Small and Medium Enterprise Finance Project (SMEFP) Overview
The Small and Medium Enterprise Finance Project (SMEFP), coordinated by Ethiopian Enterprise Development (EED), was launched to address the financing gap for SMEs, particularly in the manufacturing sector. The project was developed following a 2014 study identifying SMEs as more credit-constrained than micro and large enterprises. In partnership with the World Bank and European Investment Bank, SMEFP provides capital goods lease finance, working capital loans, and business development services. The project aims to enhance SME access to finance, promote industrialization, and boost employment opportunities in Ethiopia
The component is being implemented by the Development Bank of Ethiopia with a budget of $ 269 million and an additional $ 180 million is added to the fund.The credit line of the project has two lending windows:
a) A leasing window that provides capital goods lease finance to SMEs directly through
the Development Bank of Ethiopia /DBE/
b) A working capital window that provides wholesale finance to banks and microfinance
institutions for on-lending to eligible SMEs.
This Component is carrying out by the National Bank of Ethiopia and the Project Coordination Office with a budget of $ 1.87 million. The activities under this framework are “Centralized electronic collateral registry and diagnostic survey on insolvency and creditors/debtors regime”. There is also additional activity to be implemented by the National Bank of Ethiopian /NBA/ and the Project Coordination Office which is earmarked $ 3 million for the development of Movable Asset Based Lending and strengthening the credit system in the additional finance.
This component aims to build firm capabilities through selected value chains and broaden SMEs’ access to market by implementing a firm capability-building program and e-commerce platform in Ethiopia. It is
implementing by the Project Coordination Office and Ethiopian Postal Service /EPS/. The budget for the parent project is $ 2.26 million, $ 15 million allocated for the additional finance.
It is implementing by theProject Coordination Office and has a budget of $ 2.86 million in the parent project; $ 2 million is earmarked for additional finance.
EED aims to enhance the competitiveness of Ethiopian enterprises, create meaningful employment opportunities, and contribute to the nation's overall economic growth and development.