Digitalization of small and medium-sized businesses - EBRD and EU finance 377 million euros in the Western Balkans
Small and medium-sized enterprises (SMEs) across the Western Balkans region will benefit from new financing opportunities made available through the Western Balkans “Go Digital” program. This program combines loans, grants and technical assistance for investments in digitalization, automation and green technologies.
The project was developed by the European Bank for Reconstruction and Development (EBRD) with the support of the European Union (EU). It aims to foster innovation, competitiveness and sustainable growth in the private sector of the Western Balkans.
The EBRD will provide up to €350 million in loans to partner financial institutions in the Western Balkans region, which will then on-lend the funds to SMEs. Businesses will also benefit from grant incentives equal to 10 percent of the loan amount, financed by the EU. In total, the EU is providing €27.6 million in grant incentives and technical assistance for the programme, provided through the Western Balkans Investment Framework.
The plan builds on the successful pilot program "Go Digital in Bosnia and Herzegovina", which supported investments by nearly 200 local companies. The event was attended by representatives from partner financial institutions and the business sector from the region. It marks a major step in increasing the sustainability and competitiveness of the private sector across the region.
Small and Medium Enterprises (SMEs) account for 99 percent of all businesses in the Western Balkans and play a key role in meeting the digital and green transition objectives, highlighting the need for sustainable business practices. Automation and digitalization drive productivity, with businesses that adopt these technologies seeing an increase in efficiency of up to 20 percent.
However, many SMEs in the Western Balkans struggle with digital adoption and transformation; the baseline level of digital intensity is 20 percentage points lower than that of their EU peers, only a fifth of SMEs sell online, and less than 10 percent have used more innovative digital processes, such as cloud computing, big data, and artificial intelligence.
Many small and medium-sized enterprises (SMEs) still struggle to secure financing for digitalization. However, there is a huge untapped potential. By investing in digital technologies and tools, businesses can improve efficiency, automate processes, increase sales, provide better customer service, and expand market access; all of which increase competitiveness.
This program aims to address these gaps by increasing both digital awareness and access to finance.
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