Kosovo has just taken the lead in the Western Balkans for access to finance for micro, small, and medium-sized enterprises (MSMEs), according to the 2025 OECD Convergence Report. This remarkable achievement – with 61.8% of business loans going to MSMEs, surpassing the EU average of 49.5% – is not a coincidence. It is the result of a series of coordinated, strategic interventions over the past decade. Among the early and pivotal contributors to this journey is the KOSME project, implemented by ECIKS.
Funded by the Austrian Development Cooperation and the Swiss Agency for Development and Cooperation (SDC), the KOSME project (2012–2016) was designed to improve access to finance for SMEs through facilitating the establishment of a credit guarantee fund in Kosovo. Together with the Ministry of Trade and Industry, ECIKS played a central role in initiating and coordinating this process, leading implementation in close cooperation with other key stakeholders.
The origins of the credit guarantee scheme itself trace back even further, to a 2007 proposal developed by ECIKS and submitted to the Government of Austria. That early concept called for the establishment of a credit guarantee mechanism in Kosovo, inspired by Austria’s own model. What began as a forward-looking idea ultimately helped transform Kosovo’s financial landscape for SMEs.
In practical terms, ECIKS’s contribution to the establishment of the Kosovo Credit Guarantee Fund (KCGF) was both foundational and strategic. It began with conducting an in-depth feasibility study that not only assessed various models, but also recommended a new tailored approach for Kosovo, a corporate structure that ensured operational independence while allowing for limited government ownership. This recommendation proved to be a turning point and became the reference document guiding all subsequent steps in the fund’s development. ECIKS then facilitated donor coordination efforts and played a key role in drafting the Memorandum of Understanding among relevant stakeholders, ensuring alignment and commitment across institutions.
Furthermore, ECIKS contributed professional and legal expertise in the drafting of the law on the establishment of the KCGF, helping embed socio-economic criteria that reflect Kosovo’s development priorities including support for women-owned businesses, minority entrepreneurs, and job creation. Lastly, ECIKS commissioned and oversaw the development of a comprehensive funding strategy to help the KCGF secure additional capital and ensure long-term sustainability. This strategy laid out both a roadmap for engaging international donors and the potential introduction of innovative financial instruments, ultimately attracting interest from institutions such as OFID and EBRD.
The impact of these efforts is tangible: more than €931 million in guaranteed loans have been disbursed to date, backed by over €474 million in approved guarantees. Thousands of businesses, many of them micro and small have gained access to finance they would otherwise be excluded from.
This latest OECD ranking validates the long-term relevance and effectiveness of the KOSME project. More importantly, it demonstrates what is possible when targeted donor support is paired with deep local expertise and execution. ECIKS’s approach grounded in professionalism, early initiative, and results-oriented implementation continues to shape policy and economic development in Kosovo.
As Kosovo looks ahead to even stronger private sector growth, ECIKS remains committed to supporting impactful, systemic reforms that enable inclusive economic opportunity.
