Luxembourgand Chișinău, 24 November 2022 - The European Fund for Southeast Europe Development Facility (EFSE DF) and the Green for Growth Fund Technical Assistance Facility (GGF TAF) have jointly committed EUR 900,000 in grants to cover the equity and working capital needs of greentechs and small and medium enterprises (“SMEs”) in Ukraine. The funding is intended to sustain business continuity and safeguard business resilience and viability.
The technical assistance project, which is part of the ‘Stand with Ukraine’ program set up by EFSE, GGF and the funds’ advisor, Finance in Motion, aims to support at least 20 businesses that were able to remain operational following Russia’s invasion in February 2022. This includes businesses forced to relocate within or outside Ukraine’s borders and require assistance to pursue their business operations.
Targeted businesses include SMEs with up to 250 employees, including those providing solutions in the renewable energy, energy efficiency and resource efficiency sectors. Additional eligibility is based on the companies’ contribution to employment and income creation.
Over and above the humanitarian crisis caused by the war, conditions for business activity in Ukraine continue to deteriorate daily, with the International Monetary Fund predicting a 35% contraction in the Ukrainian economy this year should the Russian invasion become a prolonged conflict.
It is in this vein that the GGF TAF, together with the EFSE DF, formed a common response to mitigate the devastating effects of the war.
Andrea Hagmann, Chairperson of the EFSE DF, said: “Given the massive toll the war has had on the Ukrainian economy and businesses, there is an urgent need to assist those companies that are still operating in Ukraine and who continue to play a vital role in keeping the wheels of the economy turning. That is why we have targeted direct development assistance to Ukrainian SMEs and greentechs. We believe this will help strengthen local efforts and facilitate a more resilient and sustainable entrepreneurship ecosystem.”
On the GGF’s participation in the project, Technical Assistance Facility Chairperson Klaus-Peter Pischke said: “We are honoured to play a role in safeguarding business continuity for SMEs and entrepreneurs in Ukraine. Through the provision of capital grants, we hope to sustain businesses and help them increase resilience to stay afloat during these turbulent times.”
ABOUT THE EFSE DEVELOPMENT FACILITY
The Development Facility of the European Fund for Southeast Europe (EFSE DF) was created in 2006 to support the fund’s development finance mandate. It deploys effective, targeted, and innovative technical assistance to maximise the impact and extent of the fund’s development finance mandate in target countries. The EFSE Entrepreneurship Academy is an arm of the EFSE DF that specifically focuses providing entrepreneurs with the resources, training, opportunities for financial backing, and other means necessary to turn good ideas into successful enterprises.
Managed by impact asset manager Finance in Motion, the facility operates independently from the fund in a fiduciary arrangement under Luxembourg law. The Development Facility Committee, comprising members nominated by KfW Development Bank, the development bank of Austria OeEB, and the Dutch development bank FMO, is responsible for assessing and approving all project proposals and providing strategic guidance to the facility.
For more information on the European Fund for Southeast Europe, please visit: www.efse.lu
For more information on Finance in Motion, please visit: www.finance-in-motion.com
ABOUT THE GGF TECHNICAL ASSISTANCE FACILITY
The GGF Technical Assistance Facility plays a key role in supporting the fund’s promotion of energy efficiency, renewable energy and improved resource management by providing tailored advisory to the fund’s partners, which include financial institutions, project developers and key energy sector players, to produce synergy with investments of the fund.
The facility operates hand in hand with the GGF, complementing its investments with the following activities: capacity development of GGF partners; validation and monitoring of energy and resource savings and CO2 emission reductions; strategic advice based on research; increasing the awareness and acceptance of green solutions in the financial sector and among the public.
Managed by impact asset manager Finance in Motion, the facility operates independently from the fund, governed by a fiduciary arrangement under Luxembourg law. The Technical Assistance Facility Committee, which represents the initiators of the fund and donors of the facility, takes all strategic and technical decisions with respect to the facility and provides strategic guidance to the facility manager.
For more information see www.ggf.lu and follow us on Twitter @GreenGrowthFund
For more information on Finance in Motion, please visit:www.finance-in-motion.com
Media contact EFSE and GGF