Western Balkans Enterprise Development
Innovation Facility (WB EDIF)

WB EDIF is an EU funded initiative which aims at increasing the financial resources made available to SMEs based in the Western Balkans, as well as support services for private sector development, to support socio-economic development and EU accession across the Region.

WB EDIF was launched in December 2012 by the European Commission, the EIF, the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB), acting as co-lead international financial institutions.

The EUR 145 million of initial capital pulled together under WB EDIF may translate into about EUR 300 million of finance benefitting SMEs based in the Western Balkan countries.

What is WB EDIF’s geographical reach?

WB EDIF targets SMEs based in Albania, Bosnia and Herzegovina, Kosovo*, North Macedonia, Montenegro and Serbia.

How does WB EDIF work?

WB EDIF does not support entrepreneurs directly but provides funding to local financial intermediaries via debt and equity products as well as support services  - e.g. venture capital funds, guarantee schemes including mutual guarantee organisations, micro-finance institutions and any other financial institution providing finance to SMEs established and operating in one or several of the Western Balkan countries mentioned above.

WB EDIF, which is coordinated by the European Investment Fund (EIF), consists of four pillars:

WB EDIF Guarantee Facility (WB EDIF GF)
Launched in 2013, the WB EDIF guarantee Facility instrument has undergone two rounds of financing ( GF I and GF II) and was greeted with high demand from the market, leading to the full allocation of the resources. The WB EDIF Guarantee Facility provides guarantees to eligible Financial Intermediaries established and operating in one or several Western Balkan countries to encourage them to build up new portfolios of SME transactions and thereby improving access to finance to SMEs in the Western Balkans countries.

Financial intermediaries were selected on the basis of a Call for Expression of Interest process, which closed on 30.06.2014.
Financial intermediaries under the GF II were selected on the basis of a Call for Expression of interest process which closed on 27.02.2017. Although the original closing date was set for 31 December 2017, the available budgetary resources have been exhausted and therefore the call has been closed accordingly.

WB EDIF Guarantee Facility – Serbia Window (WB EDIF GF Serbia)
Following the success of the initial implementation of the WB EDIF GF and WB EDIF GF II, a dedicated window is now open focusing on SMEs in Serbia. In line with the initial two facilities, GF Serbia will provide guarantees to eligible Financial Intermediaries established and operating in Serbia to encourage them to build up new portfolios of SME transactions and thereby improving access to finance to SMEs in Serbia.

Financial intermediaries under the WB EDIF GF Serbia were selected on the basis of a Call for Expression of interest process which closed on 15.04.2019. Although the original closing date was set for 31 December 2019, the available budgetary resources have been exhausted and therefore the call has been closed accordingly.

WB EDIF Guarantee Facility – Youth Employment (WB EDIF GF Youth)
Building on the successful results of WB EDIF GF and WB EDIF GF II and in parallel with a currently ongoing facility aimed at Serbian SMEs only, a dedicated Youth Employment window is now open to improve access to finance for SMEs in all Western Balkan Beneficiary Economies with a view to support youth employment in the region. WB EDIF GF Youth is a window of the Western Balkans EDIF Guarantee Facility, under which EIF will provide first-loss capped guarantees to selected Financial Intermediaries that build up a portfolio of debt instruments to SMEs established and operational in the Western Balkans region.

WB EDIF Guarantee Facility – Guarantee 4 SME Resilience

Building on the successful results of WB EDIF GF and WB EDIF GF II, and to support the resilience of SMEs in the Western Balkans following the COVID 19 crisis and the current energy crisis, the WB EDIF Guarantee4 SME Resilience (“WB EDIF GF4Resilience”) aims to respond to the economic distress with a view of supporting access to finance for SMEs in all Western Balkan Beneficiary Economies.

1. Enterprise Innovation Fund (ENIF)
   ENIF supports innovative SMEs in the Western Balkans in their early and expansion stage by providing equity finance through local funds management companies.
   
   Eligible Fund Managers were selected on the basis of a Call of Expression of Interest process which closed on 14.06.2013. South Central Ventures was awarded with the role of ENIF Fund Manager as a result of this process.
   
   
2. Enterprise Expansion Fund (ENEF)
   Managed and advised by EBRD, ENEF supports the expansion of SMEs with a high-growth potential established in the Western Balkans.
3. Support Services Facility
   Governments of the Western Balkan countries can obtain technical assistance under WB EDIF to implement policy reforms in order to create a favourable regulatory environment to benefit innovative and high-growth SMEs in the region.

For further information about WB EDIF, please visit www.wbedif.eu