High-Impact Support
EFSE's Development Facility is an innovative and unique feature that operates in tandem with the Fund.
It ensures the long-term effectiveness of the Fund's investments in partner institutions within the target region. Moreover, it enhances the development impact of the Fund's investments and increases the outreach of the partner institutions toward the Fund's target groups: micro and small enterprises and private households that would otherwise have no access to financial services. The Development Facility helps to build the institutional structures that are needed to support the responsible use of micro credits granted by the local partner institutions.
To achieve this, the Development Facility complements the Fund with non-financial services and knowledge transfer through:
- technical assistance, consulting and training, tailor made to the specific capacity building needs of each partner institution,
- feasibility and market studies to support the Fund's role as a market enabler, and
- annual impact studies carried out by independent third parties for the Fund.
From a larger macroeconomic point of view, the Development Facility helps strengthen local economies in Southeast Europe, and enhances the region's financial sectors.
To carry out its activities, the Development Facility receives funds from international development institutions and private donations, as well as a share of the Fund's income.
