EBRD credit line of €5 million blended with EU-funded investment incentives for MSMEs in Kosovo
By Joel Cela
The European Bank for Reconstruction and Development (EBRD) is scaling up green economy investments in Kosovo in cooperation with the European Union (EU) and Raiffeisen Bank Kosovo (RBKO).
The EBRD will provide financing of up to €5 million(US$5.3 million) to RBKO for on-lending to micro, small and medium-sized enterprises (MSMEs) under the SME Go Green programme, launched with the support of the EU.
The funds will be fully dedicated to green economy investments, including energy efficiency, resource efficiency and renewable energy projects, which are expected to contribute to reducing greenhouse gas emissions in the country.
In addition, EU-funded technical assistance will support MSMEs and partner financial institutions with tailored capacity building and training, providing the necessary know-how to maximise the potential investment.
At least one-third of the EBRD loan to RBKO will be dedicated to investments in the agribusiness sector, including value chains. Twenty-five per cent of the financing will go to MSMEs led by women.
On successful completion and validation of their investment projects, MSMEs will be eligible for an investment incentive payment of 15 per cent of the loan amount, for investments in renewable energy, and in the agribusiness sector and its value chains. In addition, local MSMEs will benefit from an incentive payment of 10 per cent of the loan amount for other eligible green economy investments.
EBRD Head of Kosovo, Sergiy Maslichenko said: “We are proud to continue our support in Kosovo for MSMEs, a vital component of the local economy, with various programmes tailored to their needs. This initiative is key to pushing the green transition forward at a granular level, helping local firms achieve sustainability and enhance their resilience. With the EU and Raiffeisen Bank Kosovo as our partners, we are well positioned to foster a greener private sector in the country.”
RBKO is the largest commercial bank in Kosovo and an EBRD partner since 2019, with a proven track record in SME credit lines.
CEO of Raiffeisen Bank Kosovo, Anita Kovacic added: “We are pleased to continue our longstanding partnership with the EBRD on this programme, empowering Kosovo’s businesses, especially women-led firms, to adopt sustainable practices. Micro and small businesses are Kosovo’s economic backbone, and we are committed to supporting their growth and sustainability.”
RBKO becomes the first partner financial institution in Kosovo to benefit from the EBRD’s SME Go Green, following the programme’s official launch there in September 2024.
The EBRD is the largest institutional investor in Kosovo, with projects in both the private and public sectors. The Bank has invested around €680 million through more than 110 projects since starting operations in the country in 2012.
