Mekelle:  9 May 2024 (Tigray Herald)

Ethiopia: Mastercard Foundation, Kifiya launch program to enhance digital credit access for Ethiopian MSMEs

The Mastercard Foundation and #Kifiya Financial Technology PLC have announced a $100 million partnership program aimed at increasing access to uncollateralized digital credit products for micro, small, and medium enterprises (MSMEs) in Ethiopia.

The Sustainable Access to Finance to Enable Entrepreneurship (SAFEE) program builds on the success of a previous pilot project. That pilot enabled over 148,000 MSMEs to access uncollateralized working capital credit within a 14-month period. Under SAFEE, six partner banks will unlock $300 million in financing, allowing more than 477,800 MSMEs to access relevant and appropriate uncollateralized digital credit products.

A key component of the program is facilitating access to mobile device financing for 425,000 young women. This initiative directly addresses challenges that have traditionally hindered MSMEs’ access to financial services, such as lack of credit history, limited availability of suitable products, and high costs associated with managing low-value credit.

Over the next five years, SAFEE is expected to create direct job opportunities for 2.18 million young people. The program will prioritize supporting vulnerable groups, including women, persons with disabilities, refugees, and internally displaced persons.