The Ethiopian Enterprise Development (EED) has disbursed over Birr 5.3 billion in operating loans to 712 small and medium-sized manufacturing enterprises in the first six months of the 2024/25 fiscal year. This financial support has contributed to the creation of 60,320 jobs within the sector during the same period.
According to Alebache Nigussies (PhD), the Director of EED, EED is working closely with stakeholders to provide a range of support services, including financial assistance, access to machinery, training, and workspaces. These initiatives aim to enhance the role of small and medium-sized enterprises (SMEs) in boosting Ethiopia’s production capacity, productivity, and competitiveness.
Of the total loans provided, Birr 823.5 million went to 455 small enterprises, while Birr 4.56 billion was allocated to 257 medium-sized enterprises. This represents 86 percent of the EED’s loan distribution target in terms of the number of enterprises, while exceeding financial targets. In addition to loans, EED supplied production equipment valued at nearly Birr 2.9 billion to 599 enterprises.
The financial and machinery support provided is expected to increase productivity and strengthen the competitiveness of Ethiopian products in both local and international markets. To address input supply challenges, EED facilitated the distribution of over 116,000 tons of raw materials to manufacturing enterprises over six months. Input linkages were established for 1,946 enterprises, including 1,317 small and 629 medium enterprises, enhancing supply chain integration.
In the first half of the fiscal year, 1,527 new manufacturing enterprises were established across regional and city administrations, while 7,446 existing enterprises were strengthened. These efforts collectively generated over 60,000 jobs in the manufacturing sector. Additionally, awareness campaigns conducted by the Development Office and regional partners encouraged 323 domestic investors, with a combined capital exceeding Birr 4.4 billion, to enter the manufacturing sector.
Source: Addis Zemen
