Serbia

Serbia plays a decisive role for political stability in south-east Europe and is one of the most important partner countries for the German development cooperation in the region. Germany is primarily providing support for Serbia on its path towards membership in the European Union.

On behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ), KfW Development Bank is supporting Serbia in achieving the goals agreed with the EU in the following sectors:

• climate and energy, Just Transition
• sustainable urban development (mobility, circular economy and waste management)
• sustainable economic development, training and employment

Cooperation with Serbia in the energy sector includes a district heating programme. When it comes to electricity generation, KfW focuses primarily on hydropower and wind power. New projects for the energetic refurbishment of public buildings are also being implemented, including the region’s largest hospital in Belgrade. In addition, KfW is financing environmental credit lines which enable many MSMEs, private households and communities to invest in energy efficiency and renewable energies through the Serbian banking sector. Today the promotion of the energy sector is the most important pillar of the German development cooperation in Serbia with a current commitment volume of over EUR 1.0 billion.

KfW is supporting the Serbian government in particular in implementing relevant EU directives in the water, waste water and waste management sectors. Urban development also plays a special role with regard to achieving climate goals and systematic adjustment to climate change. Within the context of these activities, around 1.6 million inhabitants in over 30 towns have directly or indirectly benefited from the financing of the supply infrastructure, efficient and environmentally sound water and waste water systems as well as integrated and climate-friendly waste management.

By supporting the financial sector, KfW contributes to the sustainable economic development of Serbia, creating and securing jobs. Funds from the BMZ, the EU and KfW’s own funds are combined to expand financial services and make them more accessible for MSMEs. In this case, the focus is on rural development, energy efficiency/ renewable energy sources and, in future, also on the promotion of start-ups.

Accompanying measures are used to impart the necessary know-how for the successful use of the financial products and at the same time strengthen the capacities of the respective ministries. The aim is to ensure a sustainable source of credit for MSMEs by providing loan guarantees for commercial banks. In addition, KfW is investing in several funds to promote MSMEs and energy efficiency / renewable energies in Serbia.

Project information – Energy