EIF IN
MALTA
Investing in the future of Maltese SMEs
Small and medium-size enterprises are the heart of the Maltese economy.
Representing 99% of all businesses and more than two thirds of the workforce, Malta's 38,400 SMEs are responsible for driving innovation as well as spurring on growth, and their daily routine is what ensures the competitiveness of the Maltese economy. But to do that, they often need finance.
At the same time, as the smallest actors in the economy, they are often the hardest hit when the economy encounters turbulence, which is why it is so crucial for them to have financial options in order to maintain and eventually grow their businesses.
At the EIF, our mission is to improve access to finance for small businesses across the EU. In Malta, we have been supporting SMEs using a broad range of instruments, including many tailored to the needs of the Maltese market and designed with the Maltese government and local authorities.
As a result, we've been able to support more than 2,000 Maltese businesses, ranging from improving the energy efficiency of residential construction, wellness services and food supplements, and medical technology to combat cardiovascular disease, making sure they have the financial fuel they need to pursue their ambitions.
Our intention is to continue to extend this type of support to the Maltese market, making access to finance easier as we collectively move towards a greener, digital and more inclusive Europe.
Success stories
Paul Fenech
Success stories
Paul Fenech
Achieving climate neutrality is a goal that requires collective effort from all parties—governments, NGOs, small businesses, private households, and public or private individuals. For this reason, the EIF and the Maltese government teamed up for a pilot financing programme to incentivise investments in renewable energy and energy efficiency.
One such investment was made by Ing. Paul Fenech from Ta’Xbiex to improve the energy efficiency of his new build, making it the first certified low energy building on the island. A mechanical engineer by profession, Paul has taken a keen interest in energy efficiency and spent time getting certified as a Passive House Designer with the PHI institute in Darmstadt, Germany.
Measures to ensure energy efficiency included a continuous high quality thermal envelope with excellent insulation and air tightness, thermal bridge-free construction, highly efficient windows with overhangs to protect from direct sunlight at peak hours, and mechanical ventilation with heat recovery and humidity control. “These interventions last a long time. The first high energy efficient building in Darmstadt is still performing like it was on day 1, over 30 years ago,” he added.
Umana Medical
Cardiovascular disease is leading cause of death across the EU, but one innovative solution comes from Umana Medical Technologies, a Maltese company with proprietary technology based on the latest innovations in the fields of nanotechnology, biosensors, and wearable devices, is doing its part to stem cardiovascular disease. Its flagship product, the Umana T1 Heart Monitor, functions as a non-invasive vital sign monitoring device.
As Dr. Adrian Trevisan, CEO and co-founder, explains: “It’s a bit like temporary tattoos, but using a nanomaterial we developed and including sensors and transmitters to do everything that other heart monitors can do, only without the nuisance.” This innovative device has very thin epidermal sensors capable of taking more accurate measurements, capturing and analysing the electrical activity of the heart in real time. Data then transfers wirelessly to an application running on a smartphone, recording, and analysing signals to monitor and detect abnormalities. Medical professionals can access the information remotely, and, whenever a significant activity is detected, the user can choose to have a text message sent immediately to a chosen third party.
CARM & Co
“People’s approach to health and fitness has definitely changed recently. Ten years ago, a running race in Malta would attract maybe 150 runners. Today there are thousands. When I used to compete in triathlons, there were no more than five of us competing. Today there are maybe 100-120 athletes,” says Robert Vela, Founder and Director of CARM & Co. “Everyone is so much more health conscious these days, so our products come in handy.”
CARM & Co is a family-run business—the name C-A-R-M derives from the initials of Robert, his wife and their two children. Based in Qormi, the business offers wellness services and food supplements to people looking to improve their health, fitness, or physical performance. Over the past 8 years, the company has been growing, establishing itself in the B2B market in Malta, supplying, amongst others, fitness centres, pharmacies and supermarkets with food supplements. “I’ve always been into sport and health, mainly doing triathlons and long-distance swimming, so starting a business in this field came almost naturally to me.”
Key figures
Over
of EIF financing
Transactions with financial intermediaries
Guarantees support since inception
made available for
Maltese businesses
Mandates in focus
The EIF continues to deploy capital in Malta under a wide range of strategic programmes and mandates. Below are brief summaries of our main initiatives in Malta.
InvestEU
The InvestEU programme provides the EU with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It is helping to mobilise private investments for the EU's policy priorities, such as the European Green Deal and the digital transition. The InvestEU Programme brings together under one roof the multitude of EU financial instruments previously available to support investment in the EU, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is implemented through financial partners that will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.
EFSI
The European Fund for Strategic Investments formed part of the EU's Investment Plan for Europe, launched by the European Commission in 2015. EFSI addressed market gaps in financing - whether in infrastructure, research, energy efficiency or risk finance for SMEs – and mobilised private investment into these areas. Through EFSI the EIF deployed €10.5bn in resources of the European Commission, the EIB and the EIF to improve access to finance for SMEs and small midcaps.
RCR
The EIB’s Risk Capital Resources (RCR) is the core pillar of the EIF’s equity activity. It has enabled us to pursue our equity strategy in the venture capital and growth segments for more than 25 years. In 2023, RCR accounted for 25% of our equity activity, committing €1.4bn to financial intermediaries.
EGF
The European Guarantee Fund was created by the EIB Group with contributions from Malta and other Member States to protect companies struggling in the crisis caused by COVID-19. With almost €25bn in guarantees, the EGF allowed the EIB and EIF to swiftly offer companies, mostly SMEs and mid-caps, access to loans, guarantees, asset-backed securities, capital and other financial instruments. The EGF forms part of the package of recovery measures put in place by the EU, with the objective of providing a total of €540bn to support the hardest hit sectors of the European economy.
REPowerEU
The EU launched REPowerEU in 2022 to reduce dependence on fossil-fuel imports and accelerate the green transition. To support the plan, in October 2022, the EIB Group developed a package of measures focussing on renewable energy, energy efficiency, electricity networks and on deepening its engagement in green innovation and breakthrough technologies. Under REPowerEU, the EIF will invest €4.5bn by 2027 through EIF equity products.
SME Initiative
This programme to stimulate SME financing in Europe deploys funds from the EU, the EIB Group, and participating Member States. The EIF implements the initiative (SMEi) through guarantees and securitisation, providing financial intermediaries with partial risk cover on loans to SMEs.
EERE Malta
The ESIF Maltese Energy Efficiency and Renewable Energy (EERE) fund of funds is an EIF-backed financial instrument dedicated to facilitating access to finance for both households and corporates (entrepreneurs, SMEs, mid-caps) in relation to energy efficiency and renewable energy investments in Malta. Initially funded with a budget of €15m to support the green transitioning of the economy, the instrument was increased in 2023 by €10m to support the strong appetite of the Maltese market, especially in the financing of electric vehicles. Based on this increase, the underlying portfolio of green loans will surpass €65m.
Malta Member State Compartment - Debt
Creating a successor instrument to the SME Initiative, the EIF and the Maltese government set up a financing instrument under the Malta Member State Compartment of the InvestEU programme. This instrument begins with an initial budget of €16.6m, made up of European Regional Development Fund (ERDF) and national resources through JEREMIE reflows, to be directed at building a €60m loan portfolio that will enhance access to finance and improve financing conditions for Maltese businesses, potentially also resulting in lower interest rates and reduced collateral requirements.
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