Dutch-rooted global development organization SNV is collaborating with KMD London, a consultancy firm, to launch a mobile app-based comprehensive financial solution for medium, small, and micro enterprises (MSME) through three Ethiopian banks. The platform provides non-collateral cash flow-based loans and inventory management tools to alleviate financial service hurdles faced by local MSMEs while minimizing risks through an insurance facility. It is part of the Livelihoods Improvement for Women and Youth (LIWAY) program, which looks to improve the lives of over a quarter million Ethiopians until 2026.
Tatek Tesfaye, market system development adviser at SNV, says a two-year planning period preceded the development of the platform that relies on cash flow for its services. He expects the project, one of 21 others undertaken by the NGO, to address financial management and access hurdles faced by MSMEs.
“It will empower them (MSMEs) significantly,” Tatek told Shega.
Prospective users can register at the nearest branches of the state-owned Commercial Bank of Ethiopia (CBE), Awash Bank, and Ahadu when the platform launches, while more banks might join in the future. After relevant documentation is provided, the system already integrated into the banks’ core banking system can analyze risk to determine the size of loans. Bank agents equipped with a different app will conduct sight visits to the MSME’s to authenticate details and evaluate their status.
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