- IFC has partnered with Dashen Bank S.C. on a $10 million risk-sharing deal to unlock up to $20 million in loans for small businesses in Ethiopia.
- The program focuses on agribusinesses and companies owned or led by women, who often struggle to access credit.
- The guarantee is backed by the IDA18 IFC-MIGA Private Sector Window to reduce risk and attract more lending.
- IFC is expanding its presence in Ethiopia, having committed $605 million in fiscal year 2025 across key growth sectors.
The agreement works through a risk-sharing facility: IFC will cover half of Dashen Bank’s potential losses on a targeted SME loan portfolio.
The first-loss support comes from the IDA18 IFC-MIGA Private Sector Window, which helps attract private investment into more challenging markets.
This setup gives small businesses a better chance of getting the loans they need to grow, buy equipment, hire workers, and expand into new markets.
He explained that many SMEs struggle to get credit, and this program will help the bank lend more while managing its risk. He added that the partnership will support entrepreneurship, job creation, and financial inclusion across the country.
IFC Vice President for Africa, Ethiopis Tafara, said the goal is to build a financial system that gives more people, especially women and those working in agriculture, real access to capital.
He stressed that small businesses are central to Ethiopia’s growth story, and improving access to finance is key to unlocking their potential.
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