KRK, a major Kosovan player in microfinance, becomes the first partner of Proparco and the AFD Group in Kosovo
published on 26 November 2024
KRK, a major player in microfinance in Kosovo, will be able to strengthen its offer to micro-entrepreneurs and SMEs thanks to a 5 million euro loan line granted by Proparco. KRK places particular emphasis on the agricultural sector, energy efficiency and women's entrepreneurship.
Since 2003, Kreditimi Rural i Kosovës (KRK) has been operating in a context where the financing gap for Kosovar micro and SMEs is estimated at around 3.5% of GDP. This lack of access to finance is one of the main obstacles to growth in the agricultural sector, which accounts for around 20% of employment in Kosovo. Supporting the agricultural sector helps to strengthen food security in Kosovo, which is heavily dependent on imports, which account for 60% of the Kosovars' total consumption.
To meet these challenges, KRK offers financial services to micro-entrepreneurs and SMEs, focusing on the agricultural sector, which accounts for 30% of its portfolio. Today, KRK serves 25,732 borrowers, 21% of whom are women, with a portfolio of €83 million deployed via a network of 29 branches and 283 employees.
“With Kosovo's economy largely driven by micro-businesses and SMEs, which make up 60% of GDP, supporting KRK’s activity means bolstering entrepreneurship in sectors that catalyze sustainable development—from agriculture and women’s empowerment to the energy transition,” explains Stéphane Froissardey, Proparco’s Regional Director
“KRK is very happy to launch partnership with Proparco based on signed the contract of 5 million Euros with aim to contribute in increase of impact in targeted group of clients with limited access to finance services.” Declares Lulzim Sadrija, KRK’s CEO.
With this first project in Kosovo at Group level, Proparco is implementing the “Explore” pillar of its 2023-2025 strategy, by entering new markets. This project is part of a broader initiative to support the microfinance sector in the Western Balkans, following the financing, in 2022, of NOA in Albania and Mikrofin in Bosnia-Herzegovina.
