EBRD and EU Program Helps Armenian Companies Invest in Sustainable Technology

EBRD and EU Program Helps Armenian Companies Invest in Sustainable Technology

(IN BRIEF) The European Bank for Reconstruction and Development (EBRD) and the European Union (EU) have jointly launched the EU4Business-EBRD Credit Line program in Armenia to support small and medium-sized enterprises (SMEs) in adopting greener technology, improving product quality, and boosting their competitiveness. The program provides EBRD loans and EU grant incentives through local financial institutions, benefiting over 70 SMEs in sectors such as manufacturing, agriculture, food and beverages, and medical services. The program has provided €14.5 million in loans to small businesses for 89 investment projects over the past two years, with five Armenian commercial banks involved. Successful investments receive up to 15% cashback financed by the EU under its EU4Business initiative. Examples of successful investments include the adoption of new equipment by Yerevan Chocolate Company, investment in solar panels by Tamara and Ani dairy company, and the introduction of the Kaizen business philosophy to improve the efficiency of production by Asedl, one of the largest glass processing manufacturers in the Caucasus.

(PRESS RELEASE) LONDON, 14-Apr-2023 — /EuropaWire/ — The European Bank for Reconstruction and Development (EBRD), a multilateral developmental investment bank, announces that over 70 small and medium-sized enterprises (SMEs) in Armenia have invested in green technology and increased their competitiveness, thanks to the EU4Business-EBRD Credit Line program, a joint initiative of the European Bank for Reconstruction and Development (EBRD) and the European Union (EU).

Launched in 2021, the program aims to support companies in Armenia looking to replace old technology with more energy-efficient updates, enhance product quality, and boost their competitiveness at home and abroad. The initiative offers EBRD loans, combined with EU grant incentives that target small businesses through local financial institutions. So far, the program has provided €14.5 million in loans to small businesses for 89 investment projects in the last two years. The program involves five Armenian commercial banks.

Under the EU4Business initiative, successful investments made by companies in sectors ranging from manufacturing to agriculture, food and beverages to medical services, receive up to a 15% cashback financed by the EU.

Among the beneficiaries is Yerevan Chocolate Company, with decades of experience in the chocolate-making business. The company invested in new equipment through Armswissbank, enabling them to follow EU standard food safety requirements, making the chocolate-making process several times more efficient, and creating safe working conditions for their employees.

Tamara and Ani, a dairy company that produces calcium-rich products, along with ice cream and soft drinks, is also a beneficiary of the program. The company is investing in solar panels through a loan from Ameriabank to reduce energy bills and minimize the impact on the environment.

Asedl, one of the largest glass processing manufacturers in the Caucasus, has also modernized its production process by investing in automotive equipment that minimizes human contact with glass, making the production process safer and the final product of the highest quality. With the support of the EBRD’s Advice for Small Businesses and funding from the EU, the company is introducing the Kaizen business philosophy to improve the efficiency of its production facility.

The EU4Business-EBRD Credit Line program has demonstrated its commitment to helping small businesses in Armenia adopt greener technology, enhance their product quality, and become more competitive, thereby contributing to the country’s economic growth.

‘’We are delighted to witness the tangible results of the investments that translate into better products, growth and improved working conditions,” said George Akhalkatsi, Head of the EBRD Yerevan Resident Office, at an event dedicated to presenting progress to date of the programme.

‘’We are continuing our work in close partnership with local commercial banks and the European Union to further boost the competitiveness and economic integration of Armenian SMEs. Our aim is to make local companies greener, and more competitive on local and international markets.’’

”We are excited to be part of this program supporting the green transition and competitiveness of Armenian SMEs. Investing in new and notably green technologies will not only improve the environmental performance of key economic sectors, but will also prepare SMEs to be more resilient and adapt to the transition towards a greener economy. The latter is an area where the EU will do much more in the coming years to support Armenia,” said Ambassador Andrea Wiktorin, Head of EU Delegation to Armenia.

Beyond Armenia, the EU4Business-EBRD Credit Line is active in Georgia, Moldova and Ukraine. So far, over 1,300 SMEs have benefited from this regional programme, and more are due to benefit in the future.

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Email: press@ebrd.com

SOURCE: EBRD