Supporting green and social financing in North Macedonia

AFD is supporting the Development Bank of North Macedonia (DBNM) to expand its offer for sustainable financial products.

Context

North Macedonia has set ambitious targets in terms of greenhouse gas emissions reduction and energy transition. The current energy mix is dominated by high-emitting coal thermal power plants. Massive investments are required for the decarbonization of the economy.

The Development Bank of North Macedonia JSC Skopje (DBNM), as a public development finance institution, is one of the key actors to accompany the development of a climate finance offer while contributing to inclusive and innovative growth driven by the private sector. Its strategic goal is to support the development of the Mac-donian economy, through intermediate financing of small and medium-sized enterprises (SMEs), mid-caps and export-oriented companies.

Description

The project comprises:

A credit line of €50 million to DBNM which would be used to fund investments by private companies in green projects (energy efficiency, renewable energy, greening production processes) and to finance SMEs owned or managed by women;
A technical assistance programme financed through a grant of €400,000 to support the implementation of the credit line by DBNM and its partner financial institutions, build their capacity in the area of sustainable finance and develop their environmental and social management system (ESMS).

Impacts

The projects aims to contribute to a resilient, inclusive and low-carbon economic model in North Macedonia, by accelerating the development of a green finance offer (including the exploration of digital solutions) and by improving access to finance for women entrepreneurs.

Download the project sheet

01/01/2023

Project start date

01/01/2027

Project end date

4 years

Duration of funding

Financial Systems,

Energy

Sectors

North Macedonia

Location