IFC Partners with Dashen Bank to Unlock $20 Million in SME Lending in Ethiopia. Addis Ababa, Ethiopia — February 18, 2026 The International Finance Corporation (IFC), a member of the World Bank Group, has announced a partnership with Dashen Bank S. C.
To unlock $20 million in lending for small and medium-sized enterprises (SMEs) in Ethiopia.
The initiative, supported by the IDA18 IFC-MIGA Private Sector Window, is a $10 million risk-sharing agreement aimed at improving credit access for SMEs, particularly in agribusiness and women-led companies.
According to local reports, the focus on agribusiness and women — led enterprises is part of a broader strategy to promote financial inclusion and support the growth of the private sector in Ethiopia.
Dashen Bank, one of the largest banks in the country, will use the funds to provide credit to entrepreneurs who often face difficulties in securing financing. This approach is expected to stimulate economic activity and job creation in Ethiopia.
Official statements indicate that the initiative is part of the IFC’s ongoing efforts to support the Ethiopian economy, which has been experiencing growth but also faces challenges such as high inflation and limited access to finance for SMEs.
Reaction to the partnership has been largely positive, with sources close to the matter saying that it is a significant step towards addressing the financial needs of SMEs in Ethiopia.
The focus on women — led businesses is particularly welcomed, as these enterprises often face additional barriers to accessing credit.
The IFC’s commitment to the initiative is part of its broader strategy to mitigate investment risks in challenging markets and support sustainable economic growth.
The partnership with Dashen Bank is expected to have a significant impact on the Ethiopian SME sector, providing much — needed capital and potentially leading to increased productivity and job creation. Further details regarding the specific disbursement of the funds and the impact on the SME sector are expected to be released in the coming weeks.
In the meantime, the IFC and Dashen Bank are working closely to implement the risk — sharing agreement and begin lending to eligible SMEs.
Source: IFC launches $10 million deal to unlock $20 million in new loans for Ethiopian small businesses — [africa. Businessinsider. Com]( Businessinsider.
*Additional reporting by ImNews | Sources consulted: 4*
