The European Bank for Reconstruction and Development (EBRD), in partnership with the European Union (EU), is expanding support for youth-led businesses in Mongolia through a new financing facility worth up to $80 million for XacBank, one of the country’s leading financial institutions. The initiative is designed to strengthen access to finance for young entrepreneurs and support the development of small and medium-sized enterprises (SMEs).
The funding is part of the EBRD’s Youth in Business programme in Central Asia and Mongolia, which focuses on MSMEs owned or led by individuals under the age of 35. The programme aims to unlock economic opportunities for young people by improving access to credit, business advisory services, and skills development.
A portion of the financing is backed by a risk-sharing guarantee of up to €3.45 million provided by the EU under its Global Gateway strategy. This support helps reduce lending risks for partner banks and encourages greater financial inclusion for younger entrepreneurs and early-stage businesses.
In addition to lending, the initiative includes advisory services and training for MSMEs, with a focus on strengthening digital capabilities, improving financial management, and supporting innovation-driven business models. These non-financial components are also supported by EU funding, reinforcing the goal of building long-term entrepreneurial capacity.
The programme comes at a critical time for Mongolia, where more than 60 percent of the population is under the age of 35. This young demographic presents both an economic opportunity and a challenge, as the country works to create sufficient employment and business opportunities for a rapidly growing workforce.
By improving access to finance and technical support, the initiative is expected to help young entrepreneurs scale their businesses, create jobs, and contribute to broader economic diversification in Mongolia.
The EBRD has invested more than $3 billion in Mongolia across 166 projects to date, with the majority of funding directed toward private-sector development. The new facility reinforces its long-term commitment to supporting inclusive growth and strengthening the country’s entrepreneurial ecosystem.
