November 25, 2016

Ethiopia: Business Environment Assessment for SME Financing with Special Focus on Leasing

The objective of the Technical Support consultancy is to complete a thorough assessment of the BE for SME finance for the manufacturing sector, especially SME finance programmes to be established within the regional SME clusters, with a particular focus on opportunities to utilise lease financing and alternative financing modalities to increase investment in the sector. The assessment should include the private sector market for SME finance, as well as government led interventions to support the sector.

The output from the assessment should include a thorough market analysis of the regulations, policies and strategies that govern the access to finance element of the SME manufacturing sector development. In addition, it should present a clear outline of the underlying causes for BE constraints in the sector and propose intervention areas for the SME finance market focused on manufacturing to work more effectively and sustainably in the long-run.

As regional SME clusters are a key part of the SME development strategy, the assessment should examine different modalities of financing SME clusters in Ethiopia, and recommend possible options of modalities to be adopted.