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AFIN – Romanian Alternative FINancing Institution Dedicated to Social Enterprises

Funded by: Comisia Europeană

Action: EaSI programme – Actions to boost the development of finance markets for social enterprises

Reference: VP/2019/015/0035

Total value: 196.664 Euro   

Lead partner: Fundația ”Alături de Voi” România (ADV Romania)

Partners:

Patria Credit IFN SA

FEBEA - the European Federation of Ethical and Alternative Banks and Financiers

Prezentare proiect:

AFIN will be the first non-bank financial institution in Romania dedicated exclusively to the social economy sector, created on the initiative of social entrepreneurs in Romania. It is a key mechanism that will put in place an integrated system of specialized assistance for the social economy in Romania.

The project brings together the expertise of three national and international partners in the field of social economy and investments that support the sustainable development of communities - “Alaturi de Voi” Romania Foundation (ADV Romania), Patria Credit IFN and the European Federation of Ethical and Alternative Banks and Financiers (FEBEA). In 18 months of project implementation, the three partners will lay the foundations of the first non-banking financial institution specialized in supporting investments with social impact and will start the first credit agreements.

“The idea of ​​this non-bank financial institution comes from the challenges we encountered as a social enterprise regarding financing sources for business development. Currently, Romania does not have any specialized tools for financing social enterprises and this affects their competitiveness and sustainability in the market. We decided it was time to get involved and create such a tool and transfer our expertise of over 13 years in the social economy. We cannot do this alone but only together with experienced banking partners, people and companies with business experience, and social enterprises eager to capitalize on this tool. Wonderful things can be achieved through collaboration and we greatly appreciate that over 30 private institutions have announced their intention to contribute to the establishment and development of this financing instrument. We hope that in a few years, we will expand the area of ​​intervention of the non-bank financial institution in the Republic of Moldova and Ukraine, where we are already working on the development of social entrepreneurship," Angela Achiței, President of ADV Romania highlighted.

The aim of the project:

AFIN has the mission to create a platform for investments with social impact. The aim of the project is to facilitate access to finance for social enterprises in Romania that have passed the start-up phase and need capital resources to progress.

Specific objectives:

  1. To assess financing needs of social enterprises from Romania and the potential to invest of different social actors in order to create a private financing instrument for the sector.
  2. To design and launch financial instruments for social enterprises through attracting potential investors and actors interested in developing financing markets for social enterprises.
  3. To establish a consortium of social actors committed to act for a future non-financial instrument for the development of social entrepreneurship in Romania.
  4. To develop the technical capacity of the consortium created for the establishment of the nonbanking fiscal institution and of other relevant actors from the community activating in the field of social entrepreneurship.
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