The Ministry of Labour and Skills is working to make government-guaranteed loans available to enterprises. During a consultation held on challenges faced by enterprises in Ethiopia, Nigusu Tilahun, State Minister of Ministry of Labour and Skills, stated that the envisaged scheme would solve financial challenges for enterprises and enhance their effectiveness.

According to the State Minister, a loan guarantee fund will be established which takes into account the country’s current situation after further consultation with experts, partners, and financial institutions.

It is to be recalled that the Development Bank of Ethiopia announced in January this year that it would avail Birr 30 billion for approval and Birr 24 billion for disbursement that would be allocated to private investments which are involved in agriculture and industry and small and medium enterprises. It is expected that this loan disbursement scheme would also address enterprises.

The data of Ethiopian Enterprise Development (EED) shows that there are currently 1,378 enterprises in Ethiopia. EED targets the establishment of 4062 new enterprises by the end of the current fiscal year.

Source: Ethiopian News Agency and 2Merkato archives

Image source: Ethiopian News Agency