NOA, a ‘Balkans’ microfinance

Albania hosted the Western Balkans Summit on October 16th, 2023. Part of the Berlin Process, it was the first time the conference was held outside the EU border. A clear signal of the regional dimension Tirana has started to play in recent years, the event also symbolizes the increased attention paid to the EU integration of the region, but also to the internal cooperation among Western Balkans countries themselves.

81% of all exports of the region reached EU markets in 2021. An important level is also reflected on the import side with 59.5% of all goods originating from the EU. Internal trade exchanges between WB countries have also increased. While Montenegro reflects a record of 40% of its exports to its neighboring countries, Albania ranks second at 20%, while Serbia and North Macedonia arrive at 15%.

The EU-WB financial integration is also high with 61% of the investment stock in the region being of EU origin. Serbia is the sole exception with EU27 investments competing hand to hand with China, representing each an annual investment flow of appx. 1.5 billion euros and the end of 2022. In Albania, the largest foreign investors are from the Netherlands, Italy and Germany. In North Macedonia, FDI originating from EU27 rank first followed by UK and Turkey. In Kosovo, Germany, Switzerland the US are the top investors in 2022. Montenegro is also another exception with Russians investments standing out with 20% of all FDI stock.

NOA’s decision to expand its activity in neighboring Kosovo starting June 1st, 2023 appears to follow these recent market developments. It reflects a simultaneous increase of EU and regional financial integration, further enhancing consumer and market standards. Celebrating 25 years since disbursing its first loans, NOA ambitions indeed to become a true regional microfinance reference offering European level solutions to its client base whenever they are located. In this regard, with similar socio-economic indicators, Albania and Kosovo represent for NOA an undeniable opportunity to increase its impact driven finance while fostering exchange of best practices, economies of scale and business replicability potentials.

It is in this specific regional context that NOA similarly supported the Balkans Economic Forum, organized in Tirana on November 17th, 2023. With the objective to nourish the making of a real economic regional thinking, NOA is committed into promoting business and academic exchanges that support a full economic integration of the Balkans region into the EU through professional dialogue, international expertise and regional business cooperation.

NOA’s recent expansion in Kosovo and its involvement with BEF are a proof of the new maturity level of the Balkans’ microfinance. A model that continues to serve job creation, entrepreneurship, trade development and responsible businesses that support a lasting and green economy for all the Western Balkans region. This is what NOA is committed to, and this is what best sums up its activities during 2023. A successful year mirrored by its two digits growth and the ambition into reaching new heights, in Albania and regionally.