Impact contribution
>2.2 million indirect jobs supported in MSMEs receiving finance through partner institutions
Impact strategy
Social impact
Investment strategy
Private debt
Assets under management
EUR 1,305.9 mn
Website
www.efse.lu
Initiated in
2005
Initiated by
KfW Development Bank with risk capital from the German Federal Ministry for Economic Cooperation and Development (BMZ) and the European Commission
Target regions
Southeast Europe, Eastern Europe, and the Caucasus
SFDR classification
Article 9 fund
The European Fund for Southeast Europe (EFSE) fills the financing gap and provides non-financial support to micro, small and medium enterprises (MSMEs) and private households in Southeast Europe and selected countries in Eastern Europe and the Caucasus.
EFSE was initiated in 2005 by KfW Development Bank. Some experts who participated in launching the fund, later established Finance in Motion. EFSE was developed with the support of donors and international financial institutions, such as the European Commission and the German Federal Ministry for Economic Cooperation and Development (BMZ). It has since grown into one of the largest development finance vehicles worldwide, with over EUR 1 billion assets under management. Finance in Motion serves as the fund’s advisor.
Fills the funding gap for micro, small and medium enterprises
Fostering economic development and prosperity since 2005
Finance in Motion is the advisor to EFSE, which helps create conditions for MSMEs to thrive by building up and investing in local financial infrastructure. The fund creates impact by channeling financing via local financial institutions to MSMEs and facilitating knowledge-sharing through its Development Facility. EFSE’s Entrepreneurship Academy also fosters entrepreneurship and innovation through its on-the-ground training and mentorship activities. In this way, the fund aims to achieve impact on both an individual and systemic level.
Our financing efforts work towards the following Sustainable Development Goals (SDGs): No Poverty (SDG 1), Zero Hunger (SDG 2), Decent Work and Economic Growth (SDG 8), Industry, Innovation and Infrastructure (SDG 9), Reduced Inequalities (SDG 10), and Partnerships for the Goals (SDG 17).
Invest in economic development
EFSE’s impact
Number of subloans facilitated to MSME and households (1)
1,200,000
Share of total rural and MSMEs subloans disbursed below EUR 20,000
74%
Share of microfinance institutions among active partner institutions
22%
Share of partner institutions with EFSE investments dedicated to rural & agri financing
42%
Share of subloans disbursed to rural end-borrowers
50%
Capacity building projects dedicated to advancing the agricultural sector (1)
40
Indirect jobs supported in MSMEs receiving financing through partner institutions (1,2)
2,262,000
Partner institutions supported with capacity building in developing and strengthening processes and practices (1)
225
People trained (1)
49,800
Volume of subloans enabled for MSMEs through EFSE financing (1)
EUR 6.7 bn
Active borrowers
86,600
EFSE partner institutions (1)
143
MSMEs receiving EFSE financing through partner lending institutions (1,2)
1,149,000
Share of outstanding portfolio in local currencies
19%
Share of MSMEs and rural sub-loans disbursed in local currencies
86%
Women-owned enterprises reached through MSMEs finance (1,2)
54,000
Share of female participants in capacity building projects
40%
Committed capital
EUR 1.2 bn
Share of private capital committed to EFSE
29%
Volume of technical assistance projects (1)
EUR 46 mn
(1) Cumulative figure since inception.
(2) Figures are modeled by Finance in Motion based on primary reporting and third-party data.
About EFSE
Fund details
How the fund invests
How to invest
Donors and investors
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