EBRD Agribusiness Activities in Serbia Joe E. Colombano European Bank for Reconstruction and Development Rome, 1 March 2005
EBRD Agribusiness Activities in Serbia Transition challenges in the sector EBRD’s objectives Strategic priorities in Serbia Recent projects
Transition challenges in the sector Slow pace of reforms Marginal direct investment targeted at primary agriculture Incomplete restructuring of former State owned food processing companies Enormous financing needs, both for seasonal working capital and for long-term investments
Key Transition Objectives Promote market expansion (backward linkages and forward linkages) Increase competition and stimulate efficiency Allow the transfer and dispersion of skills Demonstrate ways of successful restructuring Demonstrate new ways and instruments to finance activities in the agribusiness SME sector Set new standards of corporate governance Develop frameworks for markets
Strategic priorities in Serbia Finance expansion of food processing companies Provide long-term financing to strategic investors in retail market Provide commodity-based financing to well-performing local agribusiness companies (WHRs Programme) Collaborate with local banks to promote lending to agribusiness SMEs
Selected investments in Serbia and Montenegro (fresh&co.) EUR 12.5 m equity investment One of the prominent local companies Works extensively with local farmers Procures large quantities of fruits over 20k t of fruits in 2004 Ever growing demand for quality fruits
Selected investments in Serbia and Montenegro (Frikom) EUR 13.1m long-term debt facility One of the good examples of regional expansion of key local players Works with both milk producers and vegetable growers Supports local farmers - increased demand of quality inputs including vegetables and milk
Selected Investments in Serbia and Montenegro (Grand Coffee) Local entrepreneur with successful track record Serbia and Montenegro's largest coffee company €7 million debt to finance domestic and regional expansion (Bosnia)
EBRD portfolio in Serbia Total €585m (August 2004)