The European Bank for Reconstruction and Development (EBRD), with support from the European Union (EU), is providing a €5 million financing package to Union Bank to facilitate access to loans for small and medium-sized enterprises (SMEs) in Albania. This initiative focuses on digitalisation, green investments, and youth entrepreneurship, with additional donor contributions from Italy, Luxembourg, and Sweden.
Strengthening SME Support in Albania
A financing package of €5 million was officially signed today at Europe House in Tirana by Ekaterina Solovova, Head of EBRD Albania, and Flutura Veipi, CEO of Union Bank, in the presence of EU Ambassador Silvio Gonzato.
The funds will be channeled through two targeted programmes:
- Go Digital Programme: Supports SME digitalisation and green investments.
- Youth in Business Programme: Enhances access to finance for SMEs owned or led by young entrepreneurs under 35.
Key Benefits for SMEs
Go Digital Programme
- €3 million allocated to support SME automation, digitalisation, and green technology investments.
- First EBRD loan under this programme in the Western Balkans.
- At least 60% of the funding dedicated to projects aligned with the EBRD’s Green Economy Transition (GET) approach.
- EU-funded investment incentives covering up to 10% of loan amounts.
- Technical cooperation support funded through the Western Balkans Investment Framework (WBIF).
Youth in Business Programme
- €2 million dedicated to SMEs led by entrepreneurs under 35.
- First Loss Risk Cover (FLRC) of up to 10% provided by the EU through the European Fund for Sustainable Development Plus (EFSD+), marking the first EFSD+ project in the Western Balkans.
- Comprehensive advisory services to enhance financial inclusion and business skills.
- Additional support from Sweden (SIDA), Italy (Central European Initiative – CEI), and Luxembourg (EBRD Small Business Impact Fund – SBIF).
Leadership Perspectives
Ekaterina Solovova, Head of EBRD Albania, stated: “We are proud to enhance our support for SMEs in Albania, a key driver of the local economy. These initiatives demonstrate our commitment to youth empowerment and private sector digital transformation.”
EU Ambassador Silvio Gonzato emphasized: “SMEs employ more than 80% of Albania’s workforce. Through this funding, we aim to facilitate financial access, support young entrepreneurs, and promote digital technologies, in line with the EU’s Digital Decade and Youth Strategy.”
Flutura Veipi, CEO of Union Bank, remarked: “We are excited to launch these transformative programmes with EBRD. Building on the success of our previous €1 million Youth in Business investment, we are confident in the potential of young entrepreneurs to drive innovation and economic growth.”
This strategic partnership between EBRD, the EU, and Union Bank marks a significant step in modernizing Albania’s SME sector, fostering sustainability, and empowering the next generation of business leaders. With targeted financial support and advisory services, SMEs are well-positioned to embrace digitalisation, implement green solutions, and enhance their competitiveness in the evolving market landscape.
