RDI), and companies driven by innovation. The remaining 30% will be allocated to investments in climate change mitigation, primarily in agriculture, adaptation, and other green projects. At least 80% of the final beneficiaries will be SMEs, with the remaining 20% being Mid-Caps.
EIB extends debt financing to SMEs and Mid-Caps through local commercial banks for qualifying investments. These credit lines are boosted by an EU-funded cash-back incentives await final beneficiaries upon successful completion and verification of investments. SMEs and Mid-Caps will also receive TA to identify appropriate technologies and solutions for their businesses and develop bankable investment projects.
Beneficiaries: Albania, Bosnia and Herzegovina, Kosovo*, Montenegro, North Macedonia, Serbia
Lead IFI: EDFI Management Company
Start date: October 2024
Status: Under implementation
Total guarantee coverage: up to €12 million
Technical assistance: up to €0.6 million
The EDFI Carbon Sinks aims to enhance carbon storage and expand the sustainable management of land and/or wetlands while delivering high-quality emission reductions, restoring biodiversity, and improving the livelihoods for forest dependent communities and smallholders. Carbon sinks are nature-based solutions that absorb carbon dioxide (CO2) from the atmosphere.
This EFSD+ Guarantee supports projects in five sub-sectors: Natural Forests, Smallholder Forestry, Plantation Forestry, Agricultural & Carbon Sink Investments, and Forest Product Processing.
Investments benefiting from the Guarantee will be made directly in private sector forestry and agribusiness companies or indirectly via equity and carbon credit funds.
Alongside investments, the Guarantee provides technical assistance for project preparation to ensure that the environmental and social risks are appropriately managed.
Beneficiaries: Albania, Bosnia and Herzegovina, Kosovo*, Montenegro, North Macedonia, Serbia
Lead IFI: EBRD
Start date: December 2022
Status: Under implementation
Total WBIF contribution: €25 million
Total estimated investment: €145 million
Embrace green prosperity with the SME Go Green Programme, led by the European Bank for Reconstruction and Development (EBRD). It focuses on enhancing the green and circular economy, agribusiness and competitiveness investments for small and medium-sized enterprises (SMEs) in the Western Balkans.
The Programme is strategically designed to focus on:
EBRD extends debt financing to SMEs through local commercial banks for qualifying investments. These credit lines are boosted by an EU-funded advisory service and cash-back incentives await SMEs upon successful completion and verification of investments.
Beneficiaries: Albania, Bosnia and Herzegovina, Kosovo*, Montenegro, North Macedonia, Serbia
Lead IFIs: EIF and KfW
Start date: June 2006
Status: Under implementation
Total EU contribution: €109.9 million
Total estimated investment: circa €3.6 billion
Discover opportunities with the European Fund for Southeast Europe (EFSE), a driving force for micro and small enterprises (MSEs), farmers and private households.
EFSE empowers through finance, offering microfinancing via local commercial banks, microfinance institutions, and non-bank entities.
It’s not only about funding. A dedicated Development Facility strengthens local financial intermediaries, fortifies financial sectors, and bolsters resilience. The Entrepreneurship Academy partners with local incubators and accelerators, to provide training, resources, mentoring, networking opportunities, and more.
About EFSE:
EFSE was initiated in 2005 by KfW Development Bank, supported by the German Federal Ministry for Economic Cooperation and Development (BMZ) and the European Commission (EC). The EFSE mission is to ignite economic development and enhance lives in Southeast Europe and the Eastern Neighbourhood Region. As a pioneering public-private partnership, EFSE pools resources for enduring impact.
For more information about the European Fund for Southeast Europe, please visit: www.efse.lu
Beneficiaries: Albania and Serbia
Lead IFI: CDP
Start date: January 2023
Status: Under implementation
Total WBIF contribution: €10 million
Total estimated investment: €130 million
Unleash the potential of underserved micro, small, and medium-sized enterprises (MSMEs) across the Western Balkans with the Green Finance for Inclusion programme. By investing in innovative energy efficiency and climate-resilient measures, this programme will drive transformative change.
