EBRD Initiates a $417 Million Initiative to Support the Western Balkans in Their Digital Transformation

SARAJEVO: On Thursday, the European Bank for Reconstruction and Development initiated a 377 million euro ($417 million) initiative aimed at assisting small and medium-sized enterprises in the Western Balkans to create new technologies. Officials announced during a presentation in Sarajevo, the capital of Bosnia and Herzegovina, that the program, created with backing from the European Union, will integrate loans, grants, and technical aid for investments in green technologies, automation, and digitalisation. The bank states that the digital transformation of the private sector can significantly enhance socioeconomic conditions in the area and bolster connections with the European Union.

"With the launch today of the regional Go Digital in the Western Balkans initiative, the EU reiterates its robust backing for SMEs – the foundation of the region's economies," stated Adebayo Babajide, the deputy head of the EU Delegation to Bosnia. The development bank will provide up to 350 million euros to partner financial institutions in Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia, and Serbia for lending to small and medium-sized enterprises. The European Union will additionally offer 27.6 million euros in grant support and technical help for the initiative, obtained via the Western Balkans Investment Framework. Francis Malige, the Managing Director of Financial Institutions at the EBRD, stated that the initiative would tackle "significant deficiencies in technology uptake."

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It capitalises on the achievements of a current 61.5 million-euro pilot initiative in Bosnia that, since 2023, has assisted nearly 200 local firms and will allow about 750 businesses to obtain support for innovation, digitalisation, and the adoption of green technologies, Babajide stated. "EU grants offer not just technical knowledge and encouragement, but also enhance the accessibility and affordability of financing for SMEs, particularly highlighting women-led SMEs," he mentioned in a statement. Since 2009, the EU has directed 628 million euros via the WBIF to promote private sector development through grants, guarantees, and mixed financing. Since the mid-1990s, the EBRD has put over 20 billion euros into the Western Balkans, with a focus on aiding the private sector and small to medium-sized enterprises (SMEs).

($1 = 0.9031 euros)