In an effort to strengthen the retail sector in Romania, the European Bank for Reconstruction and Development (EBRD) has teamed up with Banca Transilvania to enhance the supply chain finance program for Profi Rom Food. This initiative aims to provide more suppliers with affordable working capital solutions, thereby promoting growth and stability within Profi’s extensive network of convenience stores. With a commitment to assume risk of up to €10 million, the EBRD will bolster the existing €20 million programme managed by Banca Transilvania. The project is aligned with the EBRD’s Country Strategy for Romania, focusing on supporting small and medium-sized enterprises (SMEs) and fortifying local supply chains.
A Strategic Collaboration to Enhance Supply Chain Stability
In the heart of Eastern Europe, Romania's retail landscape is set to undergo significant changes thanks to a strategic partnership between the European Bank for Reconstruction and Development (EBRD) and Banca Transilvania. This collaboration targets the supply chain finance programme for Profi Rom Food, a major player in Romania's retail sector, operating 1,750 local convenience stores under the Super, Go, and Loco brands. The EBRD has pledged to cover up to €10 million of risk in local currency to expand Profi’s supply chain finance programme. This move will increase the current programme, managed by Banca Transilvania, by the local-currency equivalent of €20 million, with the EBRD shouldering half of the risk. Notably, this marks the EBRD’s first supply chain finance transaction in Romania aimed at aiding a domestic value chain.
Profi works closely with approximately 1,800 national suppliers, and the programme seeks to integrate even more into its network. Suppliers participating in the programme will benefit from the EBRD’s Advice for Small Businesses (ASB) programme and external consultant expertise. These resources will assist them in developing effective green transition strategies, incorporating innovative solutions into their processes, and committing to the Science Based Targets initiative (SBTi). Additionally, suppliers who commit to and publish SBTi targets can receive cash incentives of up to €25,000 each from Horizon Europe, the European Union’s funding programme for research and innovation.
Victoria Zinchuk, Head of EBRD Romania, emphasized the bank's dedication to fostering innovation and sustainability within Romania’s retail sector. By enhancing Profi’s supply chain finance programme, the EBRD aims to empower SMEs, promote sustainable practices, and create substantial economic impact in line with its broader strategy for the region.
From a journalist’s perspective, this initiative signifies a pivotal moment for Romania's retail industry. It not only provides much-needed financial support but also encourages sustainable business practices among SMEs. The integration of green transition strategies and innovative solutions could set a new standard for the retail sector in Romania, potentially influencing other industries to follow suit. This collaboration exemplifies how international financial institutions can play a crucial role in driving local economic development while promoting environmental responsibility.