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Ethiopian MSE Credit Guarantee Facility

Redesign of the Regional Government MSE credit guarantee facility into a National Enterprise Support Trust for Micro and Small Enterprises (MSEs) nation-wide


YEARS

2016

CLIENT DESCRIPTION

DfID, through the Enterprise Partners project in Ethiopia, finances facilitation and consulting engagements to strengthen the economic base of Ethiopia in a broad range of relevant sectors.

CLIENT'S OBJECTIVE

The National Bank of Ethiopia requested a review of the regional government credit guarantee facility for MSEs, initiated in 2011, with a view to re-designing the programme into a national platform. The regional facility had experienced high delinquency rates and management problems, which also needed to be addressed.

Results

BUSINESS RESULTS

Review of the results and operational issues of the existing regional MSE guarantee facility to date.

Re-design of the facility to become a National platform for serving the MSE sector.

Correction of previous operational problems and inefficiencies via the new design.

Activities

In-depth field study of performance and operational issues with the facility in the 5 main administrative regions of Ethiopia.

Proposal for re-design into a national platform based on international best practices of MSE guarantee support facilities.

Creation of the manual governing operations of the new, national credit guarantee facility.

Ethiopia