Ethiopia has received a 110 million euro loan from the European Investment Bank to expand financial access for micro-enterprises and small businesses across rural areas. The agreement was signed on February 3, 2025, by Ahmed Shide, Ethiopia’s minister of finance, and Diederick Zambon, head of division for public sector operations at the European Investment Bank.

The financing will support the Rural Finance and Development Project, a programme aimed at strengthening rural financial systems by channeling credit to microfinance institutions, cooperatives, and other local lenders through the Development Bank of Ethiopia. By increasing the availability of loans to farmers and small-scale entrepreneurs, the project seeks to address long-standing gaps in access to formal finance in Ethiopia’s countryside.

The European Investment Bank loan is part of a broader multi-donor package. The International Fund for Agricultural Development is contributing a grant of 35.1 million US dollars alongside a loan of 4.8 million US dollars. Additional support from the European Union includes a technical assistance grant of 8.5 million euros and a separate grant of 8.26 million euros, both implemented by IFAD.

The Rural Finance and Development Project represents a continuation of Ethiopia’s partnership with international development financiers, including the European Investment Bank, aimed at promoting sustainable agricultural and economic practices.