Photo: Mass Designs from Pixabay
The Green for Growth Fund (GGF) has invested EUR 3 million into microfinance organization KEP Trust for on-lending to private individuals and small farmers in Kosovo*.
The loans will be made available particularly for borrowers in rural areas to implement energy efficiency and resource efficiency measures in their homes and businesses. Through the new investment, the partners aim to support a green recovery both during and after the COVID-19 crisis, according to a press release by GGF.
The funding will be used for new agricultural equipment or the energy renovation of households
The GGF’s investment will support KEP Trust in expanding credit lines for green measures – such as updating agricultural equipment with more energy-efficient models or improving household insulation in order to reduce energy waste.
By financing such activities, the investment is expected to save over 2,700 MWh and prevent more than 320 tons of CO2 emissions every year.
The GGF and KEP Trust’s goal is to maintain the ability of borrowers to continue investing in a greener future
Moreover, the partners particularly aim to maintain the ability of borrowers to continue investing in a greener future, even against the background of the COVID-19 crisis. The new funding intends to help counteract the decreased availability of liquidity that has plagued many smaller enterprises and individual households since the outbreak of the pandemic, the GGF said.
KEP Trust is Kosovo’s leading microfinance organization, serving over 20,000 clients primarily in rural areas. Since 2017, it has been an important ally in enabling the GGF to increase the availability of dedicated financing to help local businesses make their operations more sustainable.
Zymelka: KEP Trust is a valuable partner
GGF Chairman Olaf Zymelka said that KEP Trust is led by a strong, professional management team that is dedicated to expanding access to finance in underserved areas.
“This makes KEP Trust a valuable partner in helping the GGF pursue its mission to channel funding for green economic growth to those in need of it. Especially in turbulent times like these, it is more important than ever to equip local businesses and families with the resources necessary to bolster their long-term sustainability,” Zymelka said.
CEO Shpend Nura said that KEP Trust is glad to strengthen the partnership and cooperation with the GGF, which is crucial to further expanding the access to finance for customers in rural areas.
* This designation is without prejudice to positions on status and is in line with UNSCR 1244/99 and the ICJ Opinion on the Kosovo declaration of independence.
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