EBRD lends Serbia €100 million to expand broadband to rural areas

• EBRD provides €18 million loan for fibre broadband rollout in Serbia’s countryside
• Bilateral donors to the WBIF support the project with €1.7 million grant
• Improved access to education and information to students and people in rural areas

The European Bank for Reconstruction and Development (EBRD) is backing Serbia’s digitalisation development by providing finance for expansion of broadband infrastructure in rural areas.

A €100 million EBRD loan will finance the roll-out of mid-mile broadband infrastructure in rural areas with limited high-speed internet connectivity, as well as mid-mile and last-mile infrastructure in very rural areas. This investment builds on the pilot Rural Broadband Rollout in Serbia financed by the EBRD in 2020, and is now expanding to reach even wider areas of the country.

The investment is expected to help create new economic opportunities for the local population in rural areas by expanding broadband access to at least 145,000 households and strengthening digital literacy which will also support the adoption of e-government services in currently underserved regions. In total, the Project will cover 1,200 currently underserved settlements in over 100 different municipalities, located across the country.

The project is supported by the Western Balkans Investment Framework (WBIF) and bilateral donors under the framework of the

Even before the coronavirus pandemic lack of broadband connections for rural schools had been identified as a growing problem for Serbia – one-quarter of all pupils attend a rural school and in recent years rural enrolment growth has outpaced growth in all other school locales. Without adequate high-speed internet infrastructure, rural schools and their students risk being left behind their peers in urban areas.

Zsuzsanna Hargitai, EBRD Regional Director, Western Balkans, said: “Being born in a rural area was identified as one of the factors for inequality of opportunity in EBRD regions, including Serbia. Creating better links – both physical and technological – between urban and rural areas helps to ensure better quality of life in rural zones and prevent the Serbian countryside brain drain.”

The Western Balkans Investment Framework (WBIF) supports socio-economic development and EU accession across the Western Balkans through the provision of finance and technical assistance for strategic investments. It is a joint initiative of the European Union, financial institutions, bilateral donors and the governments of the Western Balkans. The largest individual cumulative pledges to date have been made by Norway, Sweden, Austria, Germany, Italy, and United Kingdom. Austria is the current WBIF Co-Chair.

To date, the WBIF has allocated €1.3 billion in grants for €20.8 billion estimated investments in well connected transport, energy and digital networks, renewable energy and energy efficiency, water supply and wastewater systems, flood protection, education, research and cultural establishments, healthcare and judicial facilities, which are crucial for sustainable development in the region.