The United States Agency for International Development (USAID), in collaboration with the financial institution NOA, has launched the “Footwear & Apparel Loan Program” (FALP). This initiative is designed to stimulate growth and enhance the competitiveness of Albania’s footwear and apparel industry, a vital sector of the country’s economy. Since 1998, NOA, a financial institution licensed by the Central Bank of Albania, has been providing financial solutions to small and medium-sized enterprises (SMEs), farmers, and households that face limited access to finance due to geographical, social, or administrative barriers. In partnership with USAID’s CATALYZE Engines of Growth (EoG) and the business association Pro-Export Albania, NOA has developed this innovative financial product to meet the needs of SMEs operating in the leather and textile industries.
This credit product is the first of its kind dedicated to the sector, aiming to inject €3.5 million into the industry through unsecured loans of up to €75,000. In addition to financing, companies will receive technical assistance to ensure maximum business growth.
Currently, 740 companies in Albania are active in the textile, clothing, leather, and footwear sectors. However, this number reflects a 6% decline compared to 2020, largely due to the ongoing effects of COVID-19 and recent price hikes caused by Russia’s invasion of Ukraine. According to a recent survey conducted by NOA, 66% of companies reported challenges in making timely payments. Businesses identified competitive costs as a primary obstacle to meeting loan obligations, particularly tax payments (51%), wages (45%), and supplier costs (27%). Over half of these companies expressed plans to expand into new markets, which could generate jobs and attract fresh investments. However, 72% indicated the need for additional financing to pursue their growth strategies. This new financial product is designed to address this funding gap.
During the launch event, USAID Albania Director Mischere Kawas remarked, “With the introduction of the ‘Footwear & Apparel Loan Program,’ I am thrilled to provide small businesses in this sector with greater opportunities—not only to grow but to continue innovating, thriving, expanding, and inspiring others.”
Herjola Spahiu, Executive Director of NOA, added, “The footwear and apparel industry is spearheading the promotion of ‘Made in Albania’ products across Western markets, from Italy and Spain to Canada and the U.S. It is crucial for this leading sector to have access to tailored financial products that will allow companies to enhance production capacity, elevate design standards, and improve working conditions for employees—many of whom are women.”
