Fighting Poverty in Kosovo

Poverty in Kosovo

Like in similar countries with a long history of conflict, poverty is relatively common in Kosovo. In fact, Kosovo is one of the poorest countries in Europe. About a quarter of the country’s population lives below the national poverty line.

The Impact of Unemployment and Poverty: Poverty in Kosovo is exacerbated by high unemployment, with one of the worst unemployment rates in the world. Unemployment levels for first-time job seekers and women in particular are considerably higher than the official rate. This has forced many Kosovars to migrate, while others have tried to create their own jobs in the informal economy. Compounding the problem of unemployment is a poor-quality education system, leaving many youths with little choice: either take a low-skilled, low-wage job or enter the informal sector.

How FINCA Kosovo is Fighting Poverty: When people in poverty have access to financial services and life-enhancing products, they can earn more, build their assets, create jobs and cushion themselves against external shocks. Since 2000, FINCA has been helping thousands of Kosovars improve their lives. FINCA offers financial services throughout the country. These services include individual loans, small group and solidarity loans, and loans for agricultural activity. About a quarter of FINCA’s clients in the country are women, most of whom are the primary source of income for their families. Empowering women continues to be a strong focus of FINCA in Kosovo. In addition to financial services, FINCA also delivers training on topics like agriculture and finance. Thanks to its client-friendly practices, FINCA Kosovo has also been awarded Smart Certification.

A lot remains to be done to alleviate poverty in Kosovo, given that half of adults in the country are excluded from financial services. Expanding financial inclusion is one of the main drivers of FINCA’s mission in the country.