Luxembourg, 28 April 2021 The European Commission has invested an additional EUR 40 million into the European Fund for Southeast Europe (EFSE) to help combat the economic effects of the coronavirus pandemic in the Western Balkans and EU Eastern Neighbourhood Region. The capital will be used to bolster the ability of local financial institutions to support micro and small enterprises in overcoming the challenges of the crisis.
Micro and small enterprises play a significant role in income generation and employment creation in these regions. Yet the majority of entrepreneurs in the Western Balkans and EU Eastern Neighbourhood have reported severely negative consequences on their businesses from the coronavirus outbreak, including suspension of operations and drastic declines in revenue. According to a study
To support these efforts, the EU has invested an additional
An impact investment fund established in 2005, the European Fund for Southeast Europe (EFSE) aims to foster economic development and prosperity in Southeast Europe and the Eastern Neighbourhood Region by investing in the success of micro and small enterprises as well as improved living conditions for private households. As access to financial services is key to developing this segment, EFSE focuses on helping local financial sectors strengthen their ability to provide responsible financing for this target group. Alongside its investment activities through local partners, EFSE multiplies its impact through the EFSE Development Facility, which provides technical assistance, training, and other nonfinancial support to entrepreneurs and institutions.
EFSE was initiated 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.
For more information on the European Fund for Southeast Europe, please visit: www.efse.lu
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