EFSE strengthens long-term strategy with EUR 50 million A Shares investment from KfW

Frankfurt, 10 December 2025 – The European Fund for Southeast Europe (EFSE) is strengthening its long-term capacity to support financial inclusion and micro, small, and medium-sized enterprises (MSMEs) across Southeast Europe and the Eastern Neighbourhood, supported by a EUR 50 million A Shares top-up investment from KfW, EFSE’s initiator and key shareholder.

The 10-year investment underscores KfW’s continued confidence in EFSE’s long-term strategy and its relevance as a flagship impact investment vehicle and a strategic tool to advance inclusive private sector development in the region. The capital increase reinforces EFSE’s ability to operate countercyclically, particularly in challenging economic environments, and to continue delivering financing where it is most needed.
KfW’s A Shares top-up strengthens EFSE’s blended finance structure and provides a solid foundation to expand innovative financing solutions, support partner financial institutions, and deliver measurable economic and social impact, particularly for underserved entrepreneurs and communities. It also reinforces EFSE’s strong track record in mobilizing private sector capital, helping to catalyze further investor participation and sustain the Fund’s growth trajectory.

Dr. Markus Aschendorf, Head of Division at KfW, shared:
“As the initiator of the European Fund for Southeast Europe, KfW is proud to reaffirm its commitment through a €50 million A-Shares Investment. This engagement underscores our strategic priority to foster sustainable economic development and financial inclusion in the region. Through close collaboration with EFSE, we aim to empower micro, small, and medium enterprises by improving access to finance, thereby promoting growth and stability in Southeast Europe and the EU Eastern neighbourhood. This initiative is a concrete expression of KfW’s development mandate and its long-term vision to advance resilient, inclusive financial systems in emerging markets.”

Linda Broekhuizen, Chairperson of EFSE, said:
“KfW’s continued commitment reflects a shared vision and long-standing partnership built on trust, impact, and alignment on development goals. This investment strengthens EFSE’s ability to support MSMEs across the region, particularly in times of heightened uncertainty, and to remain a reliable partner for local financial institutions and investors alike.”

Since its inception, EFSE has expanded access to finance for underserved entrepreneurs and households, particularly in rural areas and among women-led businesses, contributing to inclusive growth and economic resilience across its regions. The new A Shares investment underscores KfW’s continued commitment to EFSE and strengthens the Fund’s role as a key instrument for advancing financial inclusion and resilient private sector development in Southeast Europe and the Eastern Neighbourhood.

 

About EFSE
The European Fund for Southeast Europe (EFSE) is an impact investment fund to drive economic development and prosperity in Southeast Europe and the Caucasus. Through its two sub-funds—the Regional Sub-Fund (RSF) and the Ukraine Sub-Fund (USF)—EFSE provides tailored financial solutions to foster entrepreneurship, strengthen financial inclusion, and support local economies. EFSE was initiated in 2005 by KfW Development Bank with the financial support of the German Federal Ministry for Economic Cooperation and Development (BMZ) and the European Commission. As the first public-private partnership of its kind, EFSE draws its capital from donor agencies, international financial institutions, and private institutional investors. Finance in Motion GmbH, Germany, serves as EFSE’s Portfolio Manager and Hauck & Aufhäuser Fund Services S.A., Luxembourg, acts as manager.  

For more information on the European Fund for Southeast Europe, please visit: www.efse.lu  

 

About Finance in Motion
Finance in Motion structures, manages, and advises almost €4 billion across 10 funds, all classified as SFDR Article 9. These private market funds drive impact for people and planet through regional financial intermediaries, direct investments, advisory and capacity building. Founded in Germany, with local expertise from Latin America to Eastern Europe, it has been investing in emerging markets for over 20 years.  
For more information, please visit: www.finance-in-motion-com