EBRD and EU Partner with Raiffeisen Bank Kosovo to Boost Green Investments for MSMEs

EBRD and EU Partner with Raiffeisen Bank Kosovo to Boost Green Investments for MSMEs

(IN BRIEF) The EBRD, in partnership with the EU and Raiffeisen Bank Kosovo (RBKO), has launched a €5 million SME Go Green programme to support sustainable investments by micro, small, and medium-sized enterprises (MSMEs) in Kosovo. The initiative focuses on energy efficiency, renewable energy, and resource management, with one-third of the funding dedicated to agribusinesses and 25% targeting women-led firms. MSMEs will also benefit from EU-funded incentives of up to 15% of loan amounts for qualifying green projects. Raiffeisen Bank Kosovo is the first local partner in this programme, which aims to accelerate Kosovo’s green transition and boost private sector resilience.

(PRESS RELEASE) LONDON, 23-Nov-2024 — /EuropaWire/ — The European Bank for Reconstruction and Development (EBRD), in partnership with the European Union (EU) and Raiffeisen Bank Kosovo (RBKO), has launched a new initiative to enhance green economy investments for micro, small, and medium-sized enterprises (MSMEs) in Kosovo. Through the SME Go Green programme, the EBRD is providing a €5 million credit line to RBKO for on-lending to local businesses, focusing on sustainability and energy efficiency projects.

The funds will enable MSMEs to invest in energy efficiency, resource management, and renewable energy, contributing to reduced greenhouse gas emissions in Kosovo. A portion of the financing will specifically target agribusinesses, with at least one-third allocated to the sector, while 25% will support women-led businesses.

MSMEs completing their projects successfully will be eligible for EU-funded investment incentives, receiving a reimbursement of 15% of the loan amount for renewable energy and agribusiness projects, and 10% for other green investments. In addition, EU-backed technical assistance will provide training and capacity-building for both MSMEs and financial institutions to maximize the impact of these investments.

“This programme is a vital step in accelerating Kosovo’s green transition,” said Sergiy Maslichenko, EBRD Head of Kosovo. “By partnering with the EU and Raiffeisen Bank Kosovo, we aim to empower local businesses to adopt sustainable practices, strengthening the private sector’s resilience and fostering long-term growth.”

Raiffeisen Bank Kosovo, the largest commercial bank in the country, has been an EBRD partner since 2019 and will be the first financial institution in Kosovo to participate in the SME Go Green initiative.

“Our continued collaboration with the EBRD allows us to support Kosovo’s businesses, particularly women-led firms, in adopting sustainable solutions,” said Anita Kovacic, CEO of Raiffeisen Bank Kosovo. “Micro and small enterprises are essential to Kosovo’s economy, and we are committed to their growth and long-term sustainability.”

The EBRD, Kosovo’s largest institutional investor, has supported over 110 projects in the country, totaling around €680 million since beginning operations in 2012. This new initiative reflects the Bank’s commitment to advancing green practices and strengthening private sector development in Kosovo.

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Email: Group-PressUnit@ebrd.com

SOURCE: EBRD