Pristina, Kosovo, March 24, 2021—IFC, a member of the World Bank Group, is helping to increase access to finance for farmers and small agribusinesses in Kosovo through a new investment in Agency for Finance in Kosovo (AFK), one of Kosovo`s leading microfinance institutions. The initiative is part of an IFC effort to spur growth and create jobs across the country.
Agriculture accounts for nearly 13 percent of Kosovo's gross domestic product. But the industry is currently underserved by the financial sector, limiting the availability of funding and growth opportunities for small businesses and farmers.
IFC is partnering with the Private Sector Window of the Global Agriculture and Food Security Program (GAFSP) to provide a €1 million loan to AFK. The operation is part of a broader strategy by both institutions to support private sector investment in Kosovo's agricultural sector by increasing access to finance for micro and small enterprises.
"IFC will help us improve and increase our lending to entrepreneurs and farmers in Kosovo," said Vahdet Anadolli, CEO of Agency for Finance in Kosovo. "IFC's loan is also an important recognition of the work AFK has been doing over the past several years."
IFC will support the institution as it ramps up its agriculture finance portfolio, helping to demonstrate to other lenders how improved methodologies and risk assessments can open up new lines of business in the agriculture sector.
"With this investment we reaffirm our strong commitment to increase access to finance, create jobs, and increase economic output," said Ary Naïm, IFC Regional Manager for Central and Southeast Europe. "Supporting small agribusinesses and farmers is of utmost priority for us, especially in the days of crisis caused by COVID-19."
Agency for Finance in Kosovo is a long-standing partner of IFC and the Private Sector Window of GAFSP in providing funding to the agribusiness sector in Southeastern Europe.
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2020, we invested $22 billion in private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org.
About the GAFSP
The Global Agriculture and Food Security Program (GAFSP) is a global effort that pools donor resources to fund programs focused on increasing agricultural productivity as a way to reduce poverty and increase food and nutrition security. The Private Sector Window, managed by IFC, and supported by the governments of Australia, Canada, Japan, the Netherlands, the United Kingdom and the United States, provides long- and short-term loans, credit guarantees, equity, and technical assistance to private sector companies and financial intermediaries. It links smallholder farmers to markets by improving their access to finance, technology, expertise, and inputs.
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About Agency for Finance in Kosovo (AFK)
AFK is the fourth-largest microfinance institution in Kosovo with a loan portfolio of over €36 million and serving more than 48,000 clients, with a strong agribusiness focus. AFK was established as a non-governmental organization in 1999 by Mercy Corps to provide financial services to micro and small enterprises in Kosovo. Mercy Corps is a non-governmental organization headquartered in the United States and works in over 40 countries facilitating disaster recovery, building up communities, and helping to alleviate poverty. For more information about AFK, visit https://afkonline.org/