The support is particularly focused on empowering women- and youth-led MSMEs in the sectors of social entrepreneurship, sustainable agriculture, circular economy and eco-tourism.
Cassa Depositi e Prestiti (CDP) is the leading financial institution, extends credit lines to local financial institutions, including Microfinance Institutions (MFIs), to facilitate on-lending to MSMEs under favourable terms.
Thanks to EU backing, eligible MSMEs can access loans with favourable conditions like:
Beneficiaries: Albania, Bosnia and Herzegovina, Kosovo*, Montenegro, North Macedonia, Serbia
Lead IFI: EBRD
Start date: December 2023
Status: Under implementation
Total WBIF contribution: €27.6 million
Total estimated investment: €177.6 million
The Go Digital programme supports digitalisation, automation and competitiveness of small and medium-sized businesses (SMEs) across the Western Balkans. Emphasising sustainability, a minimum of 50% of the investments will be green, and at least 30% targeted to regions beyond capital cities thus contributing to regional and rural development.
EBRD extends debt financing to SMEs through local commercial banks for qualifying investments. These credit lines are boosted by an EU-funded advisory service and cash-back incentives await SMEs upon successful completion and verification of investments. The incentives will prioritise high-performing technologies that are less present on the market, mitigating upfront costs.
Some of the eligible digital technologies include automated manufacturing solutions, augmented reality, e-commerce, big data and analytics, and more. Automation investments will cover manufacturing and process equipment, printing, agricultural equipment, etc.
Beneficiaries: Albania, Bosnia and Herzegovina, Kosovo*, Montenegro, North Macedonia, Serbia
Lead IFI: EBRD
Start date: December 2023
Status: Under implementation
Total WBIF contribution: €3 million
EBRD will develop and implement a comprehensive policy programme to enhance the competitiveness of the private sector, including MSMEs, within the framework of the Structural Reform Facility - Competitiveness Policy Priorities for Western Balkans.
The Programme is structured in two phases:
(1) the development of Competitiveness Policy Priorities (CPP) reports which assess key growth opportunities and barriers in the private sector and provides recommendations for policy measures,
(2) the implementation of a set of remedial policy actions to address identified gaps and improve regulatory frameworks, institutional strength and the overall business environment at country and regional level, following the CPP’s recommendations.
Beneficiaries: Albania, Bosnia and Herzegovina, Kosovo*, Montenegro, North Macedonia, Serbia
Lead IFI: EIB
Start date: December 2024
Status: Under implementation
Total WBIF contribution: €23.7 million
Total estimated investment: €363.7 million
The Innovation and Green Transformation Facility supports innovative small and medium-sized enterprises (SMEs) and Mid-Caps and some of their green investments in the Western Balkans.
At least 70% of the Facility will be dedicated to investments in innovative products and processes, research, development and innovation (RDI), and companies driven by innovation. The remaining 30% will be allocated to investments in climate change mitigation, primarily in agriculture, adaptation, and other green projects. At least 80% of the final beneficiaries will be SMEs, with the remaining 20% being Mid-Caps.
EIB extends debt financing to SMEs and Mid-Caps through local commercial banks for qualifying investments. These credit lines are boosted by an EU-funded cash-back incentives await final beneficiaries upon successful completion and verification of investments. SMEs and Mid-Caps will also receive TA to identify appropriate technologies and solutions for their businesses and develop bankable investment projects.
Beneficiaries: Albania, Bosnia and Herzegovina, Kosovo*, Montenegro, North Macedonia, Serbia
Lead IFI: EBRD
Start date: December 2017
Status: Under implementation
Total EU contribution: €30 million
Total estimated investment: €170 million
Sharpen small and medium-sized enterprises’ (SMEs) competitive edge with the SME Competitiveness Support Programme. This initiative empowers SMEs in the Western Balkans to excel in the EU market by meeting environmental protection, occupational health and safety, and product quality standards.
