$59 million in New Investments and
1,500 New Jobs created in Agriculture
Mikaela Meredith, USAID representative in Albania: “Looking to the future, undoubtedly, there are other people, businesses, and marketplaces that could benefit from the SmartCapital experience and build on what you’ve accomplished"
USAID and CBS Partnership
The United States Agency for International Development (USAID) and Creative Business Solutions (CBS) organized a virtual event to mark the conclusion of the 5-year SmartCapital Project. International and domestic implementing partners and direct beneficiaries of the project participated in this event.
Over the five years of its implementation, the project assisted 1,000 agribusinesses to secure $59 million in new investments and led to the opening of 1,500 new jobs.
The project enabled access to financing for farmers and agribusinesses, technical assistance in obtaining modern technologies, the use of digital platforms to facilitate crediting and identification of international markets, and the certification of Albanian products in line with international standards.
Mikaela Meredith, USAID representative in Albania spoke about the strong partnership and the unwavering support of the US government for Albania, while noting that the successful implementation of SmartCapital leaves behind a valuable legacy that will continue to support growth in the agricultural sector.
“Looking to the future, undoubtedly, there are other people, businesses, and marketplaces that could benefit from the SmartCapital experience and build on what you’ve accomplished. I understand that Creative Business Solutions is looking to introduce a private equity fund to the entire region. Good luck with this new chapter and your future endeavors!
“Hand in Hand” is a saying we often use in the United States in the context of partnership. USAID works with you because we view U.S. investments as catalysts that can be used to mobilize governments, international organizations, foundations, and businesses to help countries plan, finance and implement their own development goals. And over the years the SmartCapital project has come to emulate this approach”, said Meredith.
CBS Executive Director and President of the American Chamber of Commerce in Albania, Enio Jaço state that bringing the agriculture sector business community closer to European standards and strengthening trade relations between the U.S. and Albania, were major priorities for the SmartCapital project.
“Albania is making progress on its path to the European Union and is developing strong economic relations with the United States. This was the goal of the project 5 years ago. We wanted to bring Albanian farmers and agribusiness closer to European standards. We will continue our work with the sustainable platforms and services that have been created, and which are achievements of this project,” stated Jaço.
In this context, Jaço informed the participants on three key pillars on which support for the business community will continue: Consultancy Services will continue to be provided to support the business community with technical assistance. Secondly, Digital Platforms will bring financial institutions closer to the agribusiness community and enable the sale of agricultural produce in international markets through e-commerce, while on the other hand, the first Private Equity Fund in Albania will create opportunities for entrepreneurs to obtaining financing outside the banking sector.
Over the project implementation period, CBS, USAID’s partner, developed two digital platforms to facilitate crediting for farmers. LORES connects farmers to banks and facilitates the crediting of the agriculture sector, while Agro Trade is the first e-commerce platform in Albania enabling the export of Albanian products to international markets.
International banking sector expert and SmartCapital project implementation partner, Serge Guay stressed the importance of employing financial technology products for SME development in the country, as a necessity driven even more by the situation created by the Covid-19 global pandemic.
“Consultancy services and the digital platforms developed by CBS under the SmartCapital project proved their efficiency during the pandemic. Electronic loan processing allowed SMEs to easily obtain loans even during the lockdown, since it was not necessary to go to the bank and everything was done online. On the other hand, these digital platforms are an inspiration for the banking sector and I foresee beneficial and closer cooperation in the future between the business and the banking sector, helped along by relevant brokerage services” said Guay.
A video showcasing the SmartCapital project and its impact on the Albanian agriculture sector was also shown during the event.
The Albanian Equity Market Initiative
Gavin Ryan, World Bank expert on private equity funds and SmartCapital consultant was also a guest of the event.
Ryan discussed the importance of small and medium businesses in Albania and the further development and consolidation potential for these businesses through the introduction of alternative financing opportunities, such as the one provided by the private equity market.
“In addition to providing capital for the company, the benefits of private equity ownership in a SME, is that it brings SME closer to banks providing access to loans and establishing credibility, since the SME management level and quality have improved.
This is what a private equity fund brings to the table, and such fund does not exist in Albania. When considering countries like Croatia, Slovenia, Bulgaria, and Romania that have benefited from the establishment of such funds, it is clear that it is time for this to happen in Albania, as well.
I believe the conditions are very good. EU accession and the strong connection with Italy, the enhancement of relations with other countries in the world, such as the United States, and the role of the Albanian diaspora could have a very positive effect in the private equity market.
With regard to the establishment of the private equity fund in Albania, CBS can provide its knowledge of the SME market and the methods and reliability it has been able to develop with the broad business community. Its SME database and knowledge of the market will allow private equity investors to be more efficient in their work,” noted Ryan.
