The International Finance Corporation (IFC) has approved a $10 million local currency loan for VisionFund Microfinance Institution, marking the first such investment from an international lender into Ethiopia's financial sector.
The financing is part of a larger $30 million plan and is targeted at expanding credit for micro, small, and medium-sized enterprises (MSMEs). Notably, at least half of the loan proceeds will be channelled to women-owned businesses, alongside rural entrepreneurs.
VisionFund CEO, Taye Chimdessa, described the partnership as a "historic milestone," adding that the funds will empower small businesses, strengthen rural economies, and expand inclusive financial services across the country.
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Supported by the IDA Private Sector Window, the loan provides much-needed local currency funding in a market where affordable financing is scarce. IFC Vice President for Africa, Ethiopis Tafara, said the deal underlines IFC's commitment to fostering inclusive growth in Ethiopia.
Beyond funding, IFC will also offer advisory support to strengthen VisionFund's strategic planning, risk management, and transition into a full microfinance bank — setting a new benchmark for affordable and sustainable microfinance in Ethiopia.
