Ethiopian banks, Inter-congregational network sign MoU to finance small businesses of conflict affected people

Addis Ababa, July 9, 2023 (FBC) – As part of a three-year project sponsored by the Ethiopian Ministry of Labour and Skills and the MasterCard Foundation, a network of religious congregations in Ethiopia supported by the Global Solidarity Fund signs an agreement with two local banks to provide microcredit to internally displaced persons, returning migrants and refugees, to help them start their own businesses.

The inter-congregational network recently signed an agreement with two national banks, Hibret Bank and Elebat Solutions, to support them in starting up and growing their businesses.

Supervised by the Ethiopian Ministry of Labour and Skills, the Memorandum of Understanding foresees the implementation of an innovative financial inclusion project for migrants and vulnerable people living in Addis Ababa.

The project will provide microlending services to organised groups of beneficiaries.

The two national banks are part of a consortium to implement the innovative Tila project, a three-year inclusive scheme launched in 2021 which aims to support 42,000 vulnerable people, including women in rural Ethiopia, internally displaced persons, refugees, homeless youths and people with disabilities.

The project is a joint venture between the Ethiopian Ministry of Labour & Skills and the MasterCard Foundation, implemented by five local implementers.

On the signing of the MoU Biruktawit Belay, grants and partnerships manager at the Job Creation Commission (Jcc) said that the agreement is in line with the Ministry’s commitment to provide job opportunities “for our vulnerable communities, young people, women, refugees, IDPs”, and give them the chance “to get an income to support their families, their children and feel comfortable, especially in a new country like Ethiopia”, she said adding that the project of the Gsf and the inter-congregational consortium “is also in line with our strategy”.