In 1992, following the change in the political system in Albania and amidst a severe socio-economic depression, the World Bank initiated the "Support for Rural Areas in Albania, with a priority on mountainous regions, to make them as livable as possible." It was at this moment that the journey of our institution began.

Our mission was: to alleviate poverty in a proactive manner by injecting financial resources into the economy and supporting people in breaking the psychological barriers created by 40 years of isolation and a centralized economy.

In August 1992, the pilot project was launched by:

• Ms. Maria Nowak, Manager from the World Bank,
• Mr. Konrad Ellsásser, Consultant,
• Ms. Zana Konini, Albanian Director.

An in-depth survey was conducted on 170 family farms in the Elbasan district.

Seven villages in the mountainous and hilly areas of the Gjinar and Shënavlash communes were selected to begin the work. The "Village Credit Funds" (FKF) structures were established, which were informal groups of residents (30-40 people) with stable social ties. The first regulations were drafted and procedures for the FKF were defined.

The Village Credit Councils were accountable to the Village Credit Fund and acted as guarantors for borrowers in their village.

On November 10, 1992, in Gjinar, Elbasan, with Chairman Sotir Shqau, the first 13 loans were distributed;

• Shilbatër, Chairman Musa Jolla, the first loan disbursed on December 5, 1992;
• Shënavlash, Chairman Bajram Hoxha, the first loan disbursed on November 12, 1992.

Support was provided by the Agricultural Bank of Elbasan, with Director Mr. Ibrahim Kumria.

These were the loans that laid the foundations for the activity, which expanded, developed, and consolidated year after year.

• In January 1993, by a special decision of the Government, the Rural Development Fund (RDF) was established with the objective of implementing the World Bank project “For the Alleviation of Rural Poverty,” which created the opportunity for a broader extension into rural areas.

• The Rural Development Fund was composed of two departments: the Rural Infrastructure Department and the Rural Credit Department, which in 1995 was joined by the Veterinary Support Sector, as livestock credit was dominant at that time.

• Based on the success of the Rural Development Fund, in 1995, the World Bank approved a new project for the development of rural, semi-urban, and urban areas, transforming the RDF into the Albanian Development Fund (ADF).

• The Rural Credit Department in this foundation continued to successfully implement the rural microcredit program, developing and expanding the lending activity based on the FKF structures.

• The approval of the first law “On Savings and Credit Associations and Their Unions” in 1996, with major amendments in 2002. This law was used by the Albanian Savings and Credit Union and its network of SACUs.

• Ms. Maria Nowak, Ms. Kathryn Funk, Ms. Benedicte Giorgio, and Mr. Gjergj Sauli, dedicated consultants.

• Collaboration with “Crédit Mutuel” was one of the major achievements of the Rural Credit Department at that time. Mr. François de Cagny and Ms. Brigitte Nicolas were notable for their role in organizing training and groups from the Rural Credit Department.

• Training and ongoing assistance helped in the formation of staff and elected officials, developing work concepts for the Credit Officer.

• November - December 1992: 121 first loans

• 1993: 1,102 loans

• 1994: 2,751 loans

• 1995: 5,143 loans

• 1996: 8,996 loans

The 1997 crisis was a national phenomenon and naturally, it could not fail to affect us as well. However, our membership made the distinction and separation, believing in the system we had built together, with full confidence that it would be with us in the future.

Successfully overcoming the 1997 crisis and the extraordinary work done during 1998-1999 consolidated trust in the institution and demonstrated that it could function and continue to develop. This was because it successfully withstood the storms of the time, while many banks and businesses had suffered serious setbacks.

• In April 1999, the Rural Financing Fund (RFF) was established as a transitional institution for the creation of Savings and Credit Associations (SACAs);

• In June 1999, the Albanian Government and the World Bank approved the project “Microfinance in Albania” with the component “Network of Savings and Credit Associations”;

• The RFF was tasked with implementing the component for SACAs and inherited the assets, staff, and portfolio of the Rural Credit Department of the Albanian Development Fund;

• Ms. Zana Konini was appointed Director of the RFF.

The objectives of the RFF were:

• Creation of Savings and Credit Associations (SACAs);

• Creation of a Union of SACAs.

The new institution was supported by the World Bank and the Swiss Agency for Development and Cooperation (SDC).

Savings and Credit Associations (SACAs) are voluntary organizations where the “owners” are their members. The goal of SACAs is both social and economic.

The mission of SACAs is to provide financial services to members, aiming to stimulate productive activities, improve living conditions, and support economic development.

• 2000 - Creation of the first Savings and Credit Associations, transforming the Rural Credit Funds;

• 2000-2002 - Expansion of the SACA network;

• May 3, 2001 - Approval by the Assembly of the Law “On Savings and Credit Associations and Their Unions”;

• January 25, 2002 - Creation of the Albanian Union of Savings and Credit;

• February 27, 2002 – Approval of the first regulatory acts for SACAs by the Bank of Albania.

Figures as of December 2001

Number of villages: 248

Credit portfolio: $5,427,917

Active clients: 6,400

Portfolio at risk: 10%

Repayment rate: 60%

Operational Self-Sufficiency: 78%

Financial Self-Sufficiency: 55%

Number of SACAs: 88

On January 25, 2002, the first Union of Savings and Credit Associations (SACAs) was established in Albania, representing 60 SACAs.