The European Bank for Reconstruction and Development (EBRD) offers debt financing through local commercial banks for qualifying investments. These credit lines are boosted by an EU-funded advisory service ensuring businesses are well-equipped to meet stringent standards. Cash-back incentives of up to 15%, await SMEs upon successful completion and verification of investments.
For more information about the SME Competitiveness Support Programme, please visit: https://web-sme-csp.com/
Beneficiaries: Albania, Bosnia and Herzegovina, Kosovo*, Montenegro, North Macedonia, Serbia
Lead IFI: IFC
Start date: July 2023
Status: Under implementation
Total WBIF contribution: €3.6 million
This Programme initiates the implementation of the eco-industrial parks (EcoIP) concept in the Western Balkans and demonstrate the first-ever EcoIP’s proof of concepts (POC) through the implementation of EcoIP pilots in four industrial parks and/or separate business units within industrial parks in the region.
It will be performed through the following two components:
Beneficiaries: Albania and Serbia
Lead IFI: CDP
Start date: January 2023
Status: Under implementation
Total WBIF contribution: €10 million
Total estimated investment: €130 million
Unleash the potential of underserved micro, small, and medium-sized enterprises (MSMEs) across the Western Balkans with the Green Finance for Inclusion programme. By investing in innovative energy efficiency and climate-resilient measures, this programme will drive transformative change.
The support is particularly focused on empowering women- and youth-led MSMEs in the sectors of social entrepreneurship, sustainable agriculture, circular economy and eco-tourism.
Cassa Depositi e Prestiti (CDP) is the leading financial institution, extends credit lines to local financial institutions, including Microfinance Institutions (MFIs), to facilitate on-lending to MSMEs under favourable terms.
Thanks to EU backing, eligible MSMEs can access loans with favourable conditions like:
Beneficiaries: Albania, Bosnia and Herzegovina, Kosovo*, Montenegro, North Macedonia, Serbia
Lead IFIs: EIF and KfW
Start date: June 2006
Status: Under implementation
Total EU contribution: €109.9 million
Total estimated investment: circa €3.6 billion
Discover opportunities with the European Fund for Southeast Europe (EFSE), a driving force for micro and small enterprises (MSEs), farmers and private households.
EFSE empowers through finance, offering microfinancing via local commercial banks, microfinance institutions, and non-bank entities.
It’s not only about funding. A dedicated Development Facility strengthens local financial intermediaries, fortifies financial sectors, and bolsters resilience. The Entrepreneurship Academy partners with local incubators and accelerators, to provide training, resources, mentoring, networking opportunities, and more.
About EFSE:
EFSE was initiated in 2005 by KfW Development Bank, supported by the German Federal Ministry for Economic Cooperation and Development (BMZ) and the European Commission (EC). The EFSE mission is to ignite economic development and enhance lives in Southeast Europe and the Eastern Neighbourhood Region. As a pioneering public-private partnership, EFSE pools resources for enduring impact.
For more information about the European Fund for Southeast Europe, please visit: www.efse.lu
Beneficiaries: Albania, Bosnia and Herzegovina, Kosovo*, Montenegro, North Macedonia, Serbia
Lead IFIs: EIF and KfW
Start date: December 2009
Status: Under implementation
Total EU contribution: €88.6 million
Total estimated investment: circa €762 million
Technical assistance: €4 million
Experience the force of change with the Green for Growth Fund (GGF), a pioneer in financing energy efficiency and renewable energy ventures undertaken by micro, small, and medium-sized enterprises (MSMEs) and households.
GGF empowers by providing funds through local financial institutions or direct investments into qualifying projects and companies.
The commitment doesn’t stop at finance. The GGF Technical Assistance Facility is here to share know-how and technical expertise, ensuring the success of investments. In 2023, the EU further supported the GGF, with a €20 million capital increase in the form of C-share equity, accompanied by €4 million in technical assistance. This replenishment will sustainably build up and expand the supply of effective financing for renewable and efficient energy measures in the region, and contribute to the reduction of energy consumption and greenhouse gas emissions among end-borrowers.
