IFC backs Eastern Europe MSMEs with 50 mln euro

The EFSE fund, advised by impact asset manager Finance in Motion, targets 15 countries: Albania, Armenia, Azerbaijan, Bosnia and Herzegovina, Bulgaria, Croatia, Georgia, Kosovo, Moldova, Montenegro, North Macedonia, Romania, Serbia, Turkey, and Ukraine, the IFC said in a press release.

IFC’s investment will support the fund’s on-lending to MSMEs in these countries, including 40% earmarked for women-owned MSMEs (WMSMEs), to accelerate growth and financial inclusion and strengthen job security amid a challenging economic environment.

MSMEs are key drivers of growth, innovation, and job creation in EFSE’s countries of operations, accounting for 45% of gross domestic product (GDP) and 55% of jobs, IFC said.

IFC, the private investment arm of the World Bank, focuses on supporting the private sector in emerging markets.

EFSE was launched in 2005 by German development bank KfW with the financial support of the German Federal Ministry for Economic Cooperation and Development (BMZ) and the European Commission. EFSE draws its capital from donor agencies, international financial institutions, and private institutional investors.

($ = 0.918 euro)