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AFK, a leading Kosovan MFI, partners with Proparco to support women entrepreneurs and rural communities
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AFK, a leading microfinance institution (MFI) in Kosovo, will strengthen its support to underserved entrepreneurs thanks to a EUR 5 million loan granted by Proparco. The financing will primarily target women entrepreneurs and rural communities, with 2/3rd of the facility dedicated to women-led businesses.
Established in 1999, the Agency for Finance in Kosovo (AFK) operates in a context where the financing gap for micro, small and medium-sized enterprises is estimated at approximately 3.5% of GDP. Limited access to finance remains one of the main constraints to private sector development, particularly for women entrepreneurs and businesses operating in rural areas. The whole project is 2X Challenge-aligned and 2/3rd of the facility is dedicated to new loans to women clients. The MFI aims at empowering women through dedicated products, financial incentives to loan officers on gender targets, training programs (financial, business and maternal health), gender equality sensitization and social awareness campaigns.
Focusing on Gender Equality
AFK has made a formal commitment to gender equality, embedded in its institutional strategy, with the objective of supporting women entrepreneurs through dedicated loan products, training programs, and incentives for loan officers.
The institution has established gender-responsive management systems, including policies on non-discrimination, equal opportunity, care, and anti-harassment, as well as a code of conduct and an internal grievance mechanism. AFK also regularly collects sex-disaggregated data through its social performance reporting.
The dedicated loan line of EUR 3 million is expected to significantly expand the share of women borrowers over the next three years.
Supporting Rural Communities
By expanding financial inclusion for these segments, the project aims to reduce gender, territorial and socioeconomic inequalities while strengthening the resilience of local economic systems. AFK differentiates itself through its strong presence outside the capital, with 46% of its clients based in rural areas. As of March 2026, the institution serves 27,900 active clients through a network of 31 branches, with an outstanding portfolio of EUR 96 million and a total of 270 employees.
“Signing this agreement with Proparco represents an important milestone for AFK. This financing will allow us to further expand our outreach to women entrepreneurs and underserved rural clients, increasing our development impact across Kosovo,” said CEO of AFK, Xhevdet Spahija.
“This partnership will be about two things. First, supporting women entrepreneurs. This is one of the main pillars of Proparco and France's global strategy to support women in business, to make financing available to increase their opportunities and contribute increasingly to the economic ecosystem. Second, supporting entrepreneurship in the most rural areas, where the financing gap is most critical and where the support of AFK people, for example, is most needed” said, Euroasia Regional Director of Proparco, Steven Gardon.
This transaction marks Proparco’s first collaboration with AFK and its second debt financing operation in Kosovo. The project contributes to Proparco’s 2023–2027 strategy, particularly its objectives of increasing access to economic opportunities and reducing inequalities, and supports the achievement of SDG 1 (No Poverty), SDG 8 (Decent Work and Economic Growth) and SDG 10 (Reduced Inequalities).