The European Bank for Reconstruction and Development (EBRD) is extending a €5 million loan to ProCredit Bank in Bosnia and Herzegovina, backed by grants from the European Union (EU), under the recently launched Go Digital in Bosnia and Herzegovina programme. The proceeds will be used to help small firms invest in the digitalisation of business processes and to improve productivity, operational efficiency and resilience.

Small and medium-sized enterprises (SMEs) will be able to apply for funds to invest in hardware and software for digital transformation projects in the area of digital communications, information and IT security, digital company management and digital production processes and services. The aim is to boost the digital transformation of SMEs and make them more competitive in EU markets and compliant with the standards required by EU directives.

In addition to loans, SMEs will benefit from grant incentives worth up to 15% of the total loan amount. These incentives are funded by the EU.

The EU has secured grants of €9 million for incentive payments, advisory services and programme technical assistance for the joint EBRD-EU Go Digital in Bosnia and Herzegovina programme, while the EBRD has secured €40 million in loans. The programme will be accompanied by activities from Germany’s international co-operation agency, GIZ, which will work with the government and stakeholders to help build an ecosystem for digitalisation, automation and innovation in Bosnia and Herzegovina, including digital innovation hubs, in line with EU best practices.

The programme contributes directly to the European Commission’s Digital Agenda for the Western Balkans, which aims to support the transition of the private sector and help businesses fully secure the benefits of the digital transformation of the economy.