Luxembourg and Sarajevo – The Green for Growth Fund (GGF), an impact investment fund advised by Finance in Motion, has joined hands with the Microcredit Foundation LIDER to promote energy efficiency and use of small renewable energy equipment among households and farmers in Bosnia and Herzegovina through a loan of EUR 1 million. The loan, along with the complementary capacity building measures, is aimed at enhancing LIDER’s green lending portfolio while enabling it to develop energy-efficiency and renewable-energy lending as a separate product line.
LIDER boasts a significant loan portfolio in home improvement, agriculture and microenterprises, which shows great potential for promoting energy efficiency, especially in construction field and agricultural machinery. Free non-financial advisory services that LIDER offers to its customers are also a valuable channel for building awareness about energy efficiency and renewable energy.
“We are very pleased to be joining LIDER in promoting energy efficiency and green energy at the micro-enterprise and household level in Bosnia and Herzegovina,” said GGF Chairman Olaf Zymelka. “We at GGF believe that the benefits of green energy and using energy resources efficiently need to be felt at the grassroots level, if we wish to contribute to a real transformation in the region’s energy generation and consumption patterns. I am confident that this partnership is yet another right step in this direction.”
GGF Chairman Olaf Zymelka stated: “It is great to see Ohridska Banka develop into a stronger regional partner for renewable energy and its drive to diversify its portfolio into energy efficiency lending. The enhanced capacities of Ohridska Banka, coupled with Macedonia’s positive economic outlook and reassuring energy policies signal that the time is ripe for our partnership to yield its best results. ”
Lloyd Stevens, Director at GGF advisor Finance in Motion, added: “The ongoing expansion of LIDER’s portfolio and geographic outreach will provide GGF the opportunity to extend energy efficiency and renewable energy loans beyond the urban market to the rural communities.”
General director of MCF LIDER, Džavid Sejfović stated: “The cooperation with GGF will strengthen our capacities to help our clients implement energy efficiency measures and install renewable energy equipment in their facilities, reducing their energy bills while being environment-friendly. We believe that this is just the beginning of our successful cooperation with GGF, because we expect that the general awareness of the importance of energy efficiency and renewable energy in our country will increase over time, leading to a growing interest in the implementation of this type of projects in both households and businesses.”
ABOUT THE GGF
The Green for Growth Fund invests in measures designed to cut energy use and CO2 emissions and improve resource efficiency in 19 markets across Southeast Europe, the Caucasus, Ukraine, Moldova, the Middle East and North Africa. The fund provides financing to local partners that on-lend to enterprises and private households, and it invests directly, primarily through the contribution of senior debt, in renewable energy projects. The GGF’s Technical Assistance Facility maximizes the fund’s investment impact through support for capacity building at local financial institutions and partners.
The GGF was initiated as a public-private partnership in December 2009 by Germany’s KfW Development Bank and the European Investment Bank, with financial support from the European Commission, the German Federal Ministry for Economic Cooperation and Development, the European Bank for Reconstruction and Development, and the Austrian development bank OeEB. The fund’s growing investor base comprises donor agencies, international financial institutions and institutional private investors, including the International Finance Corporation, the Dutch development bank FMO, the German ethical bank GLS, Church of Sweden, and ASN Bank. The GGF is advised by Finance in Motion GmbH. MACS Management & Consulting Services GmbH, Frankfurt am Main acts as the technical advisor.
LIDER is a Microcredit Foundation established in 2002, continuously providing long-term access to financing for entrepreneurs and households in 40 Municipalities in 5 Cantons (Zenica-Doboj Canton, Sarajevo Canton, Middle Bosnia Canton, Tuzla Canton and Herzegovina Canton) through a network consisting of 8 Branches and 14 satellite offices.
MKF LIDER, as socially responsible organization, aims to support local community development in all segments, enhance employment by strengthening the entrepreneurship, and impact the living standard of low-income families, through extensive support to entrepreneurs, farmers and households. Besides financial support, all LIDER’s clients are provided with free of charge business development services in the area of promotion, business advice, education and networking, all in line with their needs. Long-term experience in financing of businesses, agriculture and housing projects, carefully developed financial and non-financial services, and professional credit staff are available to all clients that envision their future primarily in business and self-employment. LIDER has, over the past seventeen years of operation, disbursed over 46.000 loans amounting to 130 million BAM, out of which more than 65 million were disbursed to entrepreneurs and farmers, and over 11.100 loans for home improvement amounting to almost 40 million BAM.
Media contact GGF
Manager, Marketing & Communications
Phone: +49 (0)69 271 035-171
Media contact LIDER
Phone: +387 32 440 781