Financing reaches Bosnia and Herzegovina’s small businesses

Micro and small enterprises are the backbone of Bosnia and Herzegovina’s economy. They account for 99 percent of all businesses, nearly half of employment and 44 percent of value added.

Yet many entrepreneurs still struggle to access the financing they need to invest, expand and create jobs. Women-owned businesses face additional barriers, including limited asset ownership, gender bias and weaker access to formal business networks.

The OPEC Fund’s loan to Mikrofin, the country’s leading microfinance institution, will help address these gaps by channeling new financing to underserved entrepreneurs across the country. The operation is part of a syndication led by the International Finance Corporation.

Founded in 1997, Mikrofin has grown into Bosnia and Herzegovina’s largest microfinance institution, with 109 branches and more than 400 employees. It provides financing to micro and small entrepreneurs across all sectors of the economy.

The agreement also marks the OPEC Fund’s first loan with Mikrofin, opening a new partnership focused on inclusive private sector growth, employment and economic opportunity.