On announcing the loan’s approval, deputy prime minister for European Integration, Bozidar Djelic said it is likely be confirmed in June and realised in September.
Challenges
However, Marcia Mogelonsky, global food analyst at Mintel told ConfectioneryNews.com the export market could be challenging for Serbia, as a major trade partner, Russia (and other CIS countries) have flourishing chocolate industries of their own.
These countries have also seen significant international growth/support, she said.
“The difference is that CIS countries have multinational chocolate partners in situ, such as Kraft, Nestle and Mars,” the analyst said.
“The investment from EIB would have to set up companies to deal with a weak internal market and with a suite of strong multinational competitors in the country's biggest trade partners.”
Success
However, Mogelonsky said Serbia does have a raft of free-trade agreements with CIS and EU counties.
“Key to success will have to be a point of differentiation that makes Serbian chocolate something distinctive or special. The only other tactic would be to market to ex-pat Serbians who crave a 'taste of home’,” said the analyst.
“But it can only be a starting point if the desire is to build a viable Serbian chocolate export market,” said Mogelonsky.
Previous EIB ventures
According to the analyst, the EIB's venture to boost the industry in Serbia is not the first foreign government's foray into the country.
In 2005, USAID-funded Serbia Enterprise Development Project helped export Adore, a premium chocolate from Serbia - the confection debut at the New York Fancy Food show.
In 2006, the European Bank for Reconstruction and Development lent €10m to Serbian chocolatier Sobo Stark to help modernize production facilities and increase exports.