Diaspora Investment Window
DIASPORA INVESTMENT WINDOW
The Diaspora Investment Window aims to support investments in private enterprises established by our compatriots living and working abroad.
EXPRESSION OF INTEREST FOR THE DIASPORA INVESTMENT WINDOW
PARTNER INTERMEDIARIES / BANKS
The financial institutions registered with the KCGF that have signed the guarantee agreement for the Diaspora Investment Window are:
- Banka Ekonomike Sh.A.
- National Commercial Bank (BKT Kosovo)
- Bank for Business Sh.A.
- NLB Bank Sh.A.
- ProCredit Bank Kosovo J.S.C.
- Raiffeisen Bank Kosovo J.S.C.
- TEB Bank Sh.A.
WHAT IS CONSIDERED A DIASPORA INVESTMENT AND WHAT ARE THE LEGAL REQUIREMENTS?
The diaspora investor must clearly express the intention to invest in Kosovo by:
- Starting a new business, or
- Supporting an existing business in Kosovo founded by the diaspora investor.
Businesses with more than 36 months of operation are not eligible for this window.
Ownership structure of newly created businesses by diaspora investors must be:
- Fully owned by the diaspora investor,
- In partnership with Kosovo residents (e.g. business partners, relatives, or friends residing in Kosovo), or
- Established jointly with a foreign (non-Kosovo resident) co-investor.
In all cases, the diaspora investor must own at least 30% of the business. A business plan must accompany the investment initiative.
COMPLIANCE WITH LEGAL REQUIREMENTS
Applicants must comply with all laws, regulations, and relevant guidelines governing investment and business activities in Kosovo. Additionally, applicants will be subject to AML/CFT due diligence by the financial institution and must not be under legal proceedings or listed on any international sanctions lists.
WHICH BUSINESSES QUALIFY?
- Privately owned MSMEs founded by diaspora investors.
- Registered with the Kosovo Business Registration Agency (KBRA). Visit KBRA
- Established within the past 36 months.
- Inclusive of all sectors except those excluded under KCGF’s environmental and social policy.
- Investor with a good credit history in the country of residence or Kosovo.
- Employs fewer than 250 employees.
Additional Info on Kosovar Origin of Business Owner
- Persons born and originally residing in Kosovo who have lived abroad for more than 3 years.
- Second-generation descendants of Kosovar parents with roots in Kosovo.
WHAT LOANS ARE ELIGIBLE UNDER THE DIASPORA INVESTMENT WINDOW?
- Minimum loan amount: EUR 3,000
- Maximum loan amount: EUR 3,000,000
- Minimum guarantee amount: EUR 1,500
- Maximum guarantee amount: EUR 2,000,000
- Loan term: Minimum 3 months, Maximum 84 months
- Loan purpose: Business investments (fixed assets, equipment, working capital)
TYPES OF LOANS
Loan; Credit line; Overdraft
WHAT ARE THE CHARACTERISTICS OF THE GUARANTEE?
Credit guarantee coverage of up to 80% of the loan principal, but no more than EUR 2,000,000. The percentage of guarantee coverage depends on the initial investment amount.
The investor must participate with a minimum of 20% of the initial investment.
| Guarantee Coverage (%) | Investor Participation / Bank Credit (%) |
|---|---|
| 60% | 20 / 80 |
| 70% | 25 / 75 |
| 80% | 30 / 70 |
WHAT IS THE APPLICATION AND DECISION-MAKING PROCESS?
- The potential borrower (MSME) does not apply for a guarantee directly but applies for a loan at one of the KCGF’s Registered Financial Institutions (RFI).
- The RFI conducts the standard credit analysis using its own risk assessment standards.
- If the business meets KCGF’s criteria, the RFI places the loan under KCGF’s credit guarantee scheme.
- After the loan is entered into KCGF’s Information Management System by the RFI, KCGF officially accepts the loan under its credit guarantee.
