EBRD and EU support the digitalisation of SMEs in Kosovo

Loan of up to €5 million for Banka për Biznes to help modernise and green the private sector.

• EBRD lending up to €5 million to Banka për Biznes under its Go Digital in the Western Balkans programme
• Financing will support digitalisation of small businesses, green transition and inclusivity
• EU providing investment incentives and technical assistance through WBIF

The European Bank for Reconstruction and Development (EBRD) is supporting small businesses in Kosovo in partnership with Banka për Biznes and the European Union (EU).

The Bank is lending up to €5 million to Banka për Biznes for on-lending in Kosovo, seeking to enhance the automation and digitalisation of small and medium-sized enterprises (SMEs) in the country, accelerate the private sector’s transition to a green economy and support women-led businesses.

This financing – the first provided in Kosovo under the EBRD’s Go Digital in the Western Balkans programme – will be supported by investment incentives totalling 10 per cent of sub-loans, which will encourage sub-borrowers to implement automation and digitalisation investments. It will also be accompanied by a comprehensive technical assistance package supporting partner banks and sub-borrowers. The investment incentives and the technical assistance are both being funded by the EU through the Western Balkans Investment Framework (WBIF).

The financing will help SMEs to modernise through targeted investments and raise awareness of automation and digitalisation technologies. By improving access to finance, it will help small businesses to adopt EU standards and become more competitive outside their domestic markets. It will also support green investments, with at least 60 per cent of the financing going to projects that are in line with the Bank’s Green Economy Transition (GET) approach.

The loan agreement was signed on the sidelines of the programme’s regional launch event in Sarajevo, Bosnia and Herzegovina, by Francis Malige, the EBRD’s Managing Director for Financial Institutions, and Mimoza Godanci-Aliu, the CEO of Banka për Biznes.

Mr Malige said: “We are delighted to be strengthening our collaboration with Banka për Biznes to accelerate the modernisation of the private sector in Kosovo. This agreement underlines our commitment to enhancing the competitiveness and resilience of small businesses across the country. Digitalising SMEs is not only vital for alignment with EU standards, but also a critical step towards fostering a more sustainable and forward-looking private sector.”

Ms Godanci-Aliu added: “At Banka për Biznes, we believe it is essential for businesses in Kosovo to be prepared for a future that is increasingly centred on automation and digitalisation. Our partnership with the EBRD and the EU is a significant step towards modernising the economy, promoting sustainability and supporting women-led enterprises. Our dedication to helping businesses navigate this transition extends beyond the financial sphere, offering a comprehensive suite of non-financial services. From technical assistance to strategic guidance, we aim to equip our clients with the tools they need to thrive in a competitive, future-oriented landscape.”

Johannes Stenbæk Madsen, Head of Cooperation at the EU Office in Kosovo, said: “The European Union is proud to support the Go Digital programme, a vital initiative that empowers businesses to embrace digital transformation. By partnering with the EBRD, we are encouraging innovation, strengthening economic resilience and equipping companies with the tools required to thrive in the digital economy. By investing in digitalisation, we are not only enabling businesses to grow and compete in a global market, but also contributing to the broader goals of a sustainable and inclusive future.”

Banka për Biznes was established in 2001 and specialises in financial products for SMEs. It is a longstanding partner of the Bank, having implemented several EBRD credit lines in support of small businesses in Kosovo.

To date, the EBRD has invested more than €775 million in Kosovo through 120 projects.