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EU, Germany, Netherlands Launch Euro 36 Million Program to Bolster Ethiopian MSMEs

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The European Union (EU), Germany, and the Netherlands launched a Euro 36 million program to revitalize Ethiopia's conflict-affected areas. The four-year initiative targets micro, small, and medium-sized enterprises (MSMEs) in Afar, Amhara, and Tigray.

Funded by the EU, Germany, and the Netherlands, the program is implemented by KfW, GIZ, and UNCDF. It aims to enhance MSME access to finance, provide technical support, and strengthen financial institutions. The EU Ambassador to Ethiopia highlighted the program's role in fostering social cohesion, economic resurgence, and peace.

Ministry of Industry commended the initiative, emphasizing its focus on youth and women's employment. KfW will provide credit lines through local banks, while GIZ offers business development services and training. UNCDF will focus on digital financial services and new financial products.
This collaborative effort between EU member states and UNCDF aims to contribute to normalcy through economic recovery in Ethiopia's post-conflict areas.

Source: The Ethiopian Herald