About GGF:
The Fund was launched in 2009 by the European Investment Bank (EIB) and the German Development Bank (KfW) with the backing of the German Federal Ministry for Economic Cooperation and Development (BMZ) and the European Commission (EC). GGF currently operates in 19 markets, including the Western Balkans, and is dedicated to combatting climate change, promoting economic growth, and fostering a sustainable future.
For more information about the Green for Growth Fund, please visit: www.ggf.lu
Beneficiaries: Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia, Serbia
Lead IFI: EIF
Start date: June 2022
Status: Under implementation
Total guarantee coverage: up to €60 million
Total estimated investment: circa €750 million
The Guarantee4SME Resilience empowers micro, small and medium-sized enterprises (MSMEs) with improved access to affordable finance. By sharing the risks with commercial banks, the guarantee is dedicated to supporting smaller SMEs, with a minimum 25% allocation to micro-businesses.
Thanks to EU backing, eligible MSMEs can access loans with favourable conditions like:
Launched in June 2022 in the wake of the COVID-19 pandemic and the ongoing energy crisis; this initiative aids MSMEs in bolstering their resilience while progressing towards a more sustainable, low-carbon economy.
Beneficiaries: North Macedonia, Albania, Bosnia and Herzegovina
Lead IFI: EBRD
Start date: December 2022
Status: Under implementation
Total WBIF contribution: €2.5 million
This programme will help the private sector across the Western Balkans implement Inclusive and Socially Responsible Procurement (ISRP). The concept will be piloted at a regional solid waste investment in North Macedonia.
The programme has two components.
Beneficiaries (private): Albania, Bosnia and Herzegovina, Kosovo*, Montenegro, North Macedonia, Serbia
Lead IFI: EBRD
Start date: August 2024
Status: Under implementation
Total guarantee coverage: up to €40 million
Technical assistance: up to €4 million
The Growth for All addresses some of the key challenges for MSMEs in the Western Balkans through a supply of dedicated financing and technical assistance that promotes sustainable economic growth in underserved segments and achieves lasting change. Financing will be made available through Partner Financial Intermediaries (PFIs) in all six WB economies and will target specifically agri-businesses, women-led MSMEs, and youth-led MSMEs.
The Guarantee is designed to motivate PFIs to finance the targeted segments perceived to be too risky, by providing both credit lines and guarantee coverage for a share of the losses sustained.
Technical assistance will be essential for the successful deployment and implementation of the products and achievement of the objectives of the Programme. Its scope will include capacity building to PFIs, direct support to agribusinesses, marketing, and eligibility criteria verification.
Beneficiaries: Albania, Bosnia and Herzegovina, Kosovo*, Montenegro, North Macedonia, Serbia
Lead IFI: KfW
Start date: September 2024
Status: Under implementation
Total guarantee coverage: up to €48 million
Technical assistance: up to €2 million
This Guarantee aids Albania, Kosovo, and Serbia in post-pandemic recovery, enhancing the region's competitiveness and job creation. Through risk-sharing guarantees and technical assistance, it unlocks financing for micro, small and medium-sized enterprises (MSMEs), prioritising start-ups, rural MSMEs, and those operating in the manufacturing sector.
The Guarantee will be implemented through local Credit Guarantee Funds (CGFs), which will enable Partner Financial Intermediaries (PFIs) to finance target MSMEs by mitigating lending risks through partial reimbursement of losses in the event of MSME defaults.
Thanks to EU backing, eligible MSMEs can access loans with favourable conditions like:
Beneficiaries: Albania, Bosnia and Herzegovina, Kosovo*, Montenegro, North Macedonia, Serbia
Lead IFI: EBRD
Start date: December 2021
Status: Under implementation
Total EU contribution: €30 million
Total estimated investment: €75 million
The Enterprise Expansion Fund (ENEF) is an equity fund that catalyses the expansion of local small and medium-sized enterprises (SMEs) and high-potential mid-caps in the Western Balkans.
Focusing on providing equity, quasi-equity and debt financing, ENEF II provides the financial boost needed for small businesses to grow and expand. Launched in December 2021, supported by the European Commission, EBRD and other development finance institutions, up to €75 million is expected to be available.
