IFC Boosts Finance for Women Entrepreneurs, Climate Investments in Bosnia and Herzegovina

To help close financing gaps for women entrepreneurs and accelerate climate-related investments, IFC is providing a EUR 20 million loan to Mikrofin d.o.o. Banja Luka (Mikrofin), the leading microfinance institution in Bosnia and Herzegovina. The funding aims to improve access to credit for micro and small enterprises (MSEs), with at least 50 percent allocated to women-owned businesses and at least 25 percent to eligible green projects.

Access to finance remains a persistent constraint in Bosnia and Herzegovina, where domestic credit to the private sector stood at just 43.5 percent of GDP in 2023—well below the EU average of 77.6 percent. Although MSEs account for 99 percent of all businesses, 47 percent of employment, and 44 percent of value added, they continue to struggle with financing, hindering their capacity to grow and create jobs.