Ethiopia’s second-biggest private bank Dashen, has partnered with global nonprofit Accion and the Mastercard Center for Inclusive Growth to build an innovation hub that focuses on women-owned micro, small, and medium enterprises (MSME). The Hub locks in on bridging the financing gap for MSMEs by expanding access to digital financial services.
An artificial intelligence-powered interface will be integrated into the Hub that provides an alternative credit scoring model to determine the creditworthiness of the MSMEs. The Hub will also pilot embedded finance products, allowing MSMEs to secure credit directly through supply-chain partnerships.
The initiative seeks to address Ethiopia’s $4.2 billion MSME financing gap and improve financial inclusion in a country where only 6% of microenterprises and 1.9% of small businesses currently access formal credit.
Asfaw Alemu, CEO of Dashen Bank, pointed to the possibilities of leveraging technology to address challenges in attaining financial inclusivity across Ethiopia.
“Women-led businesses often lack formal financial records or assets for collateral. By leveraging technology, we aim to create inclusive systems that empower these entrepreneurs to grow sustainably,” he said.
Accion’s involvement builds on its work in Ethiopia since 2022, initially supporting refugees in regions like Gambella and Addis Ababa. Its formal partnership with Dashen Bank began in March 2024, with a focus on designing financial products tailored to women-owned businesses.
No Comment Found.