- EIB Global invested €1.2 billion in the Western Balkans in 2023, aiming to mobilise over €6 billion of new investments in the region.
- This will accelerate connectivity, energy transition and SME growth, in line with EU priorities.
- Since 2010, the EIB has invested over €10 billion in the region to help local economies develop sustainably.
EIB Global, the financial arm of the European Investment Bank (EIB) for activities outside the European Union, invested a record-breaking €1.2 billion across the Western Balkans in 2023 (€365 million more than in 2022). The investments went to sustainable and energy transition projects that support the region’s EU accession, economic, climate and connectivity efforts.
“The funds support projects under the Economic and Investment Plan and the Global Gateway initiative, strategic EU instruments to bridge the existing infrastructural gaps and improve living standards. In close cooperation with the European Commission, we are pleased to provide an impressive €475 million in grants under the Western Balkans Investment Framework and the EIB’s Economic Resilience Initiative,” said Kyriacos Kakouris, EIB Vice-President responsible for the region.
The largest share of new funds (58%, €693 million) has been allocated to safer, sustainable transportation, namely railway lines in Serbia (Belgrade-Niš) and North Macedonia (Kriva Palanka-Bulgarian border). The EU bank signed additional funding for the modernisation of urban transport in Sarajevo and a road rehabilitation and safety project in Serbia. €275 million (23% of total financing in 2023) was devoted to supporting small and medium businesses (SMEs) in the Western Balkans. The remaining funds will go to energy, water, healthcare and education projects.
“Thanks to partnerships under Team Europe with our Western Balkans partners, the European Commission and international financial institutions, we could make the most of advisory and financial resources to maximise the benefits for people in the region. We look forward to the rollout of the Commission’s proposed New Growth Plan, which will expedite key reforms promoting greater economic prosperity, advancing convergence with the European Union and strengthening regional initiatives like the Common Regional Market,” Vice-President Kakouris stated.
In addition to financing, the Bank provided technical advisory support to prepare and implement a water distribution project in Tirana, as well as a climate action credit line for SMEs in North Macedonia. Under the EU-financed JASPERS programme, the available technical advisory capacity for the Western Balkans is expected to triple, with a budget of €20 million available for the next six years.
Steering the just green transition in the region
Around 61% of the projects signed in 2023 for the Western Balkans contribute directly to climate action and environmental sustainability — in line with the EIB’s climate goals. The EU bank initiated new projects in renewable energy, energy efficiency and clean energy infrastructure.
At the COP28 climate change conference, EIB Global presented its new approach designed to increase financing and advisory services globally in support of a just transition and just resilience. For its initial just transition activities, the focus will be placed on Bosnia and Herzegovina, Kosovo*, Montenegro, North Macedonia and Serbia. At the conference, the Bank also joined the signatories of a Declaration on the Just Transition Investment Platform for North Macedonia, aiming to help mobilise up to €3 billion to accelerate the country’s deployment of 1.7 GW in renewable energy capacity by 2030.
Affordable and innovative financing for small business
In cooperation with commercial banks and national development institutions like the Development Bank of North Macedonia, EIB Global provided €275 million in the form of affordable credit for SMEs to help them expand and create jobs, while improving their social and climate impact. Some lines of credit also include a “green” component, supporting clean energy and climate action projects in the private sector.
For its innovative impact finance credit line launched in 2020 in the Western Balkan countries, the EU bank received a prestigious Uxolo Award in 2023. The loan fosters youth employment, gender equality and socially inclusive practices, with financial rewards for companies that meet long-term employment targets.
Lastly, the European Investment Fund (EIF), part of the EIB Group, started implementing the WB EDIF Guarantee Facility for SME Resilience, expected to unlock some €700 million for SMEs in the region. To date, the EIB Group has invested over €6 billion in the private sector in the Western Balkans.
Background information
About the EIB and EIB Global
The EIB is the long-term financing institution of the European Union, owned by the Member States. It makes long-term finance available for sound investment to pursue EU policy goals. The EIB supports projects in four priority areas: infrastructure, innovation, climate and environment, and SMEs.
EIB Global is the EIB Group’s specialised arm devoted to increasing the impact of international partnerships and development finance, and is a key partner of Global Gateway. It aims to support €100 billion of investment in Global Gateway projects by the end of 2027 (around a third of the initiative’s overall target). Within Team Europe, EIB Global fosters strong, focused partnerships alongside fellow development finance institutions, and civil society. EIB Global brings the EIB Group closer to local people, companies and institutions through its offices around the world.
About the EIB in the Western Balkans
The EIB is one of the leading international financiers in the Western Balkans. Over the period 2010-2023, the Bank financed projects in the region amounting to €10.2 billion. Since 2010, beyond financing to rebuild and upgrade public infrastructure, the EIB has expanded into many new areas, including healthcare, research and development, education and SMEs. Detailed information on the EIB’s activities in the Western Balkans can be found here.
About the EIF
The EIF is part of the EIB Group. Its core mission is to help Europe’s SMEs access finance. It designs and develops venture and growth capital, guarantees and microfinance instruments that specifically target this market segment. In this role, the EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth and employment. For more information, see https://www.eif.org.
* This designation is without prejudice to positions on status and is in line with UNSCR 1244/1999 and the ICJ Opinion on the Kosovo declaration of independence.