ENEF II goes beyond financing, by providing extensive pre- and post-investment support. Success is more than numbers, so support is given to identifying and addressing Environmental, Social and Governance (ESG) risks and opportunities for businesses.
ENEF: a proven legacy
The journey began in 2014 with the launch of the Enterprise Expansion Fund (ENEF) under the Western Balkans Enterprise Development and Innovation Facility (WB EDIF), backed by an initial capital of €48.5 million. Guided by the European Bank for Reconstruction and Development (EBRD), ENEF I successfully invested in 16 companies by July 2020.
Beneficiaries: Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia, Serbia
Lead IFI: EIF
Start date: June 2022
Status: Under implementation
Total guarantee coverage: up to €60 million
Total estimated investment: circa €750 million
The Guarantee4SME Resilience empowers micro, small and medium-sized enterprises (MSMEs) with improved access to affordable finance. By sharing the risks with commercial banks, the guarantee is dedicated to supporting smaller SMEs, with a minimum 25% allocation to micro-businesses.
Thanks to EU backing, eligible MSMEs can access loans with favourable conditions like:
Launched in June 2022 in the wake of the COVID-19 pandemic and the ongoing energy crisis; this initiative aids MSMEs in bolstering their resilience while progressing towards a more sustainable, low-carbon economy.
Beneficiaries: Albania, Bosnia and Herzegovina, Kosovo*, Montenegro, North Macedonia, Serbia
Lead IFI: IFC
Start date: December 2024
Status: Under implementation
Total WBIF contribution: €17.2 million
Total estimated investment: €207.2 million
Western Balkans economies are characterised by elevated levels of energy intensity, high pollution levels and an energy mix dominated by fossil fuels.
Micro, small, and medium-sized enterprises (MSMEs) interested in adopting energy-efficient and environmentally-friendly processes often encounter significant barriers to do so, including limited access to capital, insufficient skills, and a lack of awareness about green technologies and available financial solutions. In addition to the climate financing gap, capital markets in Western Balkans remain underdeveloped, with medium- to long-term local currency funding almost non-existent.
To address some of these challenges, the Western Balkans Climate Programme finances climate change-related sub-loans that support the transition from high to low-carbon economies. The Programme will increase access to climate finance, including energy efficiency and clean energy production for sub-borrowers in the region. This will enable businesses to improve their environmental impact by implementing climate-smart investments. In addition, the Programme will support the development of capital markets by issuing green bonds. The Programme will be accompanied by technical assistance to strengthen the climate-related capacity of Partner Financial Intermediaries (PFIs) by increasing outreach to MSMEs and building the PFIs’ potential to issue green bonds.
Beneficiaries: Albania, Bosnia and Herzegovina, Kosovo*, Montenegro, North Macedonia, Serbia
Lead IFI: EBRD
Start date: December 2019
Status: Under implementation
Total EU contribution: €15 million
Empower small and medium-sized enterprises (SMEs) with the transformative Advice for Small Businesses initiative. It offers comprehensive advisory services spanning strategy and operations to quality management, financial reporting, energy efficiency and beyond.
The programme operates through a network of local consultants and international experts, accessing cutting-edge best practices. The mission is clear - equip small businesses in the Western Balkans with the tools to enhance their business performance and sharpen their competitive edge.
The European Bank for Reconstruction and Development (EBRD) pilots the Advice for Small Businesses Programme through the Western Balkans Enterprise Development and Innovation Facility (WB EDIF).
For more information about Advice for Small Businesses, please visit https://www.ebrd.com/small-business-support/advice-for-small-businesses.html
Beneficiaries (public/private): Albania, Bosnia and Herzegovina, Kosovo*, Montenegro, North Macedonia, Serbia
Lead IFI: EBRD
Start date: March 2024
Status: Under implementation
Total guarantee coverage: up to €50 million
Technical assistance: up to €2.5 million
The HI-BAR EFSD+ Guarantee accelerates investments in the next generation of climate mitigation measures and business models in the energy and energy-intensive industrial sectors. These include faster green energy transition, enhanced energy security, diversification of energy sources, and transition away from external fossil fuel dependency.
