Climate Financing Garners Little Attention

Apr 3 , 2023


[ssba-buttons]

Ethiopia has 14 times less climate finance than it requires, according to research conducted by FSD Africa partnering with Climate Policy Initiative (CPI). An average of 1.7 billion dollars, which translates to seven percent of the 25.3 billion dollars Ethiopia's estimated needs were committed towards climate change-related activities three years ago. The figure is less than two percent of the country's GDP. This was disclosed at a knowledge series event hosted by FSD Ethiopia at Sheraton Addis Hotel two weeks ago. About 92pc of the climate finance landscape in Ethiopia is funded by international public financiers of which 70pc is gained through grants while the rest is covered by domestic and international private investors. Based on the findings, the paper made policy and regulatory recommendations for the National Bank of Ethiopia to support the development of capital markets, address forex shortages, establish a favourable collateral policy for smallholder farmers and small and medium-sized enterprises (SMEs), offer favourable lending terms to microfinance institutions, and expand mobile banking services. Established in 2021, FSD Ethiopia is a market facilitator that supports and works with the government, the private sector and civil society organizations in the areas of financial inclusion, access to capital, and climate finance, to address the root causes of financial system failures.


Radar

Milkii App Disburses 25 Million Br in Collateral-Free Loans in Two Months

Oromia Bank's new collateral-free digital lending app, Milkii, has disbursed 25 million Br in loans without requiring collateral. Of this, 16 million Br has already been repaid, generating 1.4 million Br in revenue within just two months. Developed in partnership with Quantum Technology PLC, the app plans to make lending more accessible and inclusive, aligning with Oromia Bank's contribution to the Digital Ethiopia initiative. According to a press release, Milkii promotes financial inclusi...


Radar

Ethiopia Partners with UK to Ease Shipping Bottlenecks

The Ethiopian Freight Forwarders & Shipping Agents Association (EFFSAA) and the British International Freight Association (BIFA) signed a memorandum of understanding (MoU) on May 27, 2025, at Hyatt Regency Addis Abeba, to address skills gaps, customs delays, and corridor inefficiencies in the freight and logistics sector. The partnership focuses on technical cooperation, training, and regulatory reform. With over 90pc of trade dependent on the Djibouti corridor, rising congestion, customs...


Radar

Education Authority Sanctions Mishqen College for Rule Violations

The Education & Training Authority has issued a decisive directive last week, mandating legal action against Mishqen College for persistently defying regulatory orders and unlawfully continuing to offer higher education services. Mishqen College had previously been licensed to conduct undergraduate distance learning programs across multiple regions from 2019 to 2022. However, after serious regulatory breaches, the institution was ordered to cease all instruction, complete pending academic...