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Ethiopia Signs USD 50 million Yen loan agreement

 

Ethiopia signs Exchange of Notes and the Loan Agreement, of up to a total of 5.5 billion Japanese Yen, approximately USD 50 million for Women Entrepreneurship Development Project. The ceremony will took place today from 1:45pm to 2:30pm at Ministry of Finance and Economic Cooperation. The documents were signed between H.E. Mr. Admasu Nebebe, State Minister for Finance and Economic Cooperation, H.E. Mr. Shinichi Saida, Ambassador of Japan to Ethiopia and, and Mr. Kimiaki Jin, Chief Representative of Japan International Cooperation Agency (JICA).

This will be the first ODA concessional Yen loan project in last 43 years between Japan and Ethiopia which were, in 1973 (Underground Water Resource Development) and 1974 (Addis Ababa International Airport Terminal Expansion) respectively. The project signed today is aimed to target women in Ethiopia, with a view to enhance women entrepreneurship activities in line with GTP 2 partnered by World Bank, DFID-funded Private Enterprise Program for Ethiopia (EP/WEDP), Global Affairs Canada (GAC), Italian Agency for Development Co-operation (AICS).

This project is expected to contribute to increase the earnings and employment of  micro and small enterprises owned or partly owned by women entrepreneurs in the targeted six cities currently by improving their business conditions by providing access to finance and entrepreneurial and skills development, which ultimately supports Ethiopia’s tremendous efforts to become a middle income country by 2025. The USD 50 million loan in Development Bank of Ethiopia will on-lend to microfinance institutes, which in turn will on-lend to final beneficiaries, namely women entrepreneurs. The project is planned to be completed on 31st December, 2019.