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GAFSP Boosts Lending to Kosovo Farmers

Agribusinesses and smallholder farmers will have improved access to finance with a timely GAFSP investment in three microfinance institutions (MFIs). The project will help boost competitiveness in the agri-finance space, create jobs, improve livelihoods, and increase food security in the country.

Simone D. McCourtie / World Bank

About the Project

Over 60 percent of Kosovo's citizens live in rural areas and depend on agriculture for their livelihood. Agriculture is one of the key contributors to Kosovo's economy, accounting for nearly 8 percent of gross domestic product (GDP), 18 percent of exports, and around 30 percent of employment. Yet, the sector is underserved by banks, hindering the growth of small businesses and farmers.

IFC, along with the Private Sector Window of the Global Agriculture and Food Security Program (GAFSP), is providing loans of up to €8 million to KEP Trust (KEP), Kreditimi Rural i Kosoves (KRK), and the Agency for Finance in Kosovo (AFK). Addressing the financing gap faced by small agribusinesses and farmers, the proceeds of the loan will be used for on-lending to individual entrepreneurs and microbusinesses in Kosovo with at least 50 percent earmarked for agribusinesses. The financing from IFC and GAFSP's Private Sector Window comprises long-term senior loans—€4 million to KEP, €3 million to KRK, and €1 million to AFK. As MFIs in Kosovo have limited access to funds, IFC's support is likely to inspire confidence among other lenders, especially private banks, prompting them to provide financing to the microfinance industry. All the three MFIs—providing funding to the agribusiness sector in Southeastern Europe—are long-standing partners of IFC and the Private Sector Window of GAFSP.


  • Kosovo

Project Status




Supervising entity

  • IFC