Delegation of the European Union to the United Republic of Tanzania and the East African Community

09/23/2024 | Press release | Distributed by Public on 09/23/2024 04:00

EBRD and EU launch SME Go Green programme in Kosovo - New credit line to increase green funding for local businesses

  • EBRD to extend financing under SME Go Green programme, complemented by EU grant incentives
  • Programme to include dedicated funds to agribusiness and women-led businesses
  • SME Go Green to be active in all six Western Balkans countries

The European Bank for Reconstruction and Development (EBRD) and the European Union (EU) are stepping up their support for green economy investments in Kosovo.

The EBRD is launching a new credit line to local banks for on-lending to small and medium-sized enterprises (SMEs) under the SME Go Green programme with the support of the EU.

The programme is expected to be active in Kosovo, alongside Albania, Bosnia and Herzegovina, North Macedonia, Montenegro and Serbia. Kosovo is the third country in the Western Balkans to benefit from this initiative after Bosnia and Herzegovina and Serbia. In total, at least €120 million will be invested in the six countries altogether.

The programme will encourage the competitiveness of SMEs by helping eligible Kosovan businesses to access finance for investments compliant with EU and international standards.

The funding provided under the programme will be fully dedicated to green economy investments, including energy efficiency, resource efficiency and renewable energy investments, and will help to reduce greenhouse gases in the country.

SME Go Green aims to help the agribusiness sector in Kosovo reduce its environmental impact and become more sustainable and resilient to the risks of climate change.

Another key aspect of the programme is empowering women in business through dedicated funds to support women-led SMEs.

On successful completion of their investment projects, SMEs will be eligible for a cashback grant of 10 per cent of the loan amount, or 15 per cent for investments in renewable energy and the agribusiness value chain.

The SME Go Green programme was launched at an event dedicated to the EBRD's and EU's support to SMEs in Kosovo. The EBRD's Head of Kosovo, Sergiy Maslichenko attended the event, along with Johannes Stenbæk Madsen, Head of Cooperation at the European Union Office in Kosovo, and Artane Rizvanolli, Minister of Economy in Kosovo.

SME Go Green builds on the success of the Kosovo SME Competitiveness Support Programme, and its impact on local businesses was also presented at the event. It delivered a total funding of €29.4 million, coupled with grant incentives of €4.36 million and business advice supported by the EU Instrument for Pre-accession Assistance, to 148 Kosovan businesses between 2018 and 2024.

The EBRD is the largest institutional investor in Kosovo with projects in both the private and public sectors. To date, the Bank has invested around €680 million through more than 110 projects in the country.