Capital for Europe’s Neighbours:

Mostar, 16 September 2026 – The next phase of impact investing goes beyond classic development goals: this became evident today at the 20th anniversary of the European Fund for Southeast Europe (EFSE) in Mostar. Further financing agreements were signed, once again mobilising private capital for Europe’s neighbouring regions.

Since its founding, the fund – co-managed by Finance in Motion – has demonstrated that development finance can deliver both impact and financial sustainability, combining public-sector commitment with private-sector capital. Through its network of partner financial institutions, EFSE improves access to finance for micro, small, and medium-sized enterprises (MSMEs) and households. “This strengthens local financial sectors and the region’s economic stability,” said Sylvia Wisniwski, CEO of Finance in Motion. EFSE was established as a public-private partnership with KfW Development Bank, with support from the European Commission and the German Federal Ministry for Economic Cooperation and Development (BMZ).

The new phase of impact investing increasingly focuses on mobilizing greater volumes of private and institutional capital. “Risk-sharing mechanisms have shown how development finance can act as a bridge,” said Wisniwski. “They help pension funds and other institutional investors gain access to opportunities in the EU’s neighbouring regions.” These opportunities – which also support portfolio diversification – often lie outside the traditional investment universe. European investors are increasingly looking for investments beyond familiar domestic markets. Well-structured fund vehicles can therefore channel long-term capital into economies that are geographically close and economically closely linked to Europe – economies that are becoming increasingly important for Europe’s future growth.

Linda Broekhuizen, Chairperson of EFSE, said: “For 20 years, EFSE has demonstrated what is possible when public and private partners work together with a shared purpose. What began as a bold idea has grown into a resilient platform that has helped unlock access to finance for local businesses, reinforced local livelihoods, and strengthened financial sectors across Southeast Europe and the Caucasus. Our goal remains clear: to channel investment where it is needed most, while creating opportunities for local businesses and contributing to sustainable development across the region.” 

Volker Oel, Director-General Eastern Europe at BMZ, said: “EFSE represents a best-practice model for how a well-designed public-private partnership can contribute to peace, economic resilience and social inclusion.”

Jasmina Selimović, Governor of the Central Bank of Bosnia and Herzegovina, said: “With the anniversary in Mostar, we reaffirmed our shared commitment to two decades of partnership and economic opportunity across the region.”