Slovak Ministry of Finance ODA

The MF SR plays a key role in Slovak development cooperation. In addition to its own ODA activities, it ensures contributions to international organizations and financial institutions and collaborates on ODA initiatives with various partners, including UNDP, EXIMBANKA SR, the Public Expenditure and Financial Accountability Program (PEFA), and the Center for Excellence in Finance (CEF) in Ljubljana. Additionally, it is a member of The Addis Tax Initiative (ATI). However, UNDP is the oldest and largest partner in terms of financial contributions and the number of initiatives. 

MFSR ODA KEY PARTNERS 

In addition to the PPFD project, the MFSR and UNDP are implementing initiatives aimed at fostering innovation in public administration and finance.  

In 2022 UNDP and the MFSR launched the Slovak Transformation Fund (STF) project as a successor to the Transformative Governance and Financial Facility project (operational from 2015 to 2021). 

This complex project aims to support countries and cities by implementing innovative approaches and financing solutions across critical areas. It focuses on enhancing system transformation through systemic approaches, co-creation processes, and strengthening local ecosystems, supported by innovative funding sources. Recent Annual Report 

The project is structured around two main components: City Experiment Fund, aimed at transforming urban systems and exploring new financing mechanisms, and BOOST Acceleration Programme, fostering innovations for selected challenges.  

City Experiment Fund 

The City Experiment Fund (CEF) is an initiative of the Slovak Transformation Fund, driving systemic urban transformation across Europe and Central Asia. Utilizing a portfolio approach grounded in systems thinking, CEF helps cities tackle complex urban challenges by developing interconnected solutions that foster innovation, inclusivity, and resilience. CEF implementation brought so far following results:  

A Proven Approach to Urban Transformation: CEF has already demonstrated its transformative impact in five diverse cities – Skopje, Almaty, Stepanavan, Pljevlja, and Pristina. These cities have addressed pressing challenges like waste management, air pollution, youth employment, energy efficiency, and urban safety through innovative portfolios. CEF’s interventions showcase the power of tailored, city-specific solutions. Examples include North Macedonia’s first biohacking lab in Skopje or a residential energy efficiency program in Montenegro that provided financial support for homeowners to implement energy-saving measures, including pellet-based heating systems, window replacements, and thermal insulation for building envelopes. The program reached 150 residences and received 2.8 million euros of funding for Pljevlja alone.

Catalyzing Change Through Key Innovations: CEF introduces three core innovations to urban development: 

• Systems Thinking: Helping cities navigate interconnected urban challenges with holistic strategies. 

• Portfolio Design: Shifting from isolated projects to integrated portfolios for adaptive learning and impact. 

• Dynamic Management: Leveraging real-time feedback and sensemaking to refine strategies and respond to evolving needs. 

Empowering Cities Through Strategic Shifts: As of 2025, CEF scales its impact through thematic cohorts, uniting cities with shared challenges to drive collective learning and action. The program will expand its focus on innovative financing mechanisms, offering cities tools to catalyze urban transformation. By aligning closely with the BOOST program, CEF connects city portfolios with innovative solutions, fostering regional collaboration. 

BOOST

BOOST Impact Accelerator is a transformative acceleration program designed to amplify innovation and tackle critical development challenges. Launched in 2020 in response to COVID-19, BOOST has evolved to address broader issues such as inequality, governance, resilience, gender equality, and climate action. BOOST has created a robust methodology that transcends its initial scope, driving innovation across the region and beyond. 

Between 2020 and 2024, BOOST successfully launched seven acceleration programs, collaborating with over 200 NGOs, startups, SMEs, and academic institutions. These programs addressed diverse challenges, including improving air quality, advancing flood forecasting, expanding access to education, and promoting women’s empowerment in the fields of science, technology, engineering, and mathematics (STEM). Key successes supported by Slovakia include the Kyrgyz Space Program inspiring girls in STEM, Albania’s ConsciESG advancing ESG tools (Environmental, Social and Corporate Governance), and Safe You, an Armenian tech app combating gender-based violence, scaling to new countries. 

BOOST prioritizes gender equality through initiatives like the Women Innovators Program, which supported 45 women-led organizations in 16 countries. These programs provided grants, mentorship, and a platform for scaling impactful solutions, such as Slovakia’s Female Algorithm, which expanded its reach to Ukrainian refugees and secured additional funding from the European Bank for Reconstruction and Development. 

Looking ahead, BOOST is deepening its integration with the CEF, creating synergies between urban portfolios and accelerated solutions. Programs like Pitch Back, which connects alumni with investors and mentors, exemplify BOOST’s commitment to long-term impact. With plans to enhance its alumni network, foster thematic challenges, and introduce innovative financing models, BOOST is positioned to remain a cornerstone of systemic innovation, unlocking opportunities for cities and changemakers alike. 

