IFC has partnered with Dashen Bank S.C. to expand access to finance for small- and medium-sized enterprises (SMEs) in Ethiopia, aiming to support economic growth and job creation. The partnership focuses on providing credit to agribusinesses and women-owned or women-led businesses, addressing a critical need for financing among smaller enterprises in the country.
Under the agreement, IFC will provide a $10 million unfunded risk-sharing facility to Dashen Bank, covering 50% of the credit risk on a targeted SME loan portfolio of up to $20 million. This initiative is supported by the IDA18 IFC-MIGA Private Sector Window, which offers a first-loss guarantee to encourage investment in the market.
The collaboration also builds on IFC’s ongoing advisory work with Dashen Bank, helping strengthen the bank’s SME business model, expand its market reach, improve credit underwriting, and enhance risk management capabilities. Dashen Bank’s CEO, Asfaw Alemus, emphasized that the program will foster entrepreneurship, enhance financial inclusion, and create a foundation for sustainable economic development across Ethiopia.
IFC Vice President for Africa, Ethiopis Tafara, highlighted that the initiative aims to build a more inclusive and resilient financial system, unlocking opportunities for entrepreneurs and supporting MSMEs, particularly in agri-related sectors and women-led businesses. This project complements IFC’s broader investments in Ethiopia, which totaled $605 million in fiscal year 2025 across sectors including agribusiness, telecoms, and manufacturing, aligned with its 2030 strategy to promote sustainable growth and private sector development.
