Promoting blending finance for migrant integration and financial inclusion

Migration remains a key challenge in Europe, shaping policy discussions and prompting innovative responses to integration and inclusion. As countries navigate the complex challenges of supporting newcomers while fostering cohesive societies, initiatives that promote the use of financial tools and local partnerships are increasingly important. One such initiative is the Partnerships and Financing for Migrant Inclusion (PAFMI), led by the Council of Europe Development Bank (CEB) with support from the EU’s Asylum, Migration and Integration Fund (AMIF).

For the last two and a half years, Ecorys’ International Development Unit (IDU) provided Monitoring and Evaluation (M&E) services for the Partnerships and Financing for Migrant Inclusion initiative. Our colleague Carmen Núñez-Borja recently attended the final event, marking the conclusion of our work.

This has been a rewarding and innovative project for Ecorys –  not only because of its focus on migration, but also due to its use of blended finance to support integration and financial inclusion across four EU countries. PAFMI showed how combining grants and loans with grassroots partnerships can address real challenges faced by migrants, from financial inclusion to barriers to employment. Both the Council of Europe Development Bank (CEB) and the European Commission’s DG HOME have committed to further promoting financial instruments for migrant inclusion in Europe.

PAFMI comprised four pilot projects:

• Belgium: MicroStart led a project in Brussels that empowered migrants through tailored entrepreneurship training, individual coaching, and access to microcredit, fostering self-employment and economic independence.
• Finland: The City of Väntää implemented SMILE, a community-based initiative that promoted migrant family inclusion through multilingual job coaching, school integration activities for children, and strengthened dialogue between families and local services.
• Italy: Microlab and its partners launched EMPOWER!, combining entrepreneurship training, financial education, and mentoring with microloans and personalised support for the recognition of foreign qualifications.
• The Netherlands: Qredits provided tailored entrepreneurship training to migrants, complemented by one-on-one coaching and access to microloans to help launch and grow their businesses.

Our Technical Monitoring, Reporting and Dissemination of Best Practices services for CEB included the conceptualisation and participatory development of the Theory of Change (ToC) for PAFMI; design of the Monitoring Framework; periodic monitoring missions (a total of 16 monitoring missions) and M&E support to pilot projects throughout implementation; a mid-term review of PAFMI; and the Final report on Best Practices and Lessons Learned. 

If you’re interested in learning more, reach out to Carmen Núñez-Borja.