After a slow start during 2021, the programme has managed to get up to speed better during 2022.
Objective 1. Increased access to finance for Youth MSMEs.
In November 2022, an official launch event was held where Sida and Italy presented brief remarks. In connection to the event, four Partner Financial Institutions joined the programme (target: 4). In total, EUR 23 million in loans were signed for on-lending to youth businesses in Bosnia and Herzegovina, Kosovo, Montenegro, and Serbia.
Italy through the Central European Initiative's Fund for Technical Cooperation joined the programme as a co-donor. Moreover, negotiations with the EU are ongoing regarding potential funding for the First Loss Risk Cover component (currently covered by EBRD).
In general, the market response has been positive and the pipeline for lending is strong.
Objective 2. Diversified and deepened financial system through increased capacity of PFIs under the Programme to serve the young entrepreneur segment.
Market assessments were undertaken for all six Western Balkans countries with findings to be concluded in Q1 2023 which will be shared with financial sector and policy stakeholders;
Technical assistance programmes were launched with all 4 PFIs to build their capacity to serve youth entrepreneurs. Comprehensive baseline assessments and strategic planning workshops to help the PFIs understand their gaps in servicing youth MSMEs have been conducted to inform tailored technical assistance plans for each PFI.
Objective 3. Increased access to know-how and development expertise for young entrepreneurs and partnering entities with a mandate to support youth entrepreneurship, as well as increased skills and expanded networks.
During 2022, 25 advisory projects (target: 25) were undertaken in the frame of the programme, compared to 5 in 2021. Moreover, 350 Youth MSMEs were trained (target: 260), compared to 12 in 2021. Due to the data on impact from the advisory projects (such as increased employment, growth, general satisfaction etc.) being collected after one year, it is expected that more insights on impact and relevance of the advisory projects will be gained in 2023.
