Providing technical assistance to financial institutions to qualify for credit lines to lend to small and medium enterprises
Small and Medium Enterprises (SMEs) are well positioned to become a significant developmental force that can promote the rural development leading to inclusive economic growth. SMEs are critical to effectively catalyse the country’s transformation from light manufacturing to heavy manufacturing industry.
In 2017, the World Bank allocated 269 Million USD for the SMEFP credit line, whereas technical assistance services were implemented through EP and the Foreign Commonwealth Development Office.
Enterprise Partners worked to tackle the lack of access to finance among small and medium enterprises within the country. We 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 was 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. The programme bridges the gap in access to finance by also providing technical assistance to the Development Bank of Ethiopia to strengthen a new and innovative lease-financing product in the financial market – the first of their kind in Ethiopia.
The technical assistance provided by EP to financial intuitions is presented in the form of an eLearning programme. Visit this link to access it: https://learnsmefinance.firstconsultet.com