Montenegro has launched the EU-backed MontEDIH programme, under which 130 small and medium-sized enterprises will receive free assessments aimed at improving digital maturity, productivity, energy efficiency and circular-economy practices. The programme will provide 80 companies with green and circular-economy assessments and transformation roadmaps, while 50 businesses will receive digital-maturity assessments and tailored digital-transformation strategies. A further 150 participants are expected to receive specialist training.
MontEDIH is financed through a combination of European, national and partner funding. The European Union will provide 50% through Digital Europe 2021-2027, while the Montenegrin government will finance 45% and project partners the remaining 5%. Participating companies will receive the services without payment. However, the government-funded portion is classified as de minimis state aid, requiring businesses to take the support into account when applying applicable state-aid limits. The programme represents a relatively modest financial intervention compared with major road, railway and energy investments, but its focus is on company-level transformation.
Montenegrin companies are increasingly required to improve data management, energy efficiency, environmental compliance and production processes as EU integration progresses. The costs of adapting to these requirements will therefore extend beyond public institutions to private businesses.
For SMEs, identifying the appropriate investment can itself be a challenge. A manufacturer may need digitalisation but lack the expertise to determine whether production software, ERP integration, cybersecurity or automated equipment should take priority. A hotel seeking lower energy costs may need to assess solar generation, heat pumps, building controls and other efficiency measures. Retail businesses may require improved inventory and customer-data systems without having dedicated internal IT capacity. MontEDIH addresses this initial diagnostic stage by providing companies with assessments and roadmaps before investment decisions are made.
The green component is also relevant to companies operating in European supply chains. Businesses exporting to EU markets face increasing expectations concerning energy consumption, emissions, resource efficiency and traceability. Suppliers may encounter these requirements indirectly when European customers request environmental information to meet their own reporting and compliance obligations. Companies unable to document energy use, material flows or production data could face greater difficulty maintaining relationships within European supply chains.
Digitalisation can support those environmental requirements because reliable environmental reporting depends on reliable operational data. Production information spread across spreadsheets and manual records can make it difficult to calculate energy or emissions intensity, while ERP and monitoring systems can provide data for both operational management and environmental reporting. The programme also targets productivity improvements. With labour costs rising and the domestic workforce limited, businesses need to generate more output per employee to maintain margins. Automation, scheduling systems, inventory management and digital customer platforms can contribute to that objective.
The pressure could increase after 2027 if the government proceeds with substantial minimum-wage increases, particularly for labour-intensive businesses that have fewer opportunities to compete through lower wage costs.
Free external assessments could be particularly relevant for smaller firms that would not normally hire specialist consultants. Montenegro’s economy is dominated by micro, small and medium-sized businesses, many of which operate with relatively simple management structures and limited dedicated resources for IT, sustainability or strategic investment. The assessment itself does not provide financing for the investments identified in a roadmap. Recommendations for new machinery, software or energy-efficiency improvements still require capital.
The programme could therefore be linked with financing available through commercial banks, the Investment and Development Fund framework, EBRD facilities and EU-backed guarantees. MontEDIH can identify potential investment projects, while financial institutions would provide the funding needed to implement them.
Structured assessments could also give companies more clearly defined investment plans when approaching lenders, including information about the purpose of financing and expected savings. Energy-efficiency projects are particularly suited to this approach because potential reductions in energy costs can often be quantified. EBRD programmes delivered through local banks already provide financing for energy-efficient residential and business investments, creating potential mechanisms for investments identified through MontEDIH. The programme could also strengthen companies’ preparation for future EU grant opportunities. European funding applications generally require clearly defined investment objectives, expected results and measurable indicators. Companies accustomed to structured transformation plans may therefore be better prepared to develop such applications.
MontEDIH’s immediate coverage remains limited to 130 companies, representing only a small portion of Montenegro’s SME sector. Its wider impact will depend on whether the approach can be replicated and whether participating companies demonstrate commercial returns from the investments recommended through the assessments. The selection of participating businesses will also influence results. Companies need both a genuine need for transformation and the capacity to implement the recommendations for detailed roadmaps to translate into investment.
The distribution of support across sectors will be another factor. Manufacturing offers significant opportunities for productivity and energy improvements, but tourism, logistics, food production and professional services also represent substantial parts of the SME economy.
The de minimis state-aid classification will require participating businesses to monitor their existing assistance against applicable limits. Although companies do not pay for the services, the support still represents an economic benefit under state-aid rules.
MontEDIH’s financing structure also combines European and domestic resources, with Digital Europe providing half of the funding, the Montenegrin government almost half and project partners the remainder. The programme brings EU integration directly into individual businesses through digital-maturity assessments, energy-efficiency planning and circular-economy roadmaps, alongside the broader legislative and infrastructure changes associated with the process. MontEDIH’s immediate target is 130 businesses, with another 150 participants expected to receive specialist training.
