The European Commission, Germany’s Federal Ministry for Economic Cooperation and Development and KfW Development Bank have launched a new €80 million Social Entrepreneurship Fund to support sustainable jobs in the southern Mediterranean.
The fund is part of the EU’s Pact for the Mediterranean and is intended to back social enterprises — businesses that pursue social goals alongside financial sustainability — in countries across the region, the Commission announced on Wednesday.
A €45 million “equity” component, meaning investment in return for ownership stakes, becomes operational on Tuesday.
The remaining €35 million is a “debt” fund, meaning lending, alongside a technical assistance facility that provides expert support.
The initiative will target small and medium-sized enterprises and start-ups working in areas including education, climate-related projects and financial inclusion.
Focus on access to finance
Small and medium-sized enterprises provide more than 85% of employment in the southern Mediterranean but often struggle to access financing and investment, Commissioner for the Mediterranean Dubravka Šuica said.
“The Social Entrepreneurship Fund will strengthen entrepreneurial ecosystems, while fostering long-term prosperity for a more resilient and equitable future in our region,” Šuica added.
