Access to Finance
Micro Small Medium Enterprises (MSMEs) face significant challenge in getting access to finance. To tackle this problem, EDC added access to finance facility on July, 2017. Through the partnership with Enat Bank, EDC provided one-to-one business counselling service to 44 women-owned enterprises; and their business plans were reviewed and submitted to the bank for (collateral-free) loan processing.
So far, Enat Bank has provided collateral free loans, amounts to a total of 5.3 million birr, to 23 women-owned businesses (27 women entrepreneurs). About 24 business plans have passed the first screening by the Credit Committee of the Bank, but 12 didn’t pass the technical appraisal; while a total of about 114 business plans (reviewed and developed by EDC) remain to be processed for the loan.
Through its BDS support, EDC has also provided business counselling services (on access to and availability of finance) to 118 BDS clients who have managed to access finance (56.9 million birr) from different financial institutions, such as MFIs, Commercial Banks, Saving and Credit Associations, WEDB, and other sources.