Mission and History

EFSE's story started with an idea to support the re-development of the war-battered region of Southeast Europe. This idea included the creation of partnerships where public donors would work with private investors to establish a microfinance investment fund. This fund would have an innovative structure and would combine the development of social standards with financial performance goals.

Central to EFSE's mission is to foster economic development and prosperity in Southeast Europe. Qualified partner institutions provide sustainable and additional development finance to micro and small enterprises, and to low-income private households.

EFSE is the successor of various development finance initiatives known as the "European Funds for Bosnia and Herzegovina, Kosovo, Montenegro and Serbia" that were implemented in 1998 as a post-conflict reconstruction effort in Southeast Europe.

An important milestone was the successful transfer of existing refinancing programmes to EFSE. The preceding European funds were merged in one new Fund. EFSE was established in 2005 under the laws of the Grand Duchy of Luxembourg as a "SICAV" together with a regional funding facility for Albania, Bulgaria, FYR Macedonia, Moldova and Romania. The German Government enabled the financing.