The Green for Growth Fund (GGF) has partnered with Mikrofin to encourage energy efficiency measures among households and small agri-businesses in Bosnia and Herzegovina, the GGF said in a press release. The impact of the EUR 2 million loan will be enhanced through capacity building measures, enabling Mikrofin to develop and market a dedicated energy-efficiency lending product.
Mikrofin is the leading microfinance institution in BiH providing loans to households, small agricultural producers and micro-entrepreneurs through its widespread branch network.
As a partner, Mikrofin fits well with GGF’s mission as its portfolio of home improvement and expansion loans has significant potential for promotion of energy efficiency measures like insulation of walls and roofs, replacement of windows and lighting, and upgrade of household appliances, GGF said.
Mikrofin’s agri-business clientele offers further opportunities for promoting upgrades of small agricultural equipment which is also an effective energy efficiency measure.
“We are glad to have added this leading microfinance institution to the network of our partners in BiH. Given Mikrofin’s outreach, this partnership will not only help small agri-businesses improve their energy efficiency but also cultivate awareness about the topic at the grassroots level, contributing to a demand for more energy-efficient equipment,” said GGF Chairman Olaf Zymelka.
Lloyd Stevens, Director at GGF advisor Finance in Motion, added that it is encouraging to see Mikrofin identify green lending potential in their portfolio and show the drive to capitalize on it.
“As the residential sector is one of the biggest consumers of energy in BiH, we are confident that partnering with institutions like Mikrofin with a sizeable home improvement loan portfolio will enable GGF to have the desired impact on energy efficiency of homes in both urban and rural areas,” Stevens said.
“We believe in an open and innovative approach to business and consider the cooperation with the GGF a strong platform to improve the energy efficiency standards of homes in BiH, which would help lower the energy bills and provide more comfortable living. We also appreciate GGF’s support in helping us raise awareness of the issues that can no longer be denied or ignored, such as the effects of climate change,” noted Mladen Bosnić, CEO and Director at Mikrofin.