The European Investment Bank Group’s international development arm, EIB Global, and Ethiopian lender Dashen Bank are joining forces to make €40 million in financing available to small and medium-sized enterprises (SMEs) in Ethiopia, with a focus on agriculture, the environment and women’s empowerment.
EIB Global is providing a €20 million loan to Dashen Bank, which will match the sum and channel the total to Ethiopian SMEs. The financing will be offered to SMEs with better terms – including longer maturities – than in the domestic commercial market. This feature tackles a persistent barrier to private-sector growth in Ethiopia: limited access to finance.
At least 70% of the financing will be directed towards agriculture and related activities. Priority beneficiaries will include SMEs exporting to Europe and elsewhere and operating in sectors such as coffee, pulses, horticultural products and cereals.
