Strengthening sustainable practices in North Macedonia's manufacturing sector
Strengthening sustainable practices in North Macedonia's manufacturing sector
Against a backdrop of global trade uncertainty, the EU is looking to increase trade and shorten value chains with its nearest neighbours. This provides compelling growth opportunities for North Macedonia’s manufacturing sector, but businesses will need to accelerate innovation, modernise sustainably and align with EU regulations.
EFSE is working across the Western Balkans, including in North Macedonia, to ensure that SMEs improve domestic and export market competitiveness, and effectively grasp long-term opportunities – supporting job creation, higher-value exports, and deeper integration in European value chains.
As part of this approach, we have partnered with Sparkasse Bank North Macedonia to expand access to finance and ESG advisory support for SMEs and strengthened the Bank’s sustainable lending practices.
Impact Spotlight
Ohrid-based manufacturer FEDS produces high-precision telescopic slides and linear rails used in high-specialization industries and commercial applications. Industries as diverse as automotive, electronics, furniture, and machine building all require FEDS’ precision, performance, and reliability. Founded in 2000, this specialized manufacturer is currently exporting to the EU, United States, Canada and Australia.
With 39 employees and in-house production and engineering capabilities, FEDS has already implemented advanced ESG practices, including:
- Obtaining advanced certifications for health, safety and environmental management systems
- Maintaining high standards in water treatment and waste management
- Generating around 70% of its energy from solar power
- Sourcing its raw materials from top-tier responsible global suppliers, including, the EU
If the company is to preserve its competitive edge in highly specialized global markets, it must continue to meet international partners’ increasingly stringent ESG requirements and disclosures, attract skilled labour, and maintain high performance standards and business continuity.
This is where EFSE’s advisory & capacity building services added significant value. FEDS was one of 20 Sparkasse Bank SME clients to receive tailored guidance and a practical ESG roadmap to strengthen its long-term strategy. This included advisory on advancing ESG data collection and developing its first sustainability report, improving workforce retention through employee well-being and community support programs, and establishing a succession plan to reduce operational costs and solidify its competitive market position.
We believe responsible business practices and technological excellence are the foundations of long-term success in global markets. By investing in innovative technologies, employee development and responsible manufacturing processes, we are strengthening our position as a globally competitive supplier.
Filip Georgievski, Owner of FEDS
Our investment
North Macedonian manufacturing’s embrace of high-tech machinery, equipment and electronics production is boosting the sector’s GDP contribution. As a result, manufacturing is a major contributor to job creation and exports, with manufactured goods accounting for 85% of North Macedonia’s exports to the EU - the country’s largest trade partner.¹ Local companies are increasingly embedded in EU value chains.
But lingering productivity, innovation and gender gaps remain, meaning the sector is failing to reach its full potential. EFSE financing seeks to address these issues.
Since 2016, we have partnered with Sparkasse Bank AD Skopje – a leading North Macedonian financial institution focused on SME financing and sustainable banking. Through our partnership, the bank provides tailored financial products alongside non-financial services, including ESG advisory & capacity building.
Our latest investment was approved in 2024 in the form of a €5 million senior loan facility, with at least 30% allocated to women-owned or women-led businesses. The senior loan facility is financing local microenterprises and SMEs - key to innovation, job creation, and exports, including in the dynamic manufacturing sector.
¹ European Commission, EU Trade in Goods with North Macedonia
Support beyond the investment
In addition to providing financing, our advisory & capacity building services, helped Sparkasse Bank strengthen its ESG strategy and risk management, and provided bespoke ESG advisory services for export-oriented SME clients across a variety of manufacturing sectors (e.g., food, textiles, furniture machinery and equipment).
Specifically, we oversaw ESG gap analysis, portfolio screening and integration of ESG considerations into the bank's operations and risk frameworks, including, the Internal Capital Adequacy Assessment Process (ICAAP). We also supported the bank in working more effectively with SME clients by providing advice on sustainability standards and reporting, digitalization, workforce development and greater inclusion of women, as well as waste management and the circular economy.
These efforts strengthen SMEs’ market position and productivity, improve environmental and social performance, and help them meet growing economic and regulatory challenges
Impact of our investment
- Since the beginning of our partnership in 2016, we have provided a total of EUR 30 million to Sparkasse Bank North Macedonia to support local businesses and households.
- As of 31 December 2025, Sparkasse Bank had allocated EUR 46.3 million in total in EFSE sub-loans to the local economy, including, MSMEs.
- Beyond financing, through our Advisory & Capacity Building services, we have delivered in-depth training to bank staff on sustainability and provided tailored ESG advice to 20 SME clients.