IFC and EU Partner to Spur Economic Integration in the Western Balkans, Supporting a Green, Energy and Digital Transition

Brussels, Belgium, December 20, 2022—IFC and the European Union (EU) signed the first of a series of projects designed to tackle key development issues identified under the EU-funded Economic and Investment Plan (EIP) for the Western Balkans 2021-2027, and to be implemented through the Western Balkans Investment Framework (WBIF). These projects will focus on energy transition, climate change, and a stronger private sector. The goal is to spur regional economic integration, support a green, energy and digital transition, as well as necessary reforms to move forward on the EU accession path.

The first project under this partnership aims to help advance decarbonization and improve resource efficiency of industrial parks across the region. Preliminary diagnostic will be followed by targeted implementation of four pilot projects in industrial parks across Serbia, Bosnia and Herzegovina, North Macedonia, Montenegro, Kosovo, and Albania.

IFC, together with the World Bank, is the latest international financial institution to join WBIF, creating a partnership of critical importance to support private sector activity in the region, addressing urgent development issues, creating jobs, and ensuring long-term sustainability.

Katarína Mathernová, Deputy Director-General in the European Commission's Directorate-General Neighbourhood and Enlargement Negotiations and chair of the WBIF, welcomed the signature of the first cooperation agreement with IFC through WBIF. She said: "Today's signature marks an important achievement. It formally consolidates the partnership of the European Commission and IFC in the Western Balkans through WBIF and creates opportunities for public and private investments to facilitate the energy transition of highly contaminating business parks."   

Other projects in the pipeline aim to mobilize guaranteed financial instruments for creditworthy agribusiness clients, enabling much-needed sector modernization, digital transformation and help improve climate related capacity of financial intermediaries, allowing them to expand their outreach to micro, small, and medium enterprises (MSMEs).

"We are proud of our strong partnership with the EU in the Western Balkans. This is a region where we see tremendous potential to accelerate economic growth and improve people's lives by helping crowd in the private sector," said Alfonso Garcia Mora, IFC's Vice President for Europe, Latin America and the Caribbean. "Our projects under this partnership will help create investment opportunities in the region, boost competitiveness and increase resilience to the impacts of climate change."

The WBIF provides blended finance for the preparation and implementation of priority infrastructure projects including resources from the European Commission's Instrument for Pre-Accession Assistance (IPA) and 20 bilateral donors, loans from international financial institutions, and national finance.