Ethiopia has a vast economy in terms of various sectors such as online games, medical science, business sectors etc. being involved to contribute for the growth and the overall development. Especially the MSE’s are contributing a major part for the economy and this is a major concern that they face less access for the financing options. The main reason for this lack of reach is that people have less awareness about the options available for the financing. This prevents them from getting improved and enhanced facilities for the production, supply, infrastructure and other areas as well. This post tries to focus on the loan conditions of the Ethiopia and what are the positive possibilities in this area to work upon.

When the Government of Ethiopia realized that the commercial banks and other financial organizations were doing not so good in profitable way to provide financial information and the services to the households from the weaker areas, they established a legal platform for the microfinance institutions to support the deprived areas with better finance options. This step by the Ethiopian government was taken to improve the micro and small enterprises as they know that upliftment of these sectors will surely going to produce in turn the more for the economy.

The DBE, also the development bank of Ethiopia has launched a program for minimizing the rural poverty. This ‘Rural Financial Intermediation Program’ is an investment based on the sector which focuses on the sustainable financial system. The ultimate objective of this program is to increase the income and the assets of the weak households via improved production to alleviate the poverty from rural areas. Well, when we talk of DBE, its primary objective is to support finance for the industrial, agricultural and other growth needed projects those are purely involved in production of the exportable commodities. The other crucial sectors that require the need of foreign markets are the textile, leather products, manufacturing, and food processing industries along with the horticultural crops (like flowers and the vegetables).

Another segment of the microfinance in the Ethiopia is the Amhara Credit and Saving Institution (ACSI) which has a big support in providing small loans to the people for improving the agricultural conditions and other required areas which are lacking the development and thus preventing the economy from being flourishing. This ultimately affects the entire economy from the growth as if the small sectors will not expand, they cannot contribute to the country’s development and overall growth.