In order to help market participants better understand the current status of the provision and access to rural finance in Albania, and to draw conclusions on how to ultimately promote the access of agricultural and rural micro and small enterprises in Albania to finance, the EFSE Development Facility conducted an analysis of the gap between supply and demand of financial services in three rural regions of Albania. The research team conducted a supply study comprised of personal interviews with banks, microfinance institutions and other stakeholders in the sector, as well as a demand study, based on a face-to-face enterprise survey and focus group meetings.

On the supply side, it was found that with the exception of a few banks, namely ProCredit Bank and Raiffeisen Bank, MFIs and especially the savings and credit associations are the most actively used providers of financial services to rural areas. The client survey revealed a rather low utilisation of financial services and that access to financial services is perceived as difficult. The findings also pointed at the precarious economic situation of many rural MSEs, particularly farmers with small plots of land cultivated at a subsistence level. Although the study identified a strong savings culture among the rural population, the analysis overall confirmed a low level of financial literacy and awareness of financial products among the rural population and a lack of delivery channels of financial services to rural enterprises, while identifying some unmet client demand for accessible and affordable financial services.

For more information or to obtain the complete pilot study, please contact:

Ms Milena Bertram
Manager EFSE Development Facility

Phone: +49-69-97787650-27
Fax: +49-69-97787650-10
E-mail: m.bertram@finance-in-motion.com