Ethiopia: SME Finance Project

Abstract*

The development objective of the Small and Medium Enterprise (SMEs) Finance Project for Ethiopia is to increase access to finance for eligible small and medium enterprises in the recipient’s territory. The project comprises of four components. The first component, financial services to SMEs is to establish a credit facility providing access to finance for (a) working capital and leasing finance for participating financial institutions (PFIs) which... Show More

Development Objective

The project development objective is to increase access to finance and build firm capabilities for eligible small and medium enterprises in Ethiopia, with a focus on responding to the COVID-19 pandemic.

Key Details

Project Details

Project ID
P148447
Status
Active
Team Leader
Mengistu Achew , Marlon Rawlins, Bisrat Mekonnen
Borrower 2
Ministry of Finance

Country
Ethiopia
Disclosure Date
October 28, 2015
Approval Date
(as of board presentation)
May 17, 2016
Effective Date
September 1, 2016

Total Project Cost 1
US$ 276.00 million
Implementing Agency
Development Bank of Ethiopia,National Bank of Ethiopia,Federal Small and Medium Manufacturing Industry Promotion Authority
Region
Eastern and Southern Africa
Fiscal Year 3
2016

Commitment Amount
US$ 276.00 million
Environmental Category
F
Environmental and Social Risk
N/A
Closing Date
August 31, 2025

Consultant Services required
TBD
Last Stage Reached
BANK APPROVED
Last Update Date
January 30, 2024

Associated Projects
P175045

Notes
1. Total project cost includes funding from World Bank and non-bank sources in US$ millions. Active and Closed projects show current commitments. Proposed (pipeline) and dropped projects show the forecast amount. The commitment amount for projects in the pipeline is indicative and may be modified during the project preparation.
2. Borrower refers to the Borrower of a Loan or Recipient of a Grant.
3. ”Fiscal Year” is the fiscal year in which the project was approved (or dropped if the status is dropped). The World Bank's fiscal year is from July 1 - June 30. For example, a fiscal year of 1996 corresponds to July 1, 1995 - June 30, 1996.

Sectors

Themes

FY17 - Finance

FY17 - Financial Infrastructure and Access35%
- FY17 - MSME Finance35%
FY17 - Financial Stability30%
- FY17 - Financial Sector oversight and policy/banking regulation & restructuring30%

FY17 - Private Sector Development

FY17 - Enterprise Development35%
- FY17 - MSME Development35%
FY17 - Jobs100%

Project Map

Interactive Map

Finances

Financing Plan (US$ Millions)

Financier	Commitments
EC: European Investment Bank	76.00
IDA Credit	200.00

Total Project Financing (US$ Millions)

Product Line	IBRD/IDA
IBRD Commitment	N/A
IDA Commitment	200.00
IBRD + IDA Commitment	200.00

Lending Instrument
Grant Amount	76.00
Total Project Cost**	276.00

Summary Status of World Bank Financing (US$ Millions) as of March 31, 2025

No data available.

Detailed Financial Activity as of March 31, 2025

Download:

