Development of the Ethiopian private sector

active

The aim of the project is to improve the contribution of small and medium-sized enterprises (SMEs) to poverty reduction and job creation by facilitating their access to finance. The project, planned as an SME credit line, is to be passed on to private Ethiopian financial institutions (immediate target group) via the state-owned Development Bank of Ethiopia as the apex institution. The indirect target group are SMEs, which will gain improved access to a needs-based loan financing offer through the additional refinancing and the SME-specific products. As a result of the COVID-19 pandemic, microfinance institutions (MFIs) are particularly suffering from liquidity problems and at the same time serve the smallest segment of the target group. MFIs should therefore initially be able to participate in the FC module. An accompanying measure will advise the apex institution and the participating financial institutions on all processes and procedures for issuing the loans.