Evaluation of Guarantee Instrument and Technical Assistance Offered to Enat Bank to Increase Access to Capital For Women-Owned/Managed Small and Medium Enterprises in Ethiopia

Summary

This report presents the findings of the mid-term evaluation of the Swedish-supported Enat Bank Loan Guarantee Facility (LGF) in Ethiopia. Commissioned by Sida and undertaken by Tana Copenhagen, it assesses the performance of the facility thus far and provides recommendations for future improvement of the support to women-led Small-Medium Enterprises (SMEs). LGF is a key component of the operationalization of Sida’s new development assistance strategy in Ethiopia. The team found that the LGF only supports women-owned SMEs in the formal sectors, and the number of loans processed is still relatively low. As such, including enterprises located in the informal sector or with creditworthiness challenges would be a critical step in significantly expanding the access of women-owned SMEs to financing, and subsequently, transitioning many into the formal sector by providing crucial support for formalization, financial literacy, bookkeeping and tax status regulations. Recommendations are given for Sida to continue its support of the LGF, with a focus on expansion and programme design, in an effort for women entrepreneurs to experience economic growth and financial freedom.

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