Period	Financier	Transaction Type	Amount (US$)
Aug 22, 2017	IDA-57930	Loan Disb	12,000,000.00
Oct 15, 2017	IDA-57930	Int Charges	4.58
Oct 15, 2017	IDA-57930	Int Charges	4.58
Oct 15, 2017	IDA-57930	Int Charges	1,943.31
Oct 15, 2017	IDA-57930	Int Charges	1,943.31
Apr 15, 2017	IDA-57930	Int Charges	683.47
Apr 15, 2017	IDA-57930	Int Charges	683.47
Feb 9, 2017	IDA-57930	Loan Disb	500,000.00
Aug 16, 2022	IDA-57930	Loan Disb	499,715.00
Feb 11, 2022	IDA-68640	Loan Disb	10,000,000.00
Aug 3, 2022	IDA-57930	Loan Disb	499,332.06
Aug 25, 2022	IDA-57930	Loan Disb	499,722.75
Dec 9, 2021	IDA-57930	Loan Disb	251,798.64
Apr 7, 2022	IDA-57930	Loan Disb	100,000.01
Apr 7, 2022	IDA-57930	Loan Disb	192,311.72
Jun 7, 2022	IDA-68640	Loan Disb	24,794,638.00
Apr 15, 2022	IDA-57930	Int Charges	3,267.64
Apr 15, 2022	IDA-57930	Int Charges	3,267.64
Apr 15, 2022	IDA-57930	Int Charges	723,922.56
Apr 15, 2022	IDA-57930	Int Charges	723,922.56
Apr 15, 2022	IDA-68640	Int Charges	12,992.26
Apr 15, 2022	IDA-68640	Int Charges	12,992.26
Sep 29, 2021	IDA-57930	Loan Disb	3,173,736.80
Jun 14, 2022	IDA-57930	Loan Disb	223,307.30
Apr 1, 2022	IDA-57930	Loan Disb	144,800.00
Oct 15, 2021	IDA-57930	Int Charges	717,097.20
Oct 15, 2021	IDA-57930	Int Charges	717,097.20
Oct 15, 2021	IDA-57930	Int Charges	4,784.16
Oct 15, 2021	IDA-57930	Int Charges	4,784.16
Oct 19, 2021	IDA-57930	Loan Disb	323,519.50
Jun 21, 2021	IDA-57930	Loan Disb	107,865.06
Apr 21, 2021	IDA-57930	Loan Disb	14,583,974.00
Apr 16, 2021	IDA-57930	Int Charges	2,547.89
Apr 16, 2021	IDA-57930	Int Charges	2,547.89
Apr 16, 2021	IDA-57930	Int Charges	636,852.44
Apr 16, 2021	IDA-57930	Int Charges	636,852.44
Jun 22, 2021	IDA-57930	Loan Disb	10,209,654.00
Nov 30, 2020	IDA-57930	Loan Disb	15,223,192.00
Jun 4, 2021	IDA-57930	Loan Disb	466,601.70
Jun 4, 2021	IDA-57930	Loan Disb	228,719.86
Jul 27, 2021	IDA-57930	Loan Disb	-2,713.69
Oct 20, 2020	IDA-57930	Int Charges	2,861.93
Oct 20, 2020	IDA-57930	Int Charges	2,861.93
Oct 20, 2020	IDA-57930	Int Charges	571,629.90
Oct 20, 2020	IDA-57930	Int Charges	571,629.90
Apr 15, 2020	IDA-57930	Int Charges	419,281.10
Apr 15, 2020	IDA-57930	Int Charges	419,281.10
Apr 15, 2020	IDA-57930	Int Charges	22,457.20
Apr 15, 2020	IDA-57930	Int Charges	22,457.20
Jun 8, 2020	IDA-57930	Loan Disb	12,218,604.00
Jun 25, 2020	IDA-57930	Loan Disb	100,250.00
Apr 7, 2020	IDA-57930	Loan Disb	18,255,386.00
Jan 28, 2020	IDA-57930	Loan Disb	15,875,044.00
Jan 24, 2020	IDA-57930	Loan Disb	189,883.81
Oct 15, 2019	IDA-57930	Int Charges	7,837.33
Oct 15, 2019	IDA-57930	Int Charges	7,837.33
Oct 15, 2019	IDA-57930	Int Charges	321,674.78
Oct 15, 2019	IDA-57930	Int Charges	321,674.78
Aug 8, 2019	IDA-57930	Loan Disb	246,500.30
Mar 11, 2019	IDA-57930	Loan Disb	74,576.68
Aug 16, 2019	IDA-57930	Loan Disb	19,052,000.00
Apr 17, 2019	IDA-57930	Int Charges	13,871.36
Apr 17, 2019	IDA-57930	Int Charges	13,871.36
Apr 17, 2019	IDA-57930	Int Charges	243,455.23
Apr 17, 2019	IDA-57930	Int Charges	243,455.23
Apr 22, 2019	IDA-57930	Loan Disb	10,773,246.00
Jun 11, 2019	IDA-57930	Loan Disb	195,476.25
Feb 15, 2019	IDA-57930	Loan Disb	5,667,756.50
Dec 21, 2018	IDA-57930	Loan Disb	6,966,768.00
Oct 15, 2018	IDA-57930	Int Charges	179,584.33
Oct 15, 2018	IDA-57930	Int Charges	179,584.33
Oct 15, 2018	IDA-57930	Int Charges	7,860.15
Oct 15, 2018	IDA-57930	Int Charges	7,860.15
Feb 28, 2019	IDA-57930	Loan Disb	80,202.20
Nov 28, 2018	IDA-57930	Loan Disb	92,394.26
