Ahadu Bank has announced a groundbreaking initiative to provide loans without collateral, aimed at supporting micro and small businesses in Ethiopia. The bank is entering the final phase of implementing this program, which will allow sector operators to access funding based on cash flow rather than requiring asset security.
Sealem Liben, CEO of Ahadu Bank, highlighted the innovative approach enabled by the bank’s new technology app, “Mahder.” This user-friendly platform simplifies the loan application process, making it easier for borrowers to obtain financial support.
Since its inception, Ahadu Bank has embraced the motto “Inclusive Intermediation,” focusing on empowering Micro, Small, and Medium Enterprises (MSMEs), which are seen as vital drivers of economic growth. The bank has allocated up to 25% of its total loan portfolio to this sector.
In collaboration with SNV, the Dutch Development Organization, and KMD Apsys, Ahadu Bank aims to enhance its support for micro-lending initiatives. This strategic move is expected to significantly benefit entrepreneurs and contribute to the overall economic development of the region.
With this initiative, Ahadu Bank continues to demonstrate its commitment to fostering financial inclusion and supporting the growth of small businesses in Ethiopia.
