REDI Economic Development S.A. and Patria Credit IFN sign an agreement for the financing and inclusion of Roma entrepreneurs

Bucharest, March 14, 2023 – REDI ECONOMIC DEVELOPMENT SA and Patria Credit IFN S.A. announce the signing of a unique local partnership for the financing and inclusion of Roma entrepreneurs, particularly those involved in agriculture, from small rural communities in the country. Through this partnership, businesses managed by Roma individuals and local businesses employing Roma workers will be financed under the dedicated program called “Microfinanțarea nu are etnie” (Microfinance has no ethnicity).

According to the study “Romii în 10 țări europene” (Roma in 10 European countries) conducted by the European Union Agency for Fundamental Rights (FRA) in 2021:

• Only two out of five Roma individuals in Romania between the ages of 20 and 64 (41%) are employed or engaged in paid work, compared to the national average of 71%.
• Employment is much less common among Roma women. In 2021, only 23% of Roma women in Romania between the ages of 20 and 64 are employed, compared to 56% of Roma men in the same age group.
• Every second young Roma person in our country between the ages of 16 and 24 (59%) is either unemployed or not in education or training. The national average is 15% (in 2020).
• One in four Roma individuals in Romania aged 16 and above (23%) reported experiencing discrimination in job search during the 12 months prior to the study. This percentage is one of the lowest in the European Union, where the average is 33%, with a maximum of 81% in Portugal. On average, the number of Roma individuals in Romania facing discrimination in job search has doubled compared to 2016 (from 10%).

Regarding local Roma entrepreneurs, there are no official studies or statistics available. Representatives from REDI ECONOMIC DEVELOPMENT SA state that “there is a diverse community of Roma entrepreneurs operating in a variety of fields, from agricultural farms to retail and services. Many of them face difficulties in accessing the necessary resources and support to develop their businesses.”

Regarding the signed partnership, Lucian Dumbrăvieanu, a member of the Board of Directors of REDI, stated, “We are delighted that through this partnership, we will support the development of small-scale farmers and entrepreneurs from Roma communities in Romania by providing financing and financial counseling.”

According to the aforementioned study, there is a significant concern at the European Union level regarding reducing the employment gap for Roma individuals by at least half, and member states must ensure that at least 60% of Roma individuals will have paid employment by 2030, compared to a mere 43% in 2021. Additionally, the gender gap among Roma individuals must also be reduced by at least half to ensure that at least 45% of Roma women will have paid employment by 2030, compared to only 28% in 2021.

By increasing these percentages, it will implicitly ensure better social and economic inclusion, with financial inclusion of the Roma population and entrepreneurs playing a major role in this growth.

“In Patria Credit, financial, economic, and social inclusion of members of rural communities takes into account our desire to stimulate the local economy, regardless of the ethnicity of the entrepreneurs. We have been present in rural areas for many years, financing small and very small farms, including those of Roma communities, and the partnership with REDI supports our actions and Patria’s mission to contribute to the development and prosperity of rural communities here,” mentioned Raluca Andreica, CEO of Patria Credit.

The credits accessible to agricultural producers and small Roma entrepreneurs through the Patria Credit program can amount up to 120,000 lei. They are granted without real guarantees, with a repayment period of up to 5 years, flexible repayment options in equal, seasonal, or customized installments, and the possibility to use the funds for investments, financing current activities, and mixed-purpose projects.

Furthermore, Patria Credit will hire a Roma representative who will facilitate and develop the collaboration with Roma entrepreneurs or those employing Roma individuals.

About REDI ECONOMIC DEVELOPMENT SA:
The mission of REDI ECONOMIC DEVELOPMENT SA is to improve access to financing for Roma entrepreneurs and entrepreneurs active in Roma communities in Romania, Bulgaria, North Macedonia, and Serbia. Established in Luxembourg in 2019, REDI ECONOMIC DEVELOPMENT SA is the first investment vehicle with a specific focus on Roma entrepreneurs and an investment capacity of 5 million euros for providing loans and risk-sharing with financial intermediaries.

About Patria Credit IFN:
Patria Credit IFN SA is a non-banking financial institution (NFI) that supports the efforts of small farmers and entrepreneurs, as well as their positive impact on rural communities. Specialized in financing farmers, Patria Credit is a member of the European Microfinance Network (EMN) and Microfinance Centre (MFC) and the first non-banking financial institution dedicated to microfinance in Romania, with nearly 20 years of experience and over 18,000 funded clients. The history of Patria Credit began in 1996, initially as a program of the World Vision organization, later evolving into a foundation and then an NFI. Currently, the activities of Patria Credit IFN are recognized by the European Code of Good Conduct initiated by the Directorate-General for Employment, Social Affairs, and Inclusion of the European Commission, for the quality and impact of microfinance activities carried out in Romania. As part of the Patria Bank Group, Patria Credit IFN is involved in projects supporting agriculture, rural development, and supporting the transition of small farmers towards sustainable agriculture (Smart Farm Program).