VisionFund Microfinance Institution has received a birr-denominated loan equivalent to 10 million US dollars from the International Finance Corporation (IFC), aimed at expanding lending to micro, small and medium-sized enterprises, particularly those led by women.

The financing is the first portion of a planned 30 million US dollars equivalent commitment, with IFC providing 20 million US dollars from its own account and the remaining 10 million US dollars expected from co-investors.

At least half of the funds will be directed to women-run businesses. The loan is facilitated through the World Bank’s International Development Association Private Sector Window, which supports blended finance and local currency lending in markets with limited options.

“This partnership represents a significant step for Ethiopia’s financial sector,” said Taye Chimdessa, chief executive of VisionFund. “It allows us to scale up support for entrepreneurs and extend financial services to communities that need them most.”

Alongside the financing, IFC will provide advisory support to enhance VisionFund’s risk management, business planning and responsible finance practices, as well as assist its transition into a licensed microfinance bank.

Ethiopis Tafara, IFC vice-president for Africa, said the partnership will deliver lasting benefits for smaller businesses while strengthening the country’s financial sector.

In the 2025 financial year, IFC committed 605 million US dollars to Ethiopia across sectors including agribusiness, manufacturing and telecommunications, with strategic priorities under its 2030 plan extending to infrastructure, housing, and pharmaceuticals.