The United States Agency for International Development (USAID) and Awash Bank S.C. have announced a 6.4-million-dollar partnership to provide funding to microfinance institutions and small and medium-size agribusinesses in Ethiopia. Under the USAID Development Credit Authority (DCA) agreement, the programme targets expanding commercial bank lending into underserved areas. It also aims to provide private capital to help farmers and businesses intensify production and support Ethiopia’s efforts to modernise the agricultural sector. “We can accelerate economic growth at a macro level while creating a ripple effect that benefits farmers and their families at the same time,” said Sonila Hysi, deputy mission director at the USAID. The current engagement with USAID strengthens the Bank’s ability to provide loans to Ethiopian private microfinance institutions and small and medium-size enterprises operating in the agriculture sector, said Awash Bank’s CEO, Tsehay Shiferaw. Awash Bank has been a USAID partner on previous financing projects, which were accomplished without defaults.

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