European Bank For Reconstruction And Development Boosts MSME Growth In Kosovo With €7 Million Financing For KEP Trust

The European Bank for Reconstruction and Development (EBRD) is increasing financial support for micro, small, and medium-sized enterprises (MSMEs) in Kosovo by providing a funding package of up to €7 million to KEP Trust, the country’s largest microfinance institution. The package includes a senior loan of up to €5 million, which will be used to provide financing to local privately owned small businesses across Kosovo. A significant focus of this support is on micro-enterprises, which often face the greatest challenges in accessing formal credit.

Along with this, a separate loan of up to €2 million is being provided under the Western Balkans Women in Business programme, specifically aimed at supporting women-led MSMEs. The MSME-focused loan will help improve access to finance for small businesses, encouraging entrepreneurship and strengthening competitiveness in the local market. At least 35% of the total funds will be directed towards projects aligned with the EBRD’s Green Economy Transition approach. This means the financing will also support environmentally sustainable investments, helping businesses adopt greener and more resource-efficient practices.

The Women in Business (WiB) loan is designed to support women entrepreneurs by improving their access to finance as well as business knowledge and support services. This is the second such loan provided to KEP Trust under the programme, highlighting the continued focus on promoting gender inclusion in business across the Western Balkans.

The initiative is supported by technical assistance funded by the European Union through the European Fund for Sustainable Development Plus (EFSD+). This assistance will help build the capacity of both KEP Trust and eligible women-led businesses. Additionally, EFSD+ will provide first-loss risk cover of 10% of the loan amount, which reduces lending risks and encourages more financial support for women entrepreneurs.

According to Sergiy Maslichenko, Head of Kosovo at the EBRD, this partnership with KEP Trust strengthens access to finance for MSMEs, which form a crucial part of Kosovo’s economy. He emphasized that supporting women-led businesses and green investments helps entrepreneurial companies grow, create jobs, and contribute to a more inclusive and sustainable economic environment.

KEP Trust’s CEO, Adrian Alo, also highlighted that the new support from the EBRD will enhance the institution’s ability to serve micro and small businesses across the country. He noted that the additional funding will allow greater expansion of credit facilities for entrepreneurs, increased support for women-led enterprises, and stronger investment in environmentally responsible business practices.

Founded in 1999, KEP Trust has played an important role in improving financial inclusion in Kosovo, particularly for underserved groups such as micro-enterprises and women entrepreneurs who often struggle to access traditional banking services. To date, the EBRD has invested approximately €909 million in Kosovo through 150 projects, with most of its funding directed towards the private sector. The bank continues to focus on improving private-sector competitiveness, supporting the transition to a green economy, and promoting inclusive economic growth across the country.