US Embassy Addis Ababa
December 13, 2019
Addis Ababa, – The U.S. Agency for International Development (USAID) and Awash Bank have announced a new partnership that will make up to US $6.4 million in financing available to microfinance institutions and small- and medium-sized agricultural businesses in Ethiopia. Under a USAID Development Credit Authority (DCA) agreement, this program will expand commercial bank lending into underserved areas and provide the private capital needed to help farmers and businesses intensify production, and support Ethiopia’s efforts to modernize its agricultural sector.
Private capital sources are essential to enable local microfinance institutions to expand lending to individuals and small businesses, particularly smallholder farmers and Productive Safety Net Program (PSNP) clients. In addition, this partnership will also support Awash Bank’s direct lending to small and medium enterprises in the agriculture sector, where access to credit remains low despite contributing 34 percent of Ethiopia’s GDP and employing approximately 70 percent of the total labor force.
“When we talk about smart investments and getting the most value for our money, investments in Ethiopia’s agricultural sector do exactly that. We can accelerate economic growth on a macro level while creating a ripple effect that benefits farmers and their families at the same time,” said USAID Deputy Mission Director Sonila Hysi.
“We believe that the current engagement with USAID strengthens the bank’s ability to provide loans to private Ethiopian microfinance institutions and small and medium-sized enterprises operating in the agriculture sector. In a bid to support the agricultural sector and align with the government’s strategic focus areas, Awash Bank has also made a significant reduction in the lending interest rate of agricultural loans,” said Awash Bank’s CEO, Ato Tsehay Shiferaw.
Awash Bank S.C. has been a USAID Development Credit Authority (DCA) partner on previous financing projects, which were accomplished successfully without any defaults on loans. Awash Bank, cognizant of the potential of the small and medium-enterprise (SME) segment for the overall development of the nation’s economy, has established the SME Banking operation unit under a directorate level.
The United States is the largest bilateral donor to Ethiopia and has invested approximately $4 billion in development and humanitarian assistance over the past five years to help people across the country lead healthier and more prosperous lives. Awash Bank, a leader in small and medium enterprise banking in Ethiopia, plans to continue to grow its customer base as it aims to become one of the top ten private commercial banks in East Africa.
Join the conversation. Like borkena on Facebook and get Ethiopian News updates regularly. As well, you may get Ethiopia News by following us on twitter @zborkena
The magnanimous USAID had continued to provide generousity to Ethiopia since Ethiopian diasporas in USA kept proving to be hard working honest good Samaritans in the American society.
According to statistics released by IMF While the USA population represents only 4.4% percent of the total world population , USA houses 22% percent of the world’s prisoners.
In the police of the world superpowerfull
country USA out of every 100,000 black people 243 of them are imprisoned . In total 2.2 million people are imprisoned in USA.
Diasporas are indirectly controlled by TPLF funded criminals amongst themselves , who are against those diasporas that made it their mission to repatriate illicit assets acquired through corrupt means .