Lease financing scheme to reach 3000 SMEs with USD 276 million
A lease financing project targeting some 3000 entrepreneurs operating Small and Medium Enterprises (SMEs) engaged in manufacturing industries is set to provide USD 276 million, The Reporter has learnt.
Secured from the World Bank Group (WBG) and the European Investment Bank (EIB), the money is set to be channeled to a competent of The Small and Medium Enterprises Financing Project which targets entrepreneurs engaged in the construction, mining, textile, agro-processing, tourism and the like.
The project component was launched two years ago under the Federal Small and Medium Manufacturing Development Agency with the aim of introducing a lease financing scheme in a view to serve “the missing middle” that both banks and microfinance institutions have neglected for years.
The lease financing project is providing the said amount of money for direct machinery purchases and leasing purposes via the Development Bank of Ethiopia (DBE). The balance will also be set aside for soft and technical skills development and other components. The five years project targets to graduate close to 3000 beneficiaries to large scale manufacturing businesses.