European Fund for Southeast Europe (EFSE) - EBRD, European Commission, KfW, BMZ, ...

Any donor
International Finance Institutions
European Union
Geographical focus: 
Thematic focus: 
Tourism in general
Trade, Investment and Competitiveness in Tourism
Intro text: 
The EFSE is more than just a fund: its public-private partnership (PPP) structure has made the EFSE an international role model for intelligent and innovative development policy in the 21st century. The PPP approach enables the EFSE to mobilise funding from private institutional investors to top up international public donor funding for development finance.

Official website

Geographic focus

Southeast Europe

Who can apply?

MSMEs in Member Countries in Southeast Europe

Objectives and activities

Objective: to promote responsible financial sector development in the EFSE’s target countries and ensure MSEs and low-income households have sustainable access to financial services.

Activities: The Fund aims to foster economic development and prosperity in the Southeast Europe region and in the European Eastern Neighbourhood region through the sustainable provision of additional development finance, notably to micro and small enterprises (MSEs) and to private households, via qualified financial institutions. In pursuing its development goal the Fund will observe principles of sustainability and additionality, combining development and market orientations.


  • MSME Finance
  • Agricultural Finance
  • Responsible Finance
  • Mobile Financial Services
  • Local Currency Lending
  • Housing Finance

Type and level of funding

The EFSE is replenished with funds from various donor agencies and European governments, international financial institutions, as well as by private investors. To date, the EFSE has acquired committed funds of over EUR 1 billion, approximately 66 % of which is private capital. This leveraging potential is critical for the region whose capital markets are still in a development stage where economic growth depends more than ever on ready access to long-term financing.

The EFSE Development Facility’s activities are funded by:

  • Donors from the development finance community who have a stake in the EFSE Development Facility’s mission and provide general funding or earmark their grants to specific countries or projects; and
  • A share of the EFSE’s investment profits which are set aside on an annual basis by the Board of Directors;
  • EFSE partner lending institutions, which are required to share in the costs of the technical assistance and training provided.