On 29 January 2026, the European Commission and KfW, the German development bank, signed a €135 million guarantee agreement to expand access to alternative finance for Micro, Small and Medium-Sized Enterprises (MSMEs) across the Western Balkans, Eastern Neighbourhood, North Africa, the Middle East, and Türkiye.
Backed by the European Fund for Sustainable Development Plus (EFSD+), the initiative targets businesses that face significant barriers to traditional financing. This includes innovative start-ups, women-led enterprises, and companies run by individuals or groups exposed to discrimination.
The support will be delivered through the Scaling Alternative Finance for Entrepreneurs (SAFE) fund, which provides guarantees to alternative financial intermediaries such as crowdfunding platforms, microfinance institutions, leasing companies, and venture capital funds. By reducing financial risk for these intermediaries, the programme aims to unlock greater investment, foster innovation, and promote inclusive economic growth.
Established in 2021, EFSD+ is a central instrument of the EU’s Global Gateway strategy and provides grants and guarantees to support sustainable investments in partner countries, with €39.8 billion in global guarantee capacity for 2021–2027.
The partners in North Macedonia that will offer these financing possibilities will be determined in the coming months. In similar cases, financing has been provided through banks that offer funding for MSMEs.
More information is available at the following link.
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