IFC will provide a $10 million unfunded risk-sharing facility to Dashen Bank for SME loans.
Dashen Bank can extend up to $20 million in SME lending under the facility.
Facility will cover 50% of credit risk on targeted SME loan portfolio.
Priority sectors include agribusiness and women-led enterprises in Ethiopia.
Support comes via IDA18 IFC-MIGA Private Sector Window first-loss guarantee.
Dashen Bank builds on ongoing IFC advisory partnership on SME operations.
Why it matters?
The risk-sharing facility increases Dashen Bank’s capacity to lend SMEs, emphasizing finance access for agribusiness and women-led enterprises, directly affecting credit availability for small enterprises in Ethiopia.