The City Experiment Fund (CEF) has collaborated with the Resource Mobilization Facility (RMF), implemented under the Public and Private Finance for Development project, to design a token system in CEF partner cities. The initiative is aimed at incentivizing eco-conscious behaviour through an innovative blockchain-based tokenization system. The project was implemented in Skopje, North Macedonia, with a focus on sustainable management of biological waste, and in Podgorica, Montenegro, where the emphasis was on sustainable public transport. The initiative developed feasibility studies and plans for a token system that incentivizes individuals and businesses to adopt green practices, such as proper waste sorting and increased public transport usage. Collaborating with local partners, including waste management companies, supermarkets, and the HORECA (hotel, restaurant, caffe) sector, the project tailored solutions to address the unique urban challenges of each city. Additionally, it proposed scalable models adaptable for implementation in other cities across the region. 

Next steps include pursuing additional funding through municipal budgets, private sector partnerships, and platforms like the Cardano Project Catalyst to expand the Green Tokens initiative across the Western Balkans. 

The MFSR assisted the government of North Macedonia, through UNDP in North Macedonia, in preparing the National Development Strategy for 2022-2042. This strategy is the most comprehensive framework aimed at ensuring coordinated, holistic development of the country. 

Specifically, the MFSR contributed to establish a national cooperation structure that brings together key stakeholders, including the public, to participate in the formulation, communication, monitoring, and adjustment of the strategy. 

The MF SR supported also UNDP’s flagship initiative, the Ministry of Data. Through this program, three rounds of open calls were launched to develop data-driven tools and collaborative solutions addressing socio-economic challenges such as air pollution and urban mobility. The initiative engaged over 1,000 young people across 13 countries, resulting in 150 ideas submitted by more than 600 participants. Additionally, the programme produced valuable resources, including the Ministry of Data Handbook, a practical step-by-step manual for leveraging new data sources, and the Ministry of Data’s Guide to Meeting Data Innovation Challenges Successfully. This initiative was supported through the abovementioned Transformative Governance and Financial Facility. 

Alternative Finance Lab is a mechanism for exploring and tapping into new financial technologies and mechanisms to leverage investments for the achievement of the Sustainable Development Goals. 

Slovakia initially supported UNDP (under the Transformative Governance and Financial Facility) in exploring innovative financing mechanisms such as crowdfunding, impact investing, blockchain-based, and Islamic financing models. Originally launched with Slovak funding, this initiative has grown into an independent professional platform that continues to expand and diversify beyond its initial scope. 

The potential of social impact bonds (SIBs) has attracted increased attention over recent years. According to the Brookings Institute, in 2019 there were 135 impact bonds in 28 countries, in areas such as employment, social welfare, health, education and criminal justice. One of the fruits of the UNDP – Slovakia cooperation is introduction of the first social impact bond in Armenia. Its aim is to help dairy farmers increase productivity and help fight poverty, as higher productivity means higher household income. 

In the Western Balkans or Eastern Partnership countries, the UNDP team explored municipal and sovereign bonds through, for example, the Breathe Better Bond initiative that was issued by local governments and is paired with technical assistance, and resulting proceeds are used to invest in projects that reduce both air pollution and greenhouse gas emissions.  

With UNDP Morocco, the team supported the design of a digital passport that facilitates the direct trade of argan oil from women’s cooperatives in Southwest Morocco with exporters and buyers. This solution stimulates e-commerce sales, while building resilient businesses. In Serbia, the team helped pilot the use of blockchain for remittances from the diaspora community to reduce the cost of money transfers and enhance transparency. In Ecuador, the team supported the launch of The Other Bar — the world’s first blockchain shared value chocolate bar, which uses the new technology to deliver fair results for farmers and help them protect their environment. These efforts, while benefiting from Slovak support in their early phases, have since matured into independently functioning initiatives, demonstrating the enduring legacy of the Slovak partnership. 

The MFSR, together with the Export-Import Bank of the Slovak Republic (further EXIMBANKA) support the engagement of Slovak entrepreneurs’ participation in projects in developing countries through two joint initiatives: the Private Sector Liaison Officer (PSLO) and the program of concessional loans. 

EXIMBANKA is a Slovak export-credit agency established under the auspices of the MFSR. Since its establishment in 1997, it has primarily focused on facilitating foreign trade operations and supporting Slovak exporters to enhance the competitiveness of domestic goods and services and promote mutual economic exchange between Slovakia and other countries. With the increasing demand for active private sector involvement in development cooperation, EXIMBANKA has progressively established itself as a key player in the Slovak development ecosystem. 

By broadening its mandate to encompass development cooperation activities and expanding its portfolio, it creates opportunities for Slovak companies in developing countries, while also contributing to the sustainable economic and social development of partner countries. 