Mission of the Union of SACAs:

• To provide financial services to the members of SACAs, aiming to promote productive activities, improve living standards, and support economic development in rural areas.
• To represent, protect, and promote the interests of SACAs, members of the Union.
• To coordinate the activities of the SACAs network and provide services of common interest.

The main governing body of the Union was the General Assembly, which represented all members. The Assembly elected the Board of Directors with 7 members.

Ms. Zana Konini was elected Chairperson of the Board of Directors.

After the creation of the Union, the expansion of the network of SACAs continued both in existing areas and in new regions.

By the end of 2003, there were 94 SACAs, with 8,161 members, in 8 districts and 278 villages across Albania.

“After more than two decades of successful activity, it can be said with full confidence that the Union, established on the basis of work and values, was a strong provider in the microfinance market, with 100% Albanian capital, owned by farmers who were also beneficiaries of financial services. It played a significant role in advancing the development of agriculture and rural finance in general.”

The Path to Major Transformation

Numerous meetings and discussions were held to address the challenges dictated by the stage of Union development, the socio-economic situation in the country, recent legal changes, and primarily the growing expectations of the membership.

The consolidation of SHKKs into a single SHKK was considered the only solution that positively addressed all of the above issues.

The transformation aimed to ensure:

• For Members: Higher service levels and new channels; more products and services; a stronger institution.
• For the Board Members: Preservation of their important role in SHKK and involvement in membership expansion with improved offerings.
• For Staff: Capacity building and a challenging work environment; career opportunities; a more organized institution with a growing image.
• For the Country and Regulator: Establishment of a strong financial institution, increased agricultural financing; a partner institution for rural economic development and financial inclusion.
• For Farmers: A financial institution with an interest in agricultural development in Albania and more comprehensive financial services.

SHKK FED Invest represents the largest non-profit financial cooperative in the country, with over 60 urban and rural offices across the entire territory, comparable in number to the major banks in the country. Positioned strongly in the microfinance market, FED Invest is a promoter of development and entrepreneurship not only in rural areas but almost throughout Albania, serving a wide range of the population, from the most excluded segments with limited access to finance to successful SMEs.

• We have a clear vision that has guided us through many challenges;
• Our Governing Council leads the institution with expertise and professionalism;
• With physical and online/digital channels even in the most remote areas;
• Favorable interest rates for loans and deposits;
• A unique and solid governance model, with the Member at the Center;
• Financial and non-financial services, including digitalized ones;
• Maximum attention to financial and digital education, consistently providing members with consultancy and expertise.

The successful launch of the new Oracle Flexcube banking system on January 29, 2020, marked the culmination of a major project that involved all FED Invest structures and staff, with support from JICA consultants and Rabobank experts.

Now, FED Invest also offers:

• Current Accounts
• Internet Banking – FED Online
• Utility Payments

FED Invest and the FiAS Project conceived the concept of providing non-financial services to Albanian farmers through the ABA Center (Agribusiness Assistance).

The official presentation of the ABA Center took place on January 29, 2021, at a hybrid event, organized both at the physical center in Lushnje and on Zoom, with over 80 participants, including the Ambassador of Japan, the Deputy Minister of Finance and Economy, international partners, and others.

With its two channels, physical and digital, the center helps farmers grow through: agricultural and livestock technology knowledge; training and financial education for capacity development; opportunities for interaction among value chain actors; facilitating market access to promote business development, etc.

The services of the ABA Center are available in real-time for all Albanian farmers on the ABA Online digital platform, providing information on production technology in agriculture and livestock, market prices of agricultural products, government support schemes, information on agricultural inputs, agricultural certifications and export standards, dedicated expertise from renowned specialists in agriculture and livestock; as well as practical field training and demonstrations; seminars for supporting agri-businesses at every stage of their business; activities for connecting value chain actors, etc.

Around February-March 2020, an unknown respiratory illness was rapidly spreading worldwide. Within a few weeks, the SARS-CoV-2 virus, named COVID-19, shook and paralyzed political, economic, social, and cultural life across the globe. In response to this unprecedented crisis, FED Invest demonstrated flexibility and agility. The organization reacted swiftly, maintaining its activity pace: it approved the Emergency Pandemic Response Package; implemented stringent safety measures to prevent the virus's spread; kept branches open and continued to serve members even during the most challenging days; enabled remote work and adopted an office rotation system; offered a series of training sessions for staff; provided tablets and laptops to facilitate online communication with colleagues, clients, and partners; and successfully adapted products and services to support its membership. Operations continued daily across all branches, further strengthening member trust; lending activities never ceased, despite the extraordinary challenges of fieldwork; liquidity was ensured, and various contingency scenarios and stress tests were developed; to assist members in difficulty, 10% of active loans were restructured within a record two-month period, adjusting installments, grace periods, loan terms, and other relief measures according to borrowers' capacities, among other actions.

Throughout its journey, FED Invest has consistently chosen strategic partners who have supported it in achieving its objectives. In expressing gratitude for their support, we mention here: the World Bank, the Albanian Government, Credit Mutuel, SDC, Rabobank, EFSE DF, JICA, EaSI, EIF, Helenos Fund, RCFG, and others…

Our activity can be considered one of the largest movements for progress in rural and peri-urban areas in Albania over the past 30 years because it supported the creation of the first civil society structures in villages and contributed to the expansion of financial inclusion through education, training, and financial services.