DBE to Inject 31 Million Euro Concessional Credit into Conflict-Affected Enterprises

Addis Ababa, July 30, 2026 (ENA) — The Development Bank of Ethiopia (DBE) is set to disburse a 31 million Euro soft-loan package to be extended to micro, small and medium enterprises operating in conflict-affected regions across the country.

The European Union and the German Development Bank (KfW) provided a 31 million Euro grant to fund the low-interest credit line.

DBE Director of MSMEs and Green Economy Projects Tefera Befekadu stated that the financing will be made available under highly favorable interest rate structures.

Tefera explained that the soft loan will initially be channeled through four selected commercial banks and one microfinance institution to ensure efficient distribution.

The credit line targets enterprises located in the Afar, Amhara, and Tigray regions, spanning key sectors such as manufacturing, services, commerce, construction, and agro-processing.

Priority allocation under the financing scheme will be granted to enterprises founded or led by women and youth.

To establish the implementation framework, the "Post-Conflict MSMEs Recovery & Inclusion Baseline Validation Workshop," financed by the EU and KfW, took place at DBE headquarters.

DBE previously signed a strategic agreement with development partners in May 2026 to deliver concessional funding to businesses affected by regional conflict.

In related development, DBE Vice President for External Funds and Wholesale Financing Aida Erkihun highlighted that the bank has consistently delivered capacity building, financial backing, and technical assistance to enterprises.

She noted that previous intervention programs have significantly expanded financial access, enhanced operational efficiency, and driven economic growth among small and medium businesses.

The bank is placing special emphasis on rehabilitating and revitalizing small and medium enterprises situated in conflict-impacted zones.

Aida added that the economic rehabilitation program is designed to build resilient enterprises capable of fueling inclusive economic development.

Emphasizing the initiative's vital role in job creation and sustainable growth, the Vice President called on all stakeholders to foster strong collaboration to meet project objectives.

The announcement reaffirms DBE’s ongoing rollout of the 31 million Euro soft-loan package dedicated to reviving MSMEs in conflict-affected areas.