DIASPORA INVESTMENT WINDOW
GUARANTEE FOR DIASPORA INVESTMENTS!
The Diaspora Investment Window is a KCGF guarantee scheme designed to mobilise diaspora capital and expertise for investment in Kosovo. Established in July 2024 and backed by capital provided by the Government of the Republic of Kosovo, it aims to facilitate access to finance for diaspora investors establishing or developing businesses in the country.
For many diaspora investors, turning their capital, knowledge and professional experience into a concrete investment in Kosovo requires both their own capital and access to finance. Through its credit guarantee, KCGF shares part of the risk with partner financial institutions, creating more opportunities to establish, expand and finance businesses linked to the diaspora.
The Diaspora Investment Window therefore aims to mobilise diaspora investment, support new and existing businesses, encourage the transfer of capital, knowledge and professional experience, and contribute to job creation and economic development.
WHO CAN BENEFIT?
The Diaspora Investment Window is intended for MSMEs linked to diaspora investors who invest in establishing or developing businesses in Kosovo.
| CRITERIA | REQUIREMENT |
|---|---|
| Business status | Micro, small or medium enterprise |
| Registration | Business registered with the Kosovo Business Registration Agency (KBRA) |
| Ownership | Privately owned |
| Number of employees | Less than 250 employees |
| Business operating history | Business established by diaspora investors with no more than 36 months of operation |
| Ownership share | The diaspora investor holds an ownership share of at least 30% |
| Investor profile | Must provide documentary evidence of origin from Kosovo and residence outside Kosovo |
| Financial requirements | A sound credit history and a business plan for the investment |
GUARANTEE FEATURES
The Diaspora Investment Window offers a flexible financing structure and different levels of guarantee coverage linked to the investor's own contribution.
| FEATURE | TERMS |
|---|---|
| Guarantee coverage | Up to 80% |
| Maximum loan amount | EUR 3,000,000 |
| Maximum guarantee amount | EUR 2,000,000 |
| Maximum loan maturity | 84 months |
| Financing purposes | Capital investments, equipment and working capital |
| Type of financing | Loans, credit lines and overdrafts |
GUARANTEE COVERAGE
| GUARANTEE COVERAGE | INVESTOR CONTRIBUTION |
|---|---|
| 60% | 20% own contribution |
| 70% | 25% own contribution |
| 80% | 30% own contribution |
ADDED VALUE
The Diaspora Investment Window creates value by connecting diaspora capital and expertise withfinancing opportunities in Kosovo, while enabling financial institutions to support more investmentprojects by sharing risk with KCGF.
| FOR MSMES AND DIASPORA INVESTORS | FOR FINANCIAL INSTITUTIONS |
|---|---|
| Improved access to finance | Reduced credit risk |
| Reduced collateral requirements | Reduced cost of risk |
| More favourable lending terms | Opportunities to expand the loan portfolio |
| Support for business establishment and expansion | Expanded financing for diaspora investments |
| Opportunities for development and market positioning | Support for mobilising diaspora capital |
The Diaspora Investment Window connects the diaspora's capital, knowledge and expertise with investment opportunities in Kosovo, creating opportunities for business establishment anddevelopment.
HOW THE GUARANTEE SCHEME WORKS
KCGF has no direct contact with borrowers.
Communication with the borrower takes place through the Registered Financial Institution.
Responsibilities and monitoring
KCGF operates on the premise that the RFI will conduct an appropriate credit risk assessment and verify the eligibility of the borrower and the loan.To monitor and oversee the performance of each participating RFI, KCGF has developed two monitoring mechanisms: