The European Bank for Reconstruction and Development (EBRD), in collaboration with Union Bank, the European Union (EU), and other donors, is enhancing support for small and medium-sized enterprises (SMEs) in Albania. The initiative includes a €5 million loan aimed at driving digital transformation and empowering young entrepreneurs, divided into two credit lines.
A €3 million loan, the first of its kind under the EU-supported EBRD Go Digital programme in the Western Balkans, will be allocated to Albanian SMEs to foster automation, digitalisation, and green technology investments. With at least 60% of the funds dedicated to projects aligned with the EBRD’s Green Economy Transition (GET) approach, the initiative underscores the Bank’s commitment to modernising Albania’s private sector and promoting sustainability.
The programme also provides a technical cooperation package, including project development, training, and 10% investment incentives for automation and digitalisation, funded by the EU through the Western Balkans Investment Framework (WBIF).
The remaining €2 million will support the EBRD’s flagship Youth in Business (YiB) programme, targeting SMEs owned or led by entrepreneurs under 35. This underserved segment in Albania will benefit from tailored financial products and advisory services to strengthen their business capabilities.
Additionally, First Loss Risk Cover (FLRC) of up to 10% of the loan amount, backed by the EU’s European Fund for Sustainable Development Plus (EFSD+), will assist Union Bank in expanding access to finance. Support for the YiB programme also comes from Sweden’s SIDA, Italy’s CEI, and Luxembourg’s Small Business Impact Fund (SBIF).
Ekaterina Solovova, EBRD’s Head of Albania, emphasized the importance of the initiative, stating, “We are proud to strengthen support for small businesses, a cornerstone of the local economy. This financing reflects our strategy to foster youth empowerment and digital transformation in Albania.”
Silvio Gonzato, Head of the EU Delegation in Albania, highlighted the impact on Albania’s workforce: “SMEs employ over 80% of Albania’s workforce. Supporting young entrepreneurs and promoting digital technologies aligns with the EU’s Digital Decade and Youth Strategy, as well as the EU Growth Plan for the Western Balkans.”
Flutura Veipi, CEO of Union Bank, added, “These programmes mark a significant step forward in fostering innovation, economic growth, and sustainability. Our previous YiB investments have shown the incredible potential of Albania’s young entrepreneurs.”
Union Bank, a commercial bank focusing on SME lending, has been a long-standing EBRD partner. To date, the EBRD has invested over €2.2 billion in Albania across 159 projects, showcasing its commitment to economic development and sustainability in the country.
This latest initiative reaffirms the Bank’s role in shaping Albania’s economic future, supporting digitalisation, green investments, and the next generation of business leaders.