Microfinance project impact: supporting small businesses across Albania
The microfinance project, supported by the European Fund for Southeast Europe (EFSE), the Dutch Ministry of Foreign Affairs, and Rabo Partnerships, has had a significant impact on rural businesses in Albania over the past seven years. With a focus on digitization and sustainable financial solutions, this initiative has helped transform microfinance into a key provider of rural and inclusive financial services in the country. The collaboration has strengthened the Albanian microfinance institutions, enabling it to effectively support small businesses, especially those in agriculture.
Why does it matter: This project is crucial because it addresses one of the biggest challenges faced by rural businesses: access to finance. In many cases, traditional banks are hesitant to provide loans to small enterprises, particularly in rural areas where risks are perceived to be higher. By focusing on these underserved sectors, the microfinance project is enabling small businesses to grow and create jobs. It is also playing a key role in modernizing the financial sector and making it more accessible to those who need it most.
The project has resulted in substantial investments in Albania’s rural areas, with around €200 million in financing provided, half of which has supported agriculture and livestock businesses. Digitalization has been a cornerstone of the initiative, with the microfinance institution introducing online platforms and modern financial products to meet the needs of rural entrepreneurs. The number of members has grown significantly, reaching nearly 94,000, as the institution continues to offer a wide range of financial services, including loans, savings accounts, and payment services.
Rabo Partnerships has played a pivotal role, providing expertise in food and agriculture financing. The success of the project has been widely acknowledged, with partners emphasizing the importance of long-term strategies to build a sustainable agricultural ecosystem in Albania. The Dutch ambassador to Albania also highlighted the project’s role in empowering farmers and small businesses, further strengthening the country’s rural economy.
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