Why Access to Capital Matters

Accessing adequate levels of finance is essential for job creation, increased productivity, and reducing poverty. Yet, Ethiopia’s capital markets are underdeveloped and underutilized due to multidimensional challenges such as collateral-heavy private loans, limited access to risk capital for early stage venture funding, and government policies that restrict foreign investment.
A concerted effort between government agencies, the private sector, and other development partners is key to creating a resilient financial market system that responds to Ethiopia’s socio-economic challenges and enables local and individual ownership of Ethiopia’s economic future.

Our Approach
Strengthening capital markets regulation
Providing technical assistance to support the development and review of policies, guidelines, and regulations that enable new capital markets products or structures.
Developing the capital markets ecosystem
Developing a well-functioning market infrastructure by building local securities and stock exchanges, and expanding access to credit enhancement facilities.
Enhancing SME access to capital
Creating adequate financing options for small and medium enterprises through increasing the availability of equity stocks, bonds, microloans, and working capital.