The Business Development Fund presented its institutional transformation model to BMZ and KfW representatives

The Business Development Fund (BDF) presented the results and further prospects of its institutional transformation into the National Development Institution (NDI) during a meeting with representatives of the German Federal Ministry for Economic Cooperation and Development (BMZ) and the German development bank KfW, held on 25 November 2025 in Kyiv.

As noted by participants of the meeting, the establishment of a financial institution with special NDI status, based on the BDF and in accordance with the relevant law developed with the involvement of the Ministry of Finance of Ukraine, the BDF, KfW, and Deloitte consultants, and agreed with the World Bank and the EU, is expected to consolidate the efforts of the Ukrainian and German governments and international partners to build a modern system of financial support for entrepreneurship.

“Institutional strengthening of the Fund opens new opportunities for attracting investment and scaling up business support,” emphasized Andriy Hapon, Chairman of the Management Board of the BDF.

In particular, the transformation of the BDF will enable the expansion of business support programmes and the launch of new financing initiatives, including in the areas of energy efficiency and renewable energy.

«The German-Ukrainian financial cooperation, and particulatly cooperation with the Business Development Fund is aimed at strengthening the opportunities for businesses and communities in war conditions, but also further in the restoration and modernization of Ukraine. We see Ukraine’s significant potential for scaling-up investments in sustainable solutions, especially in energy resilience and energy efficiency. During the visit to the SME that benefitted from the KfW-funded support program of the BDF,
I’ve seen the committment of the company’s team and the completed energy resiliense solution – solar panels with batteries. I am also happy to see the great progress in institutional development of the BDF, achieved with the technical assistance contribution from BMZ via KfW. To help Ukraine’s National Development Institution to be built on the basis of the BDF, I’m pleased to announce that the German Government has committed additional EUR 19 million to be channelled to Ukrenergo via KfW. Germany firmly stands with Ukraine as long as necessary», said Lisbeth Müller-Hofstede, Deputy Head of Task Force Ukraine, Federal Ministry for Economic Cooperation and Development (BMZ).

In the context of deepening German-Ukrainian financial cooperation and expanding instruments to support Ukrainian businesses and communities, Lorenz Hessner, Head of the Representative Office of the German state development bank KfW in Ukraine, emphasized the importance of a systematic and long-term approach to developing sustainable infrastructure and institutional capacity.

Head of KfW Representative Office in Ukraine Lorenz Gessner : «The focus of KfW-BDF cooperation is on modern mechanisms for sustainable financing of SMEs, communities, utilities and green energy initiatives, in particular, concessional loans, risk sharing (guarantees), grants for co-financing investments etc. To implement such mechanisms, this year the German Government through KfW already allocated EUR 40.5 million to the SME Resilience Facility. This allows the Fund to introduce a new program to support Ukrainian businesses through partner banks in 2026. I’m happy that BMZ is ready to scale-up this program with an additional amount. What is also very important for us is to continue supporting the National Development Institution’s capacity building and organizational evolution, especially as the Ukrainian side cites KfW as an example. That’s a great honor and responsibility, and we will continue and intensify our cooperation».

The key objective of the new projects will be to expand access for small and medium-sized enterprises (SMEs) to concessional lending and other financing instruments.

“Expanding SME access to long-term and affordable financing is critical for economic recovery and the development of a new investment ecosystem in Ukraine,” said Valeriy Mayboroda, First Deputy Chairman of the Management Board of the Business Development Fund. “We expect that the planned programs will enable businesses to more quickly implement energy-efficient technologies, enhance their resilience, and create added value in the regions. Together with international partners, we are laying the foundation for sustainable economic growth.”

During their visit to Kyiv, the German delegation also visited GOODEVAS, a company that installed solar panels and achieved full energy independence through participation in the SME financing component of the “Add Energy to Your Business” program in Eastern Europe. The program is implemented with the support of KfW, the European Union, and the EU4Business initiative in cooperation with the Business Development Fund.

GOODEVAS specializes in manufacturing Montessori-style furniture for children aged 1 to 7 and has long focused primarily on exports, selling its products via international marketplaces such as Amazon, Etsy, and Shopify to customers in the USA, Canada, the EU, and the UK. In 2025, the company intensified its activities in the domestic Ukrainian market and expanded its range of products for children’s development and physical activity.

Background: The Business Development Fund (BDF) is a state financial institution whose mission is to support financing for micro, small, and medium-sized enterprises (MSMEs) in Ukraine on favorable terms. The BDF provides entrepreneurs with access to financial resources, advisory services, and programmatic support, promoting private sector growth, job creation, and enhancing the competitiveness of Ukraine’s economy through the implementation of state programs that have demonstrated effectiveness in fostering economic resilience and growth, including “Affordable Loans 5-7-9%,” “Accessible Factoring,” and others.

KfW is one of the world’s leading development banks. Since 1948, KfW has been working on behalf of the Federal Republic of Germany and its federal states to improve economic, social, and environmental living conditions worldwide.

In 2023 alone, the bank provided financing totaling €111.3 billion, of which 67% was allocated to climate and environmental protection measures.
In Germany, the KfW Group maintains offices in Frankfurt am Main, Berlin, Bonn, and Cologne. Its global network includes approximately 80 local and regional offices.