Promotion of the Ethiopian Private Sector

Project Overview

In April 2023, IAS kicked-off a new project in Ethiopia. On behalf of KfW our FS experts will work together with the Development Bank of Ethiopia (DBE) and private commercial banks to foster lending to small and medium-sized enterprises (SMEs). The programme provides support for the DBE in the management of the credit line and on lending funds to the banks on the one hand. On the other hand, the consultant team will support up to four local banks in setting up a SME Lending strategy, developing specific products for the SME clients as well as supporting the staff in all areas around credit analysis, risk management and marketing. As in Germany, SMEs have a great potential to play an important role in economic growth and providing employment but they are facing considerable constraints in accessing loans from financial institutions. Therefore, the German government provided a grant to Ethiopia to improve SMEs access to finance, which will be facilitated through our project.