70 Million Euros for the Development of Armenia's Economy

With the support of the European Union and the European Bank for Reconstruction and Development, a private equity investment fund is being launched in Armenia. The official ceremony was attended by Prime Minister Nikol Pashinyan, Deputy Prime Minister Tigran Avinyan, Deputy Director-General for Neighborhood and Enlargement Negotiations at the European Commission, Katarina Maternova, among others.

“The European Union is a key partner in Armenia’s economic development and prosperity,” Maternova stated, according to ArmPress. “The EU is proud to introduce a new innovative tool aimed at unlocking the full potential of SMEs in Armenia, creating new jobs, and delivering tangible benefits to the people. We are confident that the EU-Armenia SME private equity fund will contribute to the growth of Armenia’s economy and enhance its competitiveness, attract foreign direct investment, and foster further development of innovations, thanks to Armenia's potential,” Ms. Maternova emphasized.

Mateo Patronen, the EBRD’s Director for Eastern Europe and the Caucasus, noted that Armenia has a vibrant entrepreneurial history and enormous potential. “We are pleased to support the launch of this private equity fund, which will encourage the diversification of financing opportunities for SMEs. This project will also contribute to improving the investment climate and the overall diversification of the economy. We are grateful to our long-standing partner, the EU, for significantly supporting this project,” said Mateo Patronen.

The EU and the EBRD are providing 16 million euros to support the launch of the “Amber Capital EU-Armenia SME Private Equity Fund.” The fund will engage a total of 70 million euros to invest in Armenia’s small and medium-sized enterprises.

The fund will be managed by Amber Capital, an international investment company with a representative office in Armenia and a team of experts aimed at creating a diversified investment portfolio in renewable energy, agriculture, manufacturing, tourism, information technology, and logistics.

The objective of the fund is to enhance the competitiveness of beneficiary SMEs through private equity investments, including improving corporate governance and transparency, thereby promoting the internationalization of SMEs. The initiative will also include providing capacity-building consulting for local enterprises within the framework of the EBRD's “Consultancy for Small Businesses” program to develop their investment readiness and stimulate the competitiveness of SMEs.