The Millennium Challenge Account Kosovo had the pleasure of leading an informative session focused on spurring private sector led energy investments in Kosovo as part of the continued launch of the Kosovo Compact. In a significant step towards sustainability of energy sector in Kosovo, the Millenium Challenge Account Kosovo (MCA Kosovo) and the Millenium Challenge Corporation (MCC) hosted an outreach session, aiming to equip Kosovo businesses with the necessary resources and knowledge on access to finance for green energy projects.

The American Catalyst Facility for Development (ACFD) Project is one of three projects under the Millennium Challenge Corporation- Kosovo Compact between the Governments of Kosovo and the United States. ACFD is a blended finance platform to optimize collaboration between MCA Kosovo, MCC, and the US Development Finance Corporation (DFC) in support of coordinated, strategic investments for Kosovo. This initiative aims to catalyze private sector investments in Kosovo's green economy and energy transition.

The Millennium Challenge Corporation (MCC) and United States International Development Finance Corporation (DFC) have developed the American Catalyst Facility for Development (ACFD) as a new blended finance mechanism. Implemented through MCA-Kosovo, this This initiative aims to catalyze private sector investments in Kosovo's green economy and energy transition.

The session provided insights about the technical assistance businesses can receive and how they can leverage the initial $2 million funding from MCA Kosovo to secure investment capital from the DFC. These mechanisms include loan guarantees, investment grants, structured finance, and currency hedging. ACFD can fund premiums for first loss guarantees, interest rate buy-downs, tenor extensions, letters of credit, viability gap funding, credit enhancements, or provide technical assistance.

These instruments are designed to reduce technical and financial risks, making it more attractive for private investors to engage in renewable energy projects and other green initiatives, and helping DFC provide the necessary financing.

As a development financial institution, the DFC mobilizes private sector capital to finance solutions to the most critical challenges facing the developing world today. Its finance tools may take the form of direct equity, debt financing, investment guarantees, or technical assistance and may range from $1 million to $30 million or more.