EBRD Grants €9 Million to ProCredit Bank for Macedonian Business Growth
The European Bank for Reconstruction and Development (EBRD) is committing €9 million to bolster young entrepreneurs and grassroots enterprises in North Macedonia, aiming to foster eco-friendly business practices. This funding will be channelled through ProCredit Bank.
Under the EBRD’s Youth in Business (YiB) initiative, a pioneering €2 million loan is being allocated for the first time in North Macedonia. This loan is dedicated to supporting micro, small, and medium-sized enterprises (MSMEs) led or managed by individuals under 35.
The debut YiB agreement with ProCredit Bank was formalised at an event organised by the EBRD to promote the ecosystem of youth entrepreneurship. The event witnessed participation from various stakeholders, including the National Bank of the Republic of North Macedonia, government officials, commercial banks, youth organisations, start-ups, and business accelerators.
The YiB programme also enjoys the backing of advisory support and guarantees from the governments of Sweden, Italy, and Luxembourg.
Additionally, a €7 million EBRD loan under the Green Finance Facility (GFF) will be directed towards local SMEs. Besides providing essential loans, eligible Macedonian businesses will also benefit from grants (up to 10% of the sub-loan value) to invest in sustainable and energy-efficient technologies.
Technical cooperation funds from the GFF will assist banks and businesses in North Macedonia that are keen to engage in green economy projects. This funding combines loans and grants from the Joint Sustainable Development Goals (SDG) Fund and the North Macedonian government, under the auspices of the United Nations Development Programme (UNDP).
The recently launched YiB initiative across six Western Balkan countries targets dynamic young entrepreneurs with limited access to financial and advisory services. The EBRD aims to offer up to €100 million in the region over the next five years through local banking partners and non-banking institutions as part of its Advice for Small Business (ASB) programme.
The GFF, a collaborative effort between the EBRD, UNDP, and the North Macedonian government, facilitates accessible green financing for SMEs and underserved groups for renewable energy and energy efficiency projects. This initiative plays a critical role in reducing greenhouse gas emissions and mitigating air pollution.
Since joining the EBRD in 1993, the Bank has committed over €2.6 billion across 180 projects in North Macedonia, with nearly half in the private sector. The EBRD’s ongoing focus in the country is to enhance competitiveness, support the green transition, and promote integration into regional and global markets.
