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In the Western Balkans, a region highly affected by environmental degradation, social inequality, demographic decline, and other development challenges, the financial sector and businesses are facing a wake-up call. For them, ESG is no longer a question of ethics or corporate social responsibility alone; it is a question of business survival.
Impact Spotlight
Despite its fertile soil and status as one of the EFSE region’s largest agricultural producers, the big number of small-scale farms with limited assets makes the country particularly vulnerable to climate shocks, threatening livelihoods. These challenges are amplified by market disruptions caused by the Russian invasion of Ukraine. The urgency to promote sustainable agriculture in Romania is clear. Sustainable practices, like efficient irrigation, organic farming, and minimal soil movement techniques, can help farmers cut costs and mitigate risks. Such practices also protect soils and increase yields, enabling farmers to generate and grow stable incomes. This leads to stronger food systems, reduces rural poverty, and benefits the environment. Given its importance for the economic viability and competitiveness of farmers, sustainable agriculture is a priority in Romania’s sustainable development strategy, underpinned by demanding EU regulations and support schemes.
Thanks to EFSE and Mikrofin, I was able to deepen my knowledge of sustainable agricultural practices and climate change. I used the loan to purchase a multi-layered polycarbonate greenhouse cover, which offers better insulation and longer durability. This investment allows for more efficient crop protection and reduces the need for irrigation water. It’s not just about growing more—it's about growing smarter.
Filip Ilić, Petrovo Selo
Purpose of our investment
Agriculture accounts for approximately 8%* of Bosnia and Herzegovina’s GDP and around 18%* of its employment. The sector, however, is dominated by small farms that suffer from limited efficiency, lagging productivity and rural outmigration.
Farming in the region is also extremely vulnerable to climate change. Intensified droughts and floods are likely to significantly reduce crop yields and livestock productivity, making farms less profitable.
Our financing through Mikrofin is designed to give farmers better access to sustainable technologies and practices that will increase their resilience and help them adapt to these challenges.
*reference coming
Impact of our investment
Farmers can invest in new practices and technologies to protect soils, reduce water and improve efficiency. These investments will enhance their long-term productivity and help them adapt to the effects of climate change.
This partnership is part of EFSE’s broader sustainable agriculture strategy in the Western Balkans. We are supporting the region to take full advantage of its abundant natural resources and fertile soils.
Support beyond the investment
Our Advisory and Capacity Building team worked with 180 farmers through our new Academy for Sustainable Agriculture, which provides training on practical topics, including soil protection, irrigation and climate adaptation. This will ensure they can use the capital provided by Mikrofin to make their farms sustainable, resilient and productive.
The team also provided extensive, hands-on training to Mikrofin's staff, which they can pass onto the bank's end-investees. Subjects included how to reduce dependence on synthetic fertilizers and pesticides, and how to reduce waste and increase profits. We also worked with Mikrofin to improve agricultural loan products to help farmers make more effective sustainable investments.