Nov 19, 2018	IDA-57930	Loan Disb	116,380.02
Feb 12, 2019	IDA-57930	Loan Disb	4,011,279.00
May 4, 2018	IDA-57930	Loan Disb	10,314,444.00
Aug 17, 2018	IDA-57930	Loan Disb	9,848,653.00
Jun 8, 2018	IDA-57930	Loan Disb	134,318.98
Mar 27, 2018	IDA-57930	Loan Disb	22,400,000.00
Feb 12, 2018	IDA-57930	Loan Disb	5,600,000.00
Apr 15, 2018	IDA-57930	Int Charges	13,690.57
Apr 15, 2018	IDA-57930	Int Charges	13,690.57
Apr 15, 2018	IDA-57930	Int Charges	56,060.68
Apr 15, 2018	IDA-57930	Int Charges	56,060.68
May 17, 2016	IDA-57930	Loan Commitment	200,000,000.00
Apr 2, 2021	IDA-68640	Loan Commitment	200,000,000.00
Jun 3, 2024	IDA-68640	Loan Disb	493,547.60
Jul 11, 2024	IDA-68640	Loan Disb	499,999.28
Apr 15, 2024	IDA-68640	Int Charges	5,543.06
Apr 15, 2024	IDA-68640	Int Charges	5,543.06
Mar 26, 2024	IDA-68640	Loan Disb	430,964.47
Feb 14, 2024	IDA-68640	Loan Disb	31,136,972.00
Oct 30, 2023	IDA-68640	Int Charges	8,879.47
Oct 30, 2023	IDA-68640	Int Charges	343,218.47
Oct 30, 2023	IDA-68640	Int Charges	343,218.47
Nov 27, 2023	IDA-68640	Loan Disb	499,813.30
Jul 25, 2024	IDA-68640	Loan Disb	476,591.78
Apr 15, 2024	IDA-57930	Loan Repay	58,016.74
Apr 15, 2024	IDA-57930	Loan Repay	2,920,172.80
Apr 15, 2024	IDA-57930	Int Charges	930.69
Apr 15, 2024	IDA-57930	Int Charges	930.69
Apr 15, 2024	IDA-57930	Int Charges	681,260.90
Apr 15, 2024	IDA-57930	Int Charges	681,260.90
Apr 15, 2024	IDA-68640	Int Charges	477,892.78
Apr 15, 2024	IDA-68640	Int Charges	477,892.78
Oct 18, 2023	IDA-68640	Loan Disb	499,962.75
Oct 15, 2023	IDA-57930	Int Charges	-1.24
Oct 15, 2023	IDA-57930	Int Charges	1.24
Dec 22, 2023	IDA-68640	Loan Disb	499,568.97
Dec 22, 2023	IDA-68640	Loan Disb	499,954.97
Dec 29, 2023	IDA-68640	Loan Disb	420,692.00
Nov 7, 2023	IDA-68640	Loan Disb	499,467.53
Oct 30, 2023	IDA-57930	Int Charges	771.97
Oct 30, 2023	IDA-57930	Int Charges	771.97
Oct 30, 2023	IDA-57930	Int Charges	689,972.56
Oct 30, 2023	IDA-57930	Int Charges	689,972.56
Nov 13, 2023	IDA-68640	Loan Disb	499,996.38
Oct 30, 2023	IDA-57930	Int Charges	26,888.47
Oct 30, 2023	IDA-57930	Int Charges	26,888.47
Oct 30, 2023	IDA-57930	Loan Repay	2,967,624.00
Oct 30, 2023	IDA-68640	Int Charges	8,879.47
Mar 31, 2023	IDA-57930	Loan Cancel	6,181.22
Oct 18, 2023	IDA-68640	Loan Disb	24,226,778.00
Apr 28, 2023	IDA-57930	Loan Repay	2,927,067.50
Apr 28, 2023	IDA-57930	Int Charges	692,205.40
Apr 28, 2023	IDA-57930	Int Charges	692,205.40
Apr 28, 2023	IDA-68640	Int Charges	258,419.61
Apr 28, 2023	IDA-68640	Int Charges	258,419.61
Dec 14, 2022	IDA-57930	Loan Disb	128,583.14
Apr 7, 2023	IDA-68640	Loan Disb	479,074.10
Mar 27, 2023	IDA-68640	Loan Disb	18,953,052.00
Apr 15, 2023	IDA-57930	Loan Repay	121,220.89
Apr 15, 2023	IDA-68640	Int Charges	3,331.70
Apr 15, 2023	IDA-68640	Int Charges	3,331.70
Oct 5, 2022	IDA-57930	Loan Disb	11,889.97
Oct 15, 2022	IDA-57930	Loan Repay	2,869,845.00
Sep 7, 2022	IDA-57930	Loan Disb	108,600.00
Oct 15, 2022	IDA-57930	Int Charges	683,871.70
Oct 15, 2022	IDA-57930	Int Charges	683,871.70
Oct 15, 2022	IDA-57930	Loan Repay	18,236.16
Oct 15, 2022	IDA-68640	Int Charges	96,571.50
Oct 15, 2022	IDA-68640	Int Charges	96,571.50
Oct 15, 2022	IDA-68640	Int Charges	327.47
Oct 15, 2022	IDA-68640	Int Charges	327.47
Oct 18, 2022	IDA-68640	Loan Disb	500,000.00
Sep 7, 2022	IDA-57930	Loan Disb	138,588.89
Oct 5, 2022	IDA-57930	Loan Disb	1,176,339.00
Nov 4, 2022	IDA-68640	Loan Disb	37,500,000.00