The Guarantee will support the rollout of mature technologies which have not reached critical levels of uptake due to market development barriers or the absence of established energy markets.
Furthermore, the HI-BAR will enable investments in the “next generation” of climate technologies that face high technology risks and demand a significant “green premium”, for the absence of an established market.
The Guarantee may also provide short-term and high-level coverage in support of exploration of critical raw materials, which serve as crucial primary inputs for various future climate technologies. Final recipients of financing will be public utilities, private corporates, and municipalities.
Beneficiaries (public/private): Albania, Bosnia and Herzegovina, Kosovo*, Montenegro, North Macedonia, Serbia
Lead IFI: KfW
Start date: June 2024
Status: Under implementation
Total guarantee coverage: up to €200 million
Technical assistance: up to €10 million
This EFSD+ Guarantee supports market-oriented green transformation in the Western Balkans by:
The Guarantee will enable investments in additional renewable energy (RE) capacities for solar and wind power, the rehabilitation of hydropower plants, smart grids and storage, energy efficiency (EE) measures, and other investments needed to strengthen a comprehensive green transformation.
Final recipients of the financing will be public utilities for investments in RE and grid infrastructure. These utilities will benefit from direct lending at concessional terms, which brings more sovereignty and independence in corporate decision-making, moving utilities closer to markets.
In addition, private corporates will receive EFSD+ guaranteed financing for green transformative investments through private financial institutions.
Beneficiaries: Albania, Bosnia and Herzegovina, Kosovo*, Montenegro, North Macedonia, Serbia
Lead IFI: EDFI Management Company
Start date: October 2024
Status: Under implementation
Total guarantee coverage: up to €12 million
Technical assistance: up to €0.6 million
The EDFI Carbon Sinks aims to enhance carbon storage and expand the sustainable management of land and/or wetlands while delivering high-quality emission reductions, restoring biodiversity, and improving the livelihoods for forest dependent communities and smallholders. Carbon sinks are nature-based solutions that absorb carbon dioxide (CO2) from the atmosphere.
This EFSD+ Guarantee supports projects in five sub-sectors: Natural Forests, Smallholder Forestry, Plantation Forestry, Agricultural & Carbon Sink Investments, and Forest Product Processing.
Investments benefiting from the Guarantee will be made directly in private sector forestry and agribusiness companies or indirectly via equity and carbon credit funds.
Alongside investments, the Guarantee provides technical assistance for project preparation to ensure that the environmental and social risks are appropriately managed.
This map provides an overview of all active WBIF programmes for the private sector and the financial intermediaries that deliver them.
Use the filters below to find the best option for you.
Number of Partner Financial Institutions: 17
Number of Programmes: 5
More about available programmes: PDF
Number of Partner Financial Institutions: 5
Number of Programmes: 5
More about available programmes: PDF
Number of Partner Financial Institutions: 8
Number of Programmes: 4
More about available programmes: PDF
Number of Partner Financial Institutions: 4
Number of Programmes: 4
More about available programmes: PDF
Number of Partner Financial Institutions: 7
Number of Programmes: 4
More about available programmes: PDF
Number of Partner Financial Institutions: 11
Number of Programmes: 6
More about available programmes: PDF
* This designation is without prejudice to positions on status and is in line with UNSCR 1244/1999 and the ICJ Opinion on the Kosovo declaration of independence.
Number of Partner Financial Institutions: 5
Number of Programmes: 5
More about available programmes: PDF
Number of Partner Financial Institutions: 17
Number of Programmes: 5
More about available programmes: PDF
Number of Partner Financial Institutions: 8
Number of Programmes: 4
More about available programmes: PDF
Number of Partner Financial Institutions: 4
Number of Programmes: 4
More about available programmes: PDF
Number of Partner Financial Institutions: 7
Number of Programmes: 4
More about available programmes: PDF
Number of Partner Financial Institutions: 11
Number of Programmes: 6
More about available programmes: PDF
