IFC and Dashen Bank Partner to Deliver Support to SMEs in Ethiopia

Addis Ababa, Ethiopia, February 17, 2026 -- IFC today announced a partnership with Dashen Bank S.C. to increase access to finance for small- and medium-sized businesses (SMEs) in Ethiopia, supporting economic growth and job creation in the country.

Under the partnership, IFC will provide a risk-sharing facility that will enable Dashen Bank to increase its lending to SMEs, with a particular focus on those in the agribusiness sector and on businesses that are women owned or led.

Increasing access to finance is critical for smaller businesses in Ethiopia, where IFC is working with partner banks and microfinance institutions to deliver the funding businesses need to grow, reach new markets, trade, purchase equipment, and create jobs.

Under the partnership announced today, IFC is committing $10 million in an unfunded risk-sharing facility to Dashen Bank, covering 50 percent of Dashen Bank’s credit risk on a targeted SME loan portfolio of up to $20 million equivalent. The IDA18 IFC-MIGA Private Sector Window (IDA PSW), a $2.5 billion World Bank initiative designed to catalyze investment by mitigating risks in certain markets, is providing a first-loss guarantee.

Today’s announcement builds on IFC’s ongoing advisory work with Dashen Bank, which is focused on strengthening the bank’s SME business model, expanding its sales capacity and market coverage, and enhancing its credit underwriting and broader risk management capabilities to support sustainable growth. 

Asfaw Alemus, Dashen Bank Chief Executive Officer, said, “As Dashen Bank, we are excited to announce our partnership with IFC through the Small Loan Guarantee Program. This ground-breaking, risk-sharing agreement represents a pivotal step in our support for SMEs and agricultural businesses in Ethiopia. By providing access to much-needed credit facilities, we aim to foster economic growth, create jobs, and enhance financial inclusion across the nation. With clear eligibility criteria, efficient processes, and focused portfolio management, this initiative not only enhances our capacity to support local enterprises but also mitigates risk, enabling us to focus on our core mission: fostering entrepreneurship and promoting sustainable development. Alongside IFC, we are confident we will lay the foundation for a brighter economic future for our communities.”

Ethiopis Tafara, IFC Vice President for Africa, said, “This initiative will expand access to finance for MSMEs, with a particular focus on agri‑related enterprises and women‑owned and women‑led businesses. Today’s signing reflects our shared ambition with Dashen Bank to build a more inclusive and resilient financial system in Ethiopia—one that unlocks opportunity and empowers entrepreneurs across the country.”

IFC has committed $605 million in fiscal year 2025 in Ethiopia across telecoms, agribusiness and manufacturing. Key focus sectors, as aligned with IFC’s 2030 strategy, include agribusiness, infrastructure (renewable energy, telecom and logistics), manufacturing (pharmaceuticals and sectors supporting the construction industry), and housing.