Microfinance Provider Partner Expands Energy Efficiency Portfolio in Bosnia and Herzegovina

With the help of the Green for Growth Fund (GGF), Partner has grown into one of the largest micro-lenders in Bosnia and Herzegovina, with over 60 offices. It has achieved an expansion of its rural clientele of 20%.

With 5,000 microloans, Partner has helped clients in Bosnia and Herzegovina insulate their homes and reduce air pollution, energy consumption and energy costs, and improve the quality of life across the country . GGF has supported the microfinance provider for over a decade.

Partner provides financial services to communities with difficult or no access to commercial sources of finance and supports business development. It has granted more than 29 million euros in microloans to households and small businesses and has increased its rural clientele by 20%.

Investors and lenders outside the EU can sustain their businesses by aligning now with stricter EU regulations

Having realized the untapped business potential of rural communities, Partner is now one of the largest microfinance institutions in the country, with more than 60 offices.

In Bosnia and Herzegovina, over 75% of primary energy is supplied by fossil fuels, of which the housing sector consumes around 40%. Most of the electricity is produced in thermal power stations, with most private households using coal. This has led to an increase in air pollution across the country.

Global approach to lines of credit, risk management

By developing the Home Energy line of credit for customers and implementing a loan risk management system, Partner has accelerated the growth of its portfolio and gained a competitive advantage. Borrowers also have major advantages: they have more efficient and cleaner heating that is easier to use.

The partner stimulates primary energy savings and reduces CO2 emissions by raising awareness among potential customers and implementing measures on individual housing

GGF said it has demonstrated, through collaboration, how green finance can help institutions reach a wider client base and ensure sustainable portfolio growth, while enabling positive and widespread environmental impact. The fund has an open invitation to anyone wishing to start a Green travel.

In 2012, Partner found an ally in the Green for Growth Fund, which, in addition to financial resources, also provided the technical assistance needed to launch such a pioneering project, said Selma Jahić, Director of Assistance. . “By raising awareness among potential customers and implementing measures on individual housing, we have a significant impact on primary energy savings and the reduction of CO2 emissions at national level. None of this would be possible without good and reliable partners like GGF, and we look forward to continued cooperation in the years to come. “

Green transformations empower lenders and businesses

Green improvements make banks and businesses more resilient, as borrowers are less likely to be affected by climate transition risks and therefore more reliable in terms of repayment.

While banking institutions in the European Union must already comply with the existing regulatory framework for greening finance, those in neighboring countries have every interest in adopting a green strategy now. Investors and lenders outside the EU can make their businesses sustainable by aligning themselves with stricter European regulations now.

The GGF was launched in 2009 by the German Development Bank KfW and the European Investment Bank (EIB), with financial support from the European Commission, the German Federal Ministry for Economic Cooperation and Development (BMZ), the European Bank for Reconstruction and Development (EBRD) and Austrian Development Bank (OeEB).

Last year, the facility mobilized 135 million euros in investments and technical assistance commitments, bringing the portfolio to more than 1.1 billion euros and more than 40,000 end borrowers. The funds were used to finance measures that stimulate a green recovery and advance energy efficiency, renewables and resource efficiency in South-Eastern Europe, Turkey, the EU’s eastern neighbors, Middle East and North Africa.

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