USAID, Awash Bank Announce 6.4 Mn USD Credit to Agriculture Enterprises

Addis Ababa December 13/2019 The U.S. Agency for International Development (USAID) and Awash Bank have announced a new partnership that will make up to 6.4 million USD available to micro-finance institutions and small-and medium-size agricultural businesses in Ethiopia.

The program will play vital role to help Ethiopian farmers and modernize the agricultural sector, according to a press release of the US Embassy.  

According to the press release, “this will expand commercial bank lending to under served areas and provide the private capital needed to help farmers and businesses intensify production, and support Ethiopia’s efforts to modernize its agricultural sector.”  

Noting the importance of private capital sources to local micro-finance institutions, it further pointed out that this partnership will also support Awash Bank’s direct lending to small and medium enterprises in the agriculture sector, where access to credit remains low despite contributing 34 percent of Ethiopia’s GDP and employing approximately 70 percent of the total labor force.

“When we talk about smart investments and getting the most value for our money, investments in Ethiopia’s agricultural sector do exactly that. We can accelerate economic growth on a macro level while creating a ripple effect that benefits farmers and their families at the same time,”  the release quoted USAID Deputy Mission Director Sonila Hysi as saying.

On his part Awash Bank CEO, Tsehay Shiferaw said the partnership strengthens the bank's  ability to provide loans for adequate finance the transformation of the agricultural sector.