EBRD and EU Propel Serbian SMEs Towards Eco-Friendly Practices

Mirko Stajn, the Development Project Manager at Agrosava, a leading Serbian agribusiness firm, encapsulated the company's ethos succinctly: “What we borrow from nature, we ensure to return.” This philosophy underpins Agrosava's commitment to environmental sustainability, illustrated by their latest investment in a rooftop solar power facility, backed financially by the European Bank for Reconstruction and Development (EBRD) and the European Union (EU).

Mirko highlights the dual benefits of these eco-investments, noting both environmental and financial gains. “Utilising less energy not only benefits the environment but also bolsters our financial health,” he states.

For Agrosava, headquartered in Belgrade and specializing in plant protection, corn seed production, and more recently, pet food, the green transition has been a long-standing focus. Their previous ventures include biowaste-fueled heat and hot water systems and plastic recycling for packaging materials.

Mirko adds, “With the shift in modern business paradigms towards sustainability, we invested in solar power, aiming to reduce our carbon footprint and waste. Our goal is a zero-waste operation, as waste equates to financial loss.”

The solar project received funding through the EBRD’s SME Competitiveness Programme, complemented by a 15% cashback incentive and technical assistance funds from the EU. “The grant and technical guidance were pivotal in realising this project. Expert advice helped us choose appropriate technology and strategies,” explains Mirko.

The solar installation now significantly offsets the company's energy needs, with a return on investment anticipated within five to six years.

Agrosava, a Family Business with Ambition

From its humble beginnings over three decades ago as a small pesticide shop, Agrosava has grown into a prominent plant protection product manufacturer in south-eastern Europe, collaborating with major industry players and exporting globally.

Petar Mirkovic, CEO of Agrosava, reflects, “Our growth can be attributed to our efficient use and recycling of resources, and substantial reinvestment in development, allocating 30-40% of our profit to this area.”

EBRD prioritizes supporting companies like Agrosava in Serbia through direct financing and collaborative loans with commercial banks, aiding local small businesses in their expansion efforts.

Agrosava also benefited from the EBRD’s Advice for Small Businesses programme, gaining access to business expertise that helped enhance and digitize their operational processes.

Aleksandra Vukosavljevic, EBRD Director for Financial Institutions in Western Balkans and Eastern Europe, emphasizes the importance of structured financial and advisory aid in spurring local companies’ growth and competitiveness, underscoring the ongoing collaboration with the EU and local banks in supporting Serbian enterprises.

The EU’s commitment to fostering local SMEs in Serbia remains steadfast, with Martin Klaucke, Head of the Operations Section at the EU Delegation to Serbia, noting, “SMEs are the backbone of the Western Balkan economies. Through our continued alliance with the ERBD, we aim to reinforce SME resilience and promote sustainable growth. EU-funded initiatives in Serbia are instrumental in generating employment, advancing economic and technological progress, and enhancing the legislative framework, all contributing to an evolving economic environment.