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Supporting Albanian small businesses with NOA
Project
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Signature date
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Location
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Albania
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Financing tool
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Financing amount (Euro)
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5013000
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Financing details
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EUR 5m loan and EUR 13,000 for technical assistance
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Customer
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NOA S.Ha.
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Type of customer
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Microfinance
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Country of headquarters
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Albania
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Project number
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PAL1001
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Environmental and social ranking
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IF-C
This information is given at the time of signature, without prejudice to any developments in the operation/project.
Proparco has allocated a EUR 5m loan to the microfinance institution NOA to support small, family-run and rural businesses in Albania. It is Proparco’s first financing operation in the country.
Client presentation
Founded in 1998 by the American agency USAID, NOA Sh.A (NOA) is one of the main microfinance institutions in Albania. NOA specifically supports small businesses, family-run enterprises and farmers and wants to develop its activity in Albania’s rural regions. The institution already has 12,300 borrowers, 31% are women, with a portfolio of EUR 57m. It deploys its services via a network of 26 branches.
Project description
Proparco is supporting NOA’s activity and development by allocating it a EUR 5m senior loan to develop its loan portfolio. Through this financing entirely dedicated to Albanian small businesses, NOA is contributing to the financial inclusion of local entrepreneurs.
The client has received technical assistance through an expert directly recruited by Proparco for capacity building on the issue of client protection (and to obtain an official certification) for an amount equivalent to almost EUR 13,000.
Project impact
The main expected economic and social impacts include: support for 330 jobs, new or improved access to a microcredit for 450 beneficiaries and support for 165 MSMEs. In addition, with 80% of women in NOA’s management team and 40% on the Board of Directors, 30% of the project qualifies under the 2X Challenge (Leadership criterion).
The project will thereby contribute to the achievement of SDG 1 (“No poverty”), SDG 5 (“Gender equality”), SDG 8 (“Decent work and economic growth”) and SDG 10 (“Reduced inequalities”).