Menzwerk Grefie, the Coordinator of the Small and Medium Enterprise Finance Project, revealed that a fund of USD 200 million was allocated for the project from the World Bank. This newly allocated budget came after the USD 276 million fund which was provided by the World Bank previously.

According to the Coordinator, the World Bank approved the funding considering the pressure caused by the global outbreak of Covid-19 on small and medium enterprises. The fund will be used for the provision of machine leases, operational loans, and business development services, it was learnt.

The Small and Medium Enterprise Finance Project commenced five years ago based on an agreement between the Ethiopian Government and the World Bank. The project’s objective, according to the World Bank, is to increase access to finance and building form capabilities for eligible small and medium enterprises in Ethiopia, with a focus on responding to the COVID-19 pandemic.

It is stated that out of the USD 276 million which was previously allocated for the project by the World Bank, USD 248 million was used to benefit 4,609 small and medium enterprises during the past five years.

In related news, Ethiopian Enterprise Development (EED) hosted a stakeholder consultation forum for the Small and Medium Enterprise Finance Project. The forum saw the participation of the Director General of Ethiopia Enterprise Development Biru Wolde, heads of manufacturing enterprises who were called from various regions, and other stakeholders.

Source: Fana BC and EED’s Facebook page

Additional source: The World Bank