“Go Digital in the Western Balkans” to drive innovation and growth in the private sector

• Investments in digitalisation to drive innovation and growth in the region
• Partner financial institutions to on-lend funds to SMEs in the Western Balkans region
• SMEs to also benefit from EU-funded grant incentives 

Small and medium-sized enterprises (SMEs) across the Western Balkans region will benefit from new financing opportunities made available through the Go Digital in the Western Balkans programme, which combines loans, grants and technical assistance for investments in digitalisation, automation and green technologies.

The programme was developed by the European Bank for Reconstruction and Development (EBRD) with the support of the European Union (EU). It aims to drive innovation, competitiveness and sustainable growth in the Western Balkans’ private sector.

The EBRD will be extending up to €350 million in loans to partner financial institutions in the Western Balkans region who will then on-lend the funds to SMEs. Businesses will also benefit from grant incentives equal to 10 per cent of the loan amount, funded by the EU. In total, the EU is providing €27.6 million of grant incentives and technical assistance for the programme, secured through the Western Balkans Investment Framework (WBIF).

The programme builds on the successful “Go Digital in Bosnia and Herzegovina” pilot programme which supported investments of nearly 200 local companies. The event was attended by representatives from partner financial institutions and business sector from the region and marks a major step in increasing private sector resilience and competitiveness across the Western Balkans.

Francis Malige, Managing Director of Financial Institutions, EBRD, said: “The Go Digital in the Western Balkans programme aims to address technology gaps and significantly advance digitalisation among SMEs, empowering them to become more innovative, productive and competitive on a global scale. Together with our partner financial institutions and our donors, we are achieving systemic impact across the region by enhancing innovation in SMEs to build competitive and robust economies for the future.”

Adebayo Babajide, Deputy Head of the EU Delegation to Bosnia and Herzegovina said: “With today’s launch of the regional ‘Go Digital in the Western Balkans’ initiative, the European Union reaffirms its strong support for small and medium-sized enterprises – the backbone of the region’s economies. Through this programme, around 750 businesses will receive vital support to innovate, digitalise, and embrace green technologies. In Bosnia and Herzegovina, the initiative builds on the success of our pilot project worth €11.5 million, which has already helped over 200 companies enhance their productivity and competitiveness. EU grants not only provide technical expertise and incentives, but also make financing more accessible and affordable for SMEs. Combined with the ongoing reforms to improve the business environment, this programme paves the way for greater economic growth, resilience, and deeper integration of the region into the European single market.”

Background information

SMEs account for 99 per cent of all businesses in the Western Balkans and play a key role in meeting digital and green transition goals, highlighting the need for sustainable business practices. Automation and digitalisation drive productivity, with businesses adopting these technologies seeing an increase in efficiency of up to 20 per cent.

Yet many SMEs in the Western Balkans struggle with digital adoption and transformation; the basic level of digital intensity is 20 percentage points lower than that of their EU peers, only a fifth of SMEs sell online and less than 10 per cent have used more innovative digital processes, such as cloud computing, big data and AI.

With SMEs struggling to secure adequate funding for digitalisation, there remains significant untapped potential for businesses to leverage investments in information and communications technology to streamline operations, automate processes, increase efficiency, drive sales, improve customer experience and increase market access – all drivers of competitiveness. This programme seeks to address these gaps by increasing both digital awareness and access to finance.

SMEs will be able to apply for financing for a wide range of technologies and investments, from adopting automated and robotic industrial processes to using complex digital decision-making, data collection and analysis tools, which also contribute to decarbonisation and resource efficiency.

The credit line will be available in more than 10 regional financial institutions – banks and leasing companies – that the EBRD partners with.

The “Go Digital in the Western Balkans” programme recognizes that a strong private sector is key to improving socio-economic conditions in the region and strengthening ties with the European Union. Since 2009, the EU has channelled €628 million through the WBIF to support private sector growth in the Western Balkans, through grants, guarantees and blended finance, helping to build more innovative and business-friendly ecosystems.

The EBRD is a key institutional investor in the Western Balkans with close to €20 billion invested to date since it started operating in the region in the mid-1990s.

Accelerating the digital transition is one of the EBRD’s strategic priorities. You can find out more about the EBRD’s digital offering here: https://www.ebrd.com/home/what-we-do/focus-areas/digitalisation.html.