Strengthening MSME finance in Kosovo*: A baseline study of a Sida guarantee to KCGF to support women-led enterprises, export-oriented businesses and green investments

This baseline study assesses the initial conditions and early impacts of Sida's re-guarantee facility, implemented through the Kosovo Credit Guarantee Fund (KCGF) to expand access to finance for micro, small and medium enterprises in Kosovo. Targeting underserved businesses through three thematic windows — Women in Business, Export-Oriented Enterprises, and Green Investments — the facility has shown promising results, with 41% of borrowers accessing formal credit for the first time and early signs of contribution to job creation. The study also identifies key challenges faced by financial institutions and borrowers, and offers recommendations to strengthen monitoring, advance gender-responsive lending and maximize the facility's impact on inclusive economic development in Kosovo.

*All references to Kosovo should be understood in the context of United Nations Security Council Resolution 1244 (1999).