€1.6BAssets under management
of which €102 Mfor Ukraine Sub-Fund
Impact Report 2025
20 Years of Driving Inclusive Growth
Message from our Board and Portfolio Manager
In 2025, EFSE celebrates 20 years of driving inclusive growth across Southeast Europe and the Caucasus. This milestone reflects two decades of resilience, long-term innovative partnerships, and sustained commitment to catalyzing impact, even in times of crises.
Launched in 2005, EFSE was a true innovation in public-private partnership, the first blended finance impact fund for micro, small, and medium enterprises (MSMEs) – the economic backbone of this fast-growing region - and remains one of the largest of its kind today. Supported by its Development Facility, its advisory and capacity-building arm, EFSE delivers combined impact across financing and capacity development.
Key Investment Figures
Key Investment Figures
As of Dec 31, 2025
38%share of private capital in the Fund
€5.1BCumulative volume invested
€12.6Bcumulative volume of sub-loans enabled to MSMEs and households through EFSE financing
As EFSE marks 20 years, we continue to combine strong portfolio growth with targeted support in Ukraine and a clear focus on sustainability and inclusion.
Linda Broekhuizen, Chairperson
Key Impact Figures
Key Impact Figures
Cumulative figures since fund's inception, as of December 2025
* Figures are modelled by the fund based on primary reporting and third-party data
€ 12.6Bcumulative volume of sub-loans enabled to MSMEs and households through EFSE financing
Supporting SDG8Decent Work and Economic Growth
2.9 MIndirect jobs supported in financed MSMEs*
Supporting SDG8Decent Work and Economic Growth
1.2 M Indirect jobs supported in financed MSMEs held by women*
Supporting SDG5Gender Equality
81,900People benefitted from training and capacity building
Supporting SDG8Decent Work and Economic Growth
How Sustainable Agriculture Strengthens EU-Western Balkans Economic Integration
Perspectives from the Portfolio Manager
Agriculture remains a backbone of the Western Balkans’ economy, but unlocking its full potential requires a shift toward sustainability, innovation, and better access to finance.
It takes a specialist to invest in these markets
It takes a specialist to invest in these markets
We live and work where our assets are based.
With over 20 years of experience, we know how to navigate shifting market dynamics.
Our impact stories
We work with local financial institutions to drive inclusive growth across markets, businesses and communities.
Ukrainian agriculture: Building wartime resilience, preparing for post-war growth
Strengthening sustainable practices in North Macedonia's manufacturing sector
Nurturing the sustainable transformation of farming in Moldova
In 2025, EFSE continued to deliver on its mandate, supporting recovery, strengthening resilience, and enabling growth across its target markets.
Jasminka Begert, EFSE Portfolio Manager
Advisory and Capacity Building highlights
In 2025, EFSE further strengthened its Advisory & Capacity Building activities, supporting partner institutions and local businesses in adapting to evolving market conditions and advancing sustainable growth.
A strong focus remained on ESG advisory, with 11 new initiatives helping financial institutions integrate sustainability into their strategies, strengthen risk management, and better align with EU standards. In parallel, we expanded support for MSMEs through targeted advisory, enhancing their resilience, competitiveness, and access to markets.
Capacity building efforts were significantly scaled, with more than 800 financial institution staff and 400 farmers trained, supporting the rollout of sustainable agriculture financing and strengthening technical expertise across regions. At the same time, gender-focused initiatives reached over 400 women entrepreneurs, advancing inclusive finance and supporting greater economic participation.
Alongside these efforts, EFSE continued to enhance institutional capacities in risk management, digitalisation, and gender-smart financing, while advancing financing-linked grant programmes in Ukraine to further support MSMEs operating in complex environments.
for Ukrianian MSMEs
for Ukrianian MSMEs
Financing-linked Grant Programme
Expanded implementation of USF financing‑linked MSME grants with four partner institutions, supporting businesses to maintain operations and build resilience in challenging environments.
Sustainable Agriculture Financing
Sustainable Agriculture Financing
Scaling sustainable agriculture
Expanded sustainable agriculture advisory across 12 projects, training over 400 farmers and supporting partner institutions in adopting EFSE’s Sustainable Agriculture criteria and climate-resilient agri-lending.
ESG
ESG
ESG advisory and implementation
Launched 11 ESG initiatives to support partner institutions in strengthening sustainability strategies, improving risk management, and aligning with EU standards.
Women entrepreneurs
Women entrepreneurs
Advancing gender-inclusive finance
Implemented 6 gender-focused projects reaching over 400 women entrepreneurs, strengthening access to finance and capacity building and promoting inclusive economic participation.
Impact
Impact
How we manage Impact
Through our best-in-class impact management & measurement, we analyse borrower data to enable more targeted, evidence-driven portfolio management.
Advancing gender equality through inclusive finance
EFSE is committed to promoting gender equality as a core component of sustainable and inclusive economic development, in line with EU priorities on social inclusion and responsible finance. Through its advisory and capacity building activities, the Fund supports partner institutions in integrating gender-responsive practices and expanding opportunities for women entrepreneurs.
A key example is the “Strengthening Gender Lens Finance” project with MI-BOSPO in Bosnia and Herzegovina, a long-standing EFSE partner and one of the country’s leading microfinance institutions. The project aims to institutionalize gender-sensitive approaches by formalizing internal policies, improving gender-disaggregated data practices, and addressing structural barriers faced by women-owned MSMEs.
As part of this initiative, MI-BOSPO adopted a Diversity, Equity and Inclusion policy with a strong gender focus and strengthened staff capacities to embed gender-sensitive practices across operations. In parallel, targeted training programmes have been delivered to women entrepreneurs, enhancing their financial management and sales capabilities.
The project also supported the development of a dedicated digital platform for women entrepreneurs, providing visibility for their businesses, access to expert knowledge, and opportunities for networking. Together, these measures contribute to building a more inclusive financial ecosystem and enable women-led businesses to grow sustainably.
Our investors
Information for potential investors
In respect of the United States of America, Canada, Japan or Australia or any other jurisdiction in which the distribution, offer, sale, transfer or resale would be prohibited by applicable law, no investment in notes/shares or other instruments of the Fund (or its sub-fund(s)) can be offered or made.