The EFSE is more than just a fund: its public-private partnership (PPP) structure has made the EFSE an international role model for intelligent and innovative development policy in the 21st century. The PPP approach enables the EFSE to mobilise funding from private institutional investors to top up international public donor funding for development finance.

In addition, it provides a platform for the coordination of donor activities in its regions. This pooling of resources multiplies the impact of budget funds towards a common goal: to promote responsible financial sector development in the EFSE’s target countries and ensure MSEs and low-income households have sustainable access to financial services.

Finally, the EFSE operates as a market enabler, facilitator and risk taker as well as an innovator and incubator for new financial products benefiting the target group.


he EFSE Development Facility (EFSE DF) deploys effective, targeted and innovative projects to maximise the impact and outreach of the Fund’s development finance mandate in Southeast Europe and the Caucasus region to support the final target groups i.e. micro and small enterprises and low-income private households.

The EFSE DF does this in several ways:

  • Addressing capacity building needs of the Fund’s partner financial institutions in the region.
  • Supporting a strong and stable financial sector by strengthening sector institutions, increasing financial literacy and conducting research.
  • Developing and supporting innovation for the Fund, for example on fintech and its potential to deliver responsible finance via the partner institutions to the Fund’s end clients.