Enterprise Partners wants to enable investment in small and medium enterprises (SMEs), large enterprises, along with providing them with more credit and equity, to create jobs across various sectors. Through our interventions, we diversify sources of capital for enterprises and help financial institutions build technical capacity to suit a range of markets. We intend to generate £160 million of new investments in different sectors, and 48,000 jobs in SMEs and large enterprises.
Theory of Change
Enterprise Partners seeks to establish a vibrant investment advisory market for the deployment of private capital in Ethiopia. We are working to improve deal-facilitation functions and raise awareness of, and enthusiasm for, private equity opportunities. To that end, we have engaged a leading bank in Ethiopia to provide advice on private capital loans to enterprises. The bank’s advisers will be able to educate in better deal-making and their involvement will hopefully lead to an increased deployment of private capital. We identify specific investment opportunities through our programmes such as the Investors’ Linkage Platform, while building capacity in the investment advisory market in Ethiopia through our programme targeting the development of chartered financial analysts.
Enterprise Partners is working to tackle the challenge of the lack of access to finance among small and medium enterprises within the country. We have developed interventions that increase access to finance for small and medium enterprises (SMEs), by improving the capacity of lending financial institutions (such as various microfinance institutions, capital goods financing companies, and the Development Bank of Ethiopia) in order to address the needs of the SME market. This is achieved through two large-scale initiatives, the Women’s Entrepreneurship Development Programme (WEDP), and the SME Finance Project (SMEFP). Both initiatives provide technical assistance to financial institutions, in addition to providing large ‘credit lines’ funded by multiple donors, such as the World Bank. As part of SMEFP, we are helping to facilitate lease finance mechanisms – the first of their kind in Ethiopia.
Enterprise Partners is working to increase foreign direct investment in Ethiopia’s’ industrial parks in a number of ways: by enhancing the resource capacity of stakeholders such as the Ethiopian Investment Commission (EIC), by supporting the promotion and development of industrial parks, and by drafting a plan for investment promotion in the country.
Hanna, Meseret, and Lidiya - an investment case study
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