EU and EBRD launch €377 million SME digitalisation programme in Western Balkans
Small and medium-sized businesses (SMEs) across the Western Balkans region will benefit from new financing opportunities made available through the Go Digital in the Western Balkans programme, which combines loans, grants and technical assistance for investments in digitalisation, automation and green technologies.
The programme which was developed by the European Bank for Reconstruction and Development (EBRD) with support of the European Union (EU) aims to drive innovation, competitiveness, and sustainable growth in the Western Balkans’ private sector.
As part of the programme, the EBRD will be extending up to €350 million to partner financial institutions in the Western Balkans region for on-lending to SMEs. Borrowers will also benefit from grant incentives equal to 10 per cent of the loan amount, funded by the EU. In total, the EU is providing €27.6 million worth grant incentives and technical assistance for the programme, secured through the Western Balkans Investment Framework (WBIF).
The programme builds on the successful “Go Digital in Bosnia and Herzegovina” pilot programme which supported investments of nearly 200 local companies. The event was attended by representatives from partner financial institutions and business sector from the region and marks a major step in increasing private sector resilience and competitiveness across the Western Balkans.
Francis Malige, Managing Director of Financial Institutions, EBRD, said: “Go Digital in the Western Balkans programme aims to significantly advance digitalisation among SMEs, empowering them to become more innovative, productive, and competitive on a global scale. The programme will address the substantial gaps in technology adoption by SMEs across the region. Together with our partner financial institutions and our donors, we are achieving a systemic impact in the region by enhancing innovation in SME sector to build competitive and robust economies for the future”.
Adebayo Babajide, Deputy Head of the EU Delegation to Bosnia and Herzegovina said: "With today’s launch of the regional ‘Go Digital in the Western Balkans’ initiative, the European Union reaffirms its strong support for small and medium-sized enterprises – the backbone of the region’s economies. Through this programme, around 750 businesses will receive vital support to innovate, digitalise, and embrace green technologies. In Bosnia and Herzegovina, the initiative builds on the success of our pilot project worth €11.5 million, which has already helped over 200 companies enhance their productivity and competitiveness. EU grants not only provide technical expertise and incentives, but also make financing more accessible and affordable for SMEs, with a special emphasis on women-led SMEs. Combined with the ongoing reforms to improve the business environment, this programme paves the way for greater economic growth, resilience, and deeper integration of the region into the European single market."
The “Go Digital in the Western Balkans” programme recognizes that a strong private sector is key to improving socio-economic conditions in the region and strengthening ties with the European Union. Since 2009, the EU has channelled €628 million through the WBIF to support private sector growth in the Western Balkans, through grants, guarantees and blended finance, helping to build more innovative and business-friendly ecosystems.
The EBRD is a key institutional investor in the Western Balkans region with over €20 billion invested to date since it started operating in the region in mid 1990s. Private sector, and particularly small and medium-sized enterprises, remain among key areas of investment for the bank. Boosting their innovation and digitalisation, green transition and inclusive growth are the Bank’s strategic priorities.
About the programme and sector
SMEs account for 99 per cent of all businesses in the Western Balkans and play a key role in meeting digital and green transition goals, highlighting the need for sustainable business practices. Automation and digitalisation drive productivity, with businesses adopting these technologies seeing up to a 20 percent increase in efficiency. Yet, many SMEs in the Western Balkans struggle with digital adoption and transformation: the basic levels of digital intensity is 20 percentage points lower compared to their EU peers, only a fifth of SMEs sell online and less than 10 percent have used more innovative digital solutions such as cloud computing, big data and AI.
With SMEs struggling to secure adequate funding for digitalisation, there remains significant untapped potential for businesses to leverage ICT investments to streamline operations, automate processes, increase efficiency, drive sales, improve customer experience and increase market access, all drivers of competitiveness. This programme seeks to address these gaps by enhancing both digital awareness and access to finance.
SMEs will be able to apply for financing for a wide range of technologies and investment solutions, from the simple adoption of automated and robotic industrial solutions to complex digital decision-making tools and data collection and analysis tools, thus also contributing to decarbonization and resource efficiency.
The credit line will be available in more than 10 financial institutions that the EBRD will partner with, including both banks and leasing companies in the region.