Footnotes

Ratings

IMPLEMENTATION RATINGS

Name	Review	Date
Procurement	Moderately Satisfactory	2024-07-13
Overall Safeguards Rating	Moderately Satisfactory	2024-07-13
Progress towards achievement of PDO	Satisfactory	2024-07-13
Project Management	Moderately Satisfactory	2024-07-13
Monitoring and Evaluation	Satisfactory	2024-07-13
Overall Implementation Progress (IP)	Satisfactory	2024-07-13
Financial Management	Moderately Satisfactory	2024-07-13

COMPLETION RATINGS

No data available.

INDEPENDENT EVALUATION RATINGS

No data available.

Results Framework

PROJECT DEVELOPMENT OBJECTIVE INDICATORS

INDICATOR		BASELINE	CURRENT	TARGET

Volume of financial support to SMEs under the credit facility and DRF Value 218000000.00 371000000.00 548000000.00
Date December 28, 2020 May 31, 2023 August 31, 2025
Comment
Number of SMEs reached with financial services under the credit facility and DRF. Value 1452.00 4374.00 4200.00
Date December 28, 2020 May 31, 2023 August 31, 2025
Comment
Portfolio quality under the credit facility Value 6.00 3.00 5.00
Date December 28, 2020 May 31, 2023 August 31, 2025
Comment
Number of SMEs served with business development service Value 218.00 2112.00 1500.00
Date December 28, 2020 May 31, 2023 June 30, 2025
Comment

