The Western Balkans take on an increasingly central role in the broader strategy pursued by Cassa Depositi e Prestiti to expand its work in supporting the sustainable development and growth of enterprises in emerging economies, thanks to the opening of the first CDP office outside the EU, in Belgrade, a Memorandum of Understanding signed in Tirana, and agreements with the local branches of UniCredit and Intesa Sanpaolo.
The first step marking a consolidation of CDP’s role in promoting economic cooperation in the region came on 1 February with the opening of a new office in Belgrade to serve the entire Western Balkans area. The move was swiftly followed by the signing of two financing arrangements, under the program Green Finance for Inclusion supported by the EU resources, worth a total of 50 million euro, including a 10-million-euro agreement with Banca Intesa Beograd and a 40-million-euro agreement with UniCredit Bank Serbia.
The funding – unlocked by Cassa Depositi e Prestiti through the Western Balkans Investment Framework (WBIF) promoted by the European Union – will be targeted by the two leading Italian banks in the country at small and medium enterprises in Serbia, in the form of soft loans to further their growth. The funding provided by CDP is expected to generate a multiplier effect of at least 2x the amount of financing delivered, for a total of no less than 100 million euro. The initiative will enable support to be channelled to at least 250 local enterprises, creating new jobs and furthering efforts to achieve no less than five of the Sustainable Development Goals (SDGs) set by the United Nations.
The mission to Tirana on 6 February instead led to the signing, together with SIMEST and Albania's National Economic Council, of a Memorandum of Understanding, which formally designates CDP as the Italian Financial Institution for International Cooperation & Development Finance in Albania. During the mission, CDP also negotiated a financing arrangement, also this under the umbrella of the program Green Finance for Inclusion supported by EU resources, worth 10 million euro with Intesa Sanpaolo Bank Albania, which similarly falls under the Western Balkans Investment Framework. The funding will be targeted by the sole Italian bank operating in the country at small and medium enterprises in Albania, in the form of soft loans to promote their growth. The funding unlocked by CDP is expected to generate a multiplier effect of more than 20 million euro. The initiative will enable support to be channelled to at least 50 local enterprises, creating new jobs and furthering efforts to achieve no less than five of the Sustainable Development Goals (SDGs) set by the United Nations.
The Western Balkans Investment Framework (WBIF) is a joint initiative of the EU, financial institutions, bilateral donors, and beneficiaries, aimed at enhancing harmonisation and cooperation in investments for the socio-economic development of the region and contributing to the European perspective of the Western Balkans. Since 2022, CDP, through its access to WBIF funds for the private sector, has provided investment grants and technical assistance with a view to furthering financial inclusion in the Western Balkans.
In particular, for Serbia and Albania, Italy is a key economic and trading partner, given the great number of Italian companies engaged in various strategic sectors. The latest ISTAT figures show that in 2021 around 1,200 Italian companies had operations in Serbia, employing an estimated 50,000 people and contributing 5.5% to the country’s GDP; in that same year, an even higher number of Italian companies – 2,675 –had operations in Albania, accounting for more than 40% of the foreign enterprises operating locally.
CDP was also the first financial institution, together with Germany's KfW, to join the Enterprise Expansion Fund II" (ENEF II), launched by the European Bank for Reconstruction and Development and aimed at supporting the growth of local enterprises in the Western Balkans and improving their Environmental, Social and Governance (ESG) performance. During the fund's launch event, organized in collaboration with the Italian Embassy in Belgrade, a new investment by Banca Intesa was announced, bringing the fund's total endowment to more than 70 million euros.
CDP will continue to step up its support for the growth of local enterprises in emerging economies over the upcoming months, with two new representative offices set to be opened in North Africa – in Cairo, Egypt and in Rabat, Morocco.