The Council of Europe Development Bank (CEB) signed a EUR 5 million loan agreement with the REDI Fund, an investment vehicle established by the Roma Entrepreneurship Development Initiative. The money will support Roma-owned businesses and small companies employing Roma workers in four countries.
The agreement was signed in Paris on November 9 by CEB vice governor Tomáš Boček and REDI Fund director Petrică Dulgheru, a Romanian chemist and founder of the REDI network.
Backed by a guarantee from the CEB’s Social Impact Account, the loan is expected to generate more than EUR 8 million in microcredit between 2026 and 2028. The program aims to support over 1,000 businesses and create or preserve more than 2,000 jobs.
“Financial inclusion is essential to social cohesion,” Tomáš Boček said. “Through our partnership with the REDI Fund, we can help Roma entrepreneurs access the finance they need to build and grow their businesses.”
The REDI Fund will channel the money to local microfinance institutions in Romania, Moldova, Albania, and Kosovo. These institutions will then issue loans for equipment, productive assets, and working capital.
At least 40% of the CEB financing will be allocated to Roma-owned businesses. The rest will support micro and small enterprises directly connected to Roma communities, including companies employing Roma staff.
The average loan is expected to be approximately EUR 7,000, typically financing small farms, family-run retail businesses, crafts, and services. REDI also aims to direct at least 30% of the loans to women entrepreneurs.
“Roma entrepreneurs have never lacked ideas or the will to work, but too often lenders saw stereotypes instead of a business plan,” Petrică Dulgheru said. “Our borrowers have shown that they repay like any other client.”
“Financing Roma businesses is an investment that pays back in jobs, taxes, and stronger local economies,” he added.
The funding will be accompanied by business development services, financial literacy training, and assistance with loan applications. REDI also trains Roma loan officers to work within partner banks and microfinance institutions.
Roma are Europe’s largest ethnic minority, estimated at between 10 million and 12 million people. According to the CEB, they are twice as likely as other groups to live in poverty and continue to face significant barriers to formal financial services.
The new agreement is the CEB’s second loan to the REDI Fund. A EUR 3 million program approved in 2021 financed microfinance institutions in Romania and North Macedonia.
Together with REDI’s wider portfolio, the earlier program has supported approximately 460 borrowers, including 300 Roma entrepreneurs. Women-led businesses accounted for 60% of that portfolio.
Founded in Bucharest in 2016, REDI works across Central and Eastern Europe, the Balkans, and Turkey. In 2019, it established the Luxembourg-based REDI Fund, described as Europe’s first investment vehicle dedicated to Roma entrepreneurs.
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