The Mastercard Foundation, in collaboration with Kifiya Financial Technology (Kifiya), has unveiled an ambitious initiative aimed at revolutionizing financial access for micro, small, and medium enterprises (MSMEs) in Ethiopia. The Sustainable Access to Finance to Enable Entrepreneurship (SAFEE) program is set to mobilize $100 million, with the goal of unlocking $300 million from six participating banks, thereby enabling over 477,800 MSMEs to access uncollateralized digital credit products.
Building on the success of the Michu pilot program, which facilitated access to working capital for more than 148,000 MSMEs in just 14 months, SAFEE seeks to expand its reach and impact. This program is a testament to the ongoing efforts to bridge the financial inclusion gap in Ethiopia’s entrepreneurial landscape.
SAFEE will introduce a variety of financial products, including nano, micro, and small working capital, inventory credit, invoice financing, equipment financing, and buy-now-pay-later options. These products are designed to support MSMEs in urban, peri-urban, and rural areas, providing them with the necessary resources to grow and thrive.
One of the standout features of SAFEE is its focus on gender inclusion. The program aims to enable 425,000 young women to access financing for mobile devices, thereby enhancing their business capabilities and opportunities.
Over the next five years, SAFEE is projected to create 2.18 million job opportunities, with women constituting 80% of this workforce. Additionally, it will support other initiatives to extend credit access to a total of 3.65 million young people.
The initiative partners with six banks: Cooperative Bank of Oromia, Bunna Bank, Enat Bank, Amhara Bank, Wegagen Bank, and ZamZam Bank. These partnerships are expected to evolve, incorporating more financial institutions based on emerging needs and learnings from the program’s implementation.
This strategic move aims not only to drive systemic change within the financial sector but also to address the longstanding challenges faced by MSMEs in accessing uncollateralized financial services. By fostering innovative financial models and products, SAFEE will significantly contribute to Ethiopia’s economic growth and the empowerment of its entrepreneurial community.
Source: Capital Ethiopia
