EBRD extends €7 million for MSMEs and women entrepreneurs in Kosovo

• EBRD extends up to €5 million to support MSMEs in Kosovo
• Additional €2 million to promote women’s entrepreneurship, supported by the European Union through EFSD+
• At least 35 per cent of financing to support green economy transition projects

The European Bank for Reconstruction and Development (EBRD) is strengthening access to finance for micro, small and medium-sized enterprises (MSMEs) in Kosovo, with a financing package of up to €7 million to KEP Trust, the country’s largest microfinance institution.

The financing comprises a senior loan of up to €5 million directed to local MSMEs, as well as a loan of up to €2 million under the Western Balkans Women in Business (WiB) programme dedicated to women-led MSMEs.

The MSME loan will be used for on-lending to privately owned small businesses across Kosovo, with a particular focus on the micro segment, helping to improve entrepreneurship and market competitiveness. At least 35 per cent of the proceeds will be allocated to projects that align with the EBRD’s Green Economy Transition (GET) approach, supporting investments that contribute to environmental sustainability.

The WiB loan aims to enhance access to finance and know-how for women-led MSMEs, promoting women’s participation in business and supporting inclusive entrepreneurship. It is the second WiB loan to KEP Trust, reinforcing the EBRD’s commitment to economic inclusion in the Western Balkans.

The WiB financing is supported by technical assistance funded by the European Union under its European Fund for Sustainable Development Plus (EFSD+), which will provide capacity-building support to both KEP Trust and eligible women-led enterprises. In addition, first-loss risk cover worth 10 per cent of the loan will be made available to KEP Trust under EFSD+, strengthening risk mitigation and enabling increased lending to women-led enterprises.

The EBRD’s Head of Kosovo, Sergiy Maslichenko, said: “We are pleased to extend our partnership with KEP Trust. This financing further strengthens access to finance for MSMEs, which are a vital part of Kosovo’s economy. By supporting women-led businesses and green investments, we are helping entrepreneurial firms to grow, create jobs and contribute to a more inclusive and more sustainable economy.”

KEP Trust’s CEO, Adrian Alo, said: “This new EBRD support reinforces our ability to serve micro and small businesses across Kosovo. The additional resources will help us expand financing for entrepreneurs, support women-led enterprises and increase investments that contribute to greener and more resilient business practices.”

KEP Trust, founded in 1999, plays an important role in expanding access to finance for underserved segments of the economy, including micro enterprises and women entrepreneurs.

The EBRD has invested €909 million in Kosovo across 150 projects to date, with the majority of financing supporting the private sector. The Bank’s priorities in the country include strengthening private-sector competitiveness, advancing the green economy transition and supporting inclusive growth.