INTERMEDIATE RESULTS INDICATORS

INDICATOR		BASELINE	CURRENT	TARGET

Number of loans/ leases disbursed to SMEs under the credit facility Value 1853.00 4620.00 5200.00
Date December 28, 2020 May 31, 2023 August 31, 2025
Comment
Insolvency regime revised and approved by the Parliament Value No Yes Yes
Date August 17, 2016 May 31, 2023 August 31, 2025
Comment
Number of SMEs that received training through a BDS Program under the project Value 218.00 2112.00 1500.00
Date December 28, 2020 May 31, 2023 August 31, 2025
Comment
Collateral registry operationalized. Value No Yes Yes
Date August 17, 2016 May 31, 2023 August 31, 2025
Comment
Citizen engagement survey conducted Value No No Yes
Date April 20, 2016 May 31, 2023 August 31, 2025
Comment
Number of women owned SMEs that received business development service Value 70.00 70.00 500.00
Date February 5, 2021 February 5, 2021 August 31, 2025
Comment
Strengthened capacity of DBE for risk assessment and management of innovative financial products. (Yes/No) Value No Yes Yes
Date December 28, 2020 May 31, 2023 August 31, 2025
Comment
Number of supported SMEs that subscribed to the e-commerce platform Value 0.00 0.00 100.00
Date February 5, 2021 January 14, 2022 August 31, 2025
Comment
Percentage of women-owned SMEs benefiting from the credit line and DRF Value 14.00 14.00 28.00
Date December 28, 2020 December 28, 2020 August 31, 2025
Comment
Business Information Center launched Value No No Yes
Date February 5, 2021 June 30, 2022 June 30, 2025
Comment

Number of federal and regional investment and trade support institution staff trained on export promotion, business diplomacy and related topics	Value	0.00	0.00	50.00
	Date	February 5, 2021	January 14, 2022	August 31, 2025
	Comment

Private participation model for management and operation of SME market and production sites developed Value No No Yes
Date February 5, 2021 January 14, 2022 August 31, 2025
Comment

Volume of financial support to SMEs under the credit facility and DRF	Value	218000000.00	371000000.00	548000000.00
	Date	December 28, 2020	May 31, 2023	August 31, 2025
	Comment

Number of SMEs reached with financial services under the credit facility and DRF.	Value	1452.00	4374.00	4200.00
	Date	December 28, 2020	May 31, 2023	August 31, 2025
	Comment

Portfolio quality under the credit facility	Value	6.00	3.00	5.00
	Date	December 28, 2020	May 31, 2023	August 31, 2025
	Comment

Number of SMEs served with business development service	Value	218.00	2112.00	1500.00
	Date	December 28, 2020	May 31, 2023	June 30, 2025
	Comment

Number of loans/ leases disbursed to SMEs under the credit facility	Value	1853.00	4620.00	5200.00
	Date	December 28, 2020	May 31, 2023	August 31, 2025
	Comment

Collateral registry operationalized.	Value	No	Yes	Yes
	Date	August 17, 2016	May 31, 2023	August 31, 2025
	Comment

Citizen engagement survey conducted	Value	No	No	Yes
	Date	April 20, 2016	May 31, 2023	August 31, 2025
	Comment

Number of women owned SMEs that received business development service	Value	70.00	70.00	500.00
	Date	February 5, 2021	February 5, 2021	August 31, 2025
	Comment

Percentage of women-owned SMEs benefiting from the credit line and DRF	Value	14.00	14.00	28.00
	Date	December 28, 2020	December 28, 2020	August 31, 2025
	Comment

Business Information Center launched	Value	No	No	Yes
	Date	February 5, 2021	June 30, 2022	June 30, 2025
	Comment

Ethiopia: SME Finance Project

Abstract*

Development Objective

Key Details

Project Details

Sectors

Themes

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Project Map

Finances

Financing Plan (US$ Millions)

Total Project Financing (US$ Millions)

Summary Status of World Bank Financing (US$ Millions) as of March 31, 2025

Detailed Financial Activity as of March 31, 2025

Ratings

IMPLEMENTATION RATINGS

COMPLETION RATINGS

INDEPENDENT EVALUATION RATINGS

Results Framework

PROJECT DEVELOPMENT OBJECTIVE INDICATORS

INTERMEDIATE RESULTS INDICATORS