Since 2020, EXIMBANKA has been performing the role of a contact point for the Slovak Private Sector Liaison Officer. PSLO is a network of over 155 business intermediary organizations in more than 98 countries, designed to facilitate World Bank Group (WBG) communications with the private sector. EXIMBANKA focuses on connecting Slovak companies with the WBG and other international financial institutions, such as the European Investment Bank (EIB), the European Bank for Reconstruction and Development (EBRD), and the Council of Europe Development Bank (CEB). It facilitates access to business opportunities, streamlines engagement processes, and offers guidance on participating in development activities. 

EXIMBANKA also covers the program of concessional loans aimed at supporting Slovak exporters. This development cooperation instrument enables Slovak exporters to offer concessional financing to public sector clients in selected countries. Benefits are provided in various forms, such as reducing the principal or interest, extending loan maturities, and more. Depending on the target country, these incentives amount to 50% of the total contract value. The credit scheme is fully aligned with the rules of the World Trade Organization and the Organization for Economic Cooperation and Development (OECD), particularly the OECD Arrangement on Officially Supported Export Credits (Consensus). 

The concessional loan program aims to support projects that are commercially unfeasible, improve access to financing for partner countries, and create opportunities for Slovak companies in developing markets. It enables exporters to participate in projects that contribute to the economic and social development of the target country, while also generating benefits for Slovak businesses and the national economy. A key requirement for receiving financial contributions from Slovak ODA funds is the project’s development impact. The program is overseen by the Ministry of Finance of the Slovak Republic in cooperation with the Ministry of Foreign and European Affairs of the Slovak Republic. 

Cooperation with the European Union opens up new opportunities for greater involvement of EXIMBANKA and Slovak entrepreneurs in development activities. In 2021, EXIMBANKA successfully completed the Pillar Assessment—a certification process by the European Commission—qualifying it as an eligible institution for implementing EU-delegated cooperation projects. 

In practice, this certification enables EXIMBANKA to apply for the implementation of EU development projects, such as those under the Global Gateway Initiative or the Ukraine Investment Facility. This creates valuable opportunities for the private sector to participate in impactful international projects. 

The Ministry of Finance of the Slovak Republic has been a member of the Public Expenditure and Financial Accountability (PEFA) Program since April 2019. PEFA brings together eight partners– some of the most active donors in the area of public finance management. The program’s primary goal is to foster effective public financial management, ensuring more efficient use of public resources and enhance the quality of services delivered to citizens, with a particular emphasis on developing countries. A key element of the program, the PEFA assessment, is widely regarded as the most comprehensive and relevant global diagnostic tool for evaluating progress in public financial management (PFM) reforms. In addition to maintaining the PEFA assessment framework, the program’s activities include promoting research and capacity building related to public financial management (PFM). It also emphasizes integrating climate and gender considerations as key aspects of the PFM cycle. 

Established in 2001, the PEFA Program operates as a programmatic multi-donor trust fund. Slovakia joined the program in 2019, becoming the first of the so-called new donors invited to participate in this esteemed expert initiative. This achievement reflects Slovakia’s strong engagement in public financial management (PFM) and its experience in supporting PFM reforms in partner countries. The MFSR aims to play an active role within the program by contributing its expertise to assessments, reviews, and various PFM-related topics. 

More information about the program: https://www.pefa.org/. 

To foster knowledge exchange and provide technical assistance in public finance management, the Ministry of Finance of the Slovak Republic has partnered with the Center of Excellence in Finance (CEF). Based in Ljubljana, Slovenia, the CEF is an international organization that serves as a knowledge hub for the region dedicated to enhancing the capacities of public finance officials in Southeast Europe. Since 2018, the MFSR has been a member of both the CEF Advisory Board and the Governing Board. 

Current cooperation between the MFSR and the CEF

The partnership between the Ministry of Finance of the Slovak Republic (MFSR) and the Center of Excellence in Finance (CEF) began in 2010. Over the past decade, the MFSR has played an active role in various public financial management (PFM) capacity-building initiatives across the Western Balkans and Eastern Partnership countries. The collaboration in based on both, long-term bilateral projects and joint learning initiatives for partner countries. These efforts align with and enhance the programs of the MFSR, CEF, and other development partners, such as UNDP and the EU. The results of these initiatives leverage Slovakia’s expertise and experience in public financial management and development cooperation. 

The MFSR joint flagship initiatives with CEF includes the Developing Efficient and Resilient Tax Institutions (TAX) project, which aims to enhance public revenue in developing Southeast European countries by improving their tax systems. Another key project is Empowered Accountants and Auditors for Accountable Public Sector (EAPS), which focuses on strengthening the accountability of public sector institutions in the same region by developing professional capacities for auditors and accountants. 

These new projects build on the success of previous collaborations, including project Certified Training for Public Sector Accountants PACT2 in North Macedonia, as well as project Certified Training for Public Sector Accountants PACT1 and PACT3 in Montenegro.  

The partnership offers Slovak experts the opportunity to share their knowledge and experience, while also serving as a valuable learning experience for them.  

MFSR ODA OTHER INITIATIVES: