EFSE engages with ProCredit Bank AD Skopje and ProCredit SH.A. Tirana to develop sustainable agriculture and animal welfare lending to MSMEs in North Macedonia and Albania

Luxembourg and Skopje, 22 July 2024 – The European Fund for Southeast Europe (EFSE) announces its commitment to provide EUR 10 million to ProCredit Bank AD Skopje and EUR 10 million to ProCredit SH.A. Tirana through innovative credit facilities that renew the Fund's engagement with the ProCredit group, emphasizing the development of micro, small and medium enterprises (MSMEs) in Albania and North Macedonia. This initiative, supported by the European Union, underscores EFSE's dedication to fostering economic growth and stability in the region, particularly by enhancing access to financing for local businesses.

A special feature of the facilities is that ProCredit Banks will work diligently to ensure that at least 30% is earmarked to support sustainable agriculture and animal welfare measures, an area where ProCredit group has shown a strong focus. EFSE is proud to be complementing the loans with advisory and capacity building which will support the banks in defining eligibility criteria and developing dedicated loan products to promote the adoption of sustainable agricultural practices among local farmers, such as efficient irrigation, organic farming, and sustainable animal husbandry, among others.

The facilities are aimed at promoting the Fund’s sustainability agenda by supporting ProCredit Banks’ strong focus on environmental, social, and governance (ESG) standards. Both ProCredit Banks strive to raise awareness and build ESG capacities among its clients, particularly innovative, export-oriented companies with a good awareness of environmental protection.

EFSE Board Chairperson Andrea Hagmann commented, “We welcome this opportunity to reaffirm our relationship with the ProCredit group, who’s strong focus on sustainability resonates with the Fund’s work to promote awareness and capacity-building in ESG areas. We are optimistic that these partnerships will significantly contribute to advancing sustainable growth and fostering innovation in rural areas.”

Mr. Mirsad Haliti, CEO of ProCredit Bank Albania, emphasized “We are excited to collaborate with EFSE in fostering the sustainable development of MSMEs in Albania. This partnership underscores our dedication to supporting innovative, production and agriculture companies that prioritize environmental and social governance standards. By enhancing access to tailored financial solutions, we aim to empower local businesses to thrive sustainably, contributing to the broader economic growth and stability of our region.”

“ProCredit Bank’s strong focus on supporting economic growth, which is environmentally and socially sustainable at the same time, has been reflected in our strategy to support the agricultural sector in the country as well.  Having in mind the sector’s need to pursue adaptation to climate change and the need to enhance the access to finance for farmers, it is critical for us to further develop and promote our sustainable agriculture framework which will help to increase awareness, ability, and financing for sustainable agriculture among our clients and the sector overall. We have received big support from our partner EFSE for achieving this goal, and together we have started a project to promote the sustainability strategy and to contribute to our client’s transition to more sustainable practices in the agricultural sector,” said Ms. Dobrinka Stefanova Gjorgieva, Head of Environmental Management Unit at ProCredit Bank AD Skopje.

About EFSE

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. 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. Finance in Motion GmbH, Germany, serves as EFSE’s advisor and Hauck & Aufhäuser Fund Services S.A., Luxembourg, acts as manager. For more information on the European Fund for Southeast Europe, please visit: www.efse.lu

For more information on Finance in Motion, please visit: www.finance-in-motion.com

About ProCredit Bank AD Skopje

ProCredit Bank AD Skopje is a member of ProCredit Group, a financial group headquartered in Germany and consisting of 13 banks operating in developing countries of Eastern Europe and Latin America.  For more than two decades, the bank has been setting standards for responsible banking on the Macedonian market. ProCredit has a clear vision for achieving a positive impact and development of the Macedonian economy, focused on supporting small and medium-sized enterprises, private individuals, digitalization, and innovation. It stands out on the local market due to the German "Hausbank" principle of work, which is based on transparency in communication, support, and development of long-term partnership with clients, both legal entities and private individuals.

About ProCredit Bank Albania

ProCredit Bank is part of the ProCredit Group. 100% of its shares are owned by ProCredit Holding, based in Frankfurt am Main, Germany. ProCredit Bank Albania strives to be the partner bank for small and medium-sized enterprises, as well as for private customers who have the capacity to save and prefer to bank through digital channels. ProCredit Bank Albania is focused on developing its digital services infrastructure to provide modern banking services that meet customers' needs as efficiently as possible. It is rated "BB" by the international agency Fitch Ratings and is supervised by German authorities, the Bundesbank and BaFin, which ensure the bank's reliability and sustainability.

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