The Challenge Fund is the grant scheme of the project EU4Innovation, Phase II, 2023-2026 in support of innovative start-ups. The fund is managed by the Swedish International Development Cooperation Agency (Sida) and implemented in cooperation with Partners Albania for Change and Development.

The aim of the Challenge Fund is to improve and diversify finance opportunities for Albanian start-ups and MSMEs, with innovative solutions (e.g., products, services, business models, processes) and (ii) start-ups with prominent tech content with innovative solutions (e.g., products, services, business models, processes). The fund is open to start-ups created around innovative business concepts, registered or to be registered and operating in Albania.

The grantees will be selected on a competitive basis. The selection would be carried out in a transparent manner based on specific criteria, involving an evaluation committee with national and international expertise. All aspects of the fund would take place digitally, including the application process. Successful grantees will match up the grant with their own financing.

The Challenge Fund also comprises the design and delivery of a capacity-building program with the aim of increasing the capacities of awarded Albanian MSMEs and start-ups to initiate and/or strengthen their business initiatives that foster inclusive development in the form of integration between training, mentoring, and coaching and study visits to enterprises.

The Challenge Fund was launched in a public event held at the Tirana Pyramid, on November 17, 2023. The event brought together donors, government, development agencies, and the business community, with the honorable participation of the H.E. Mr. Niklas Strom, Ambassador of Sweden, the Minister of State for Entrepreneurship and Business Climate, Ms. Delina Ibrahimaj, Head of Cooperation at the EU Delegation to Albania, Mr. Hubert Perr, Head of German Development Cooperation Dr. Iven Schad, General Director for Economic Development at the Ministry of Finance and Economy, Ms. Elira Demiraj, and Director of Partners Albania for Change and Development, Ms. Juliana Hoxha. The event was moderated by Ms. Petra Burcher, Head of Swedish Development Cooperation.

This activity marked the launch of the First Call for Proposals of Challenge Fund, which remained open until December 22, 2023. As part of the 1st Call, 247 startups applied. At the end of the evaluation process, the Jury selected 20 winners.

The Second Call for Proposal was opened on May 9th and closed on June 21st, 2024. The evaluation is underway.