The Mastercard Foundation Micro and Small Enterprises COVID Resilence Facility provided support for 10,000 businesses affected by the covid -19 pandemic.
The Mastercard Foundation Micro and small enterprise (MSE) Resilence Facility was created in 2020 through a partnership between the FDRE jobs creation commission, Mastercard foundation, and First Consult, to support MSE’s and startups in Ethiopia during the COVID-19 pandemic by providing them with soft loans and grants through Awash Bank and Dashen bank.
“It is deeply encouraging and hopeful to see the ways in which our partner’s support has protected jobs.”
As of July 31, 2021, 50,000 jobs were protected from the impacts of the COVID-10 pandemic. Through the partnership with Awash and Dashen bank as disbursement institutions, 8000 formal businesses have received 895 million birr in the form of soft loans which 5000 are micro-enterprises. In addition, 2000 informal businesses whereas 80 pc owned by women have been provided with a total of 24 million birr in the form of grants.
“The facility gave us an opportunity to expand our customer base in the MSE market. I believe this experience will inform our future product development and our go-to-market approach in the segment.” Mentioned Ephrem Bogale, Director of personal and SME Banking Directorate at Awash Bank
The facility has helped to ensure that MSE’s remain solvent, retain their employees, and create increasingly innovative work opportunities in the wake of covid-19. The creation of the master card foundation MSE resilence facility is aligned to the foundation young African workers strategy and the FDRE jobs creation 5 years national plan action job, which aims to enable youth to access dignified and fulfilling.
“The pandemic created not just a health crisis, but on economic crises, with small and medium businesses on the front lines. In 2020, we launched the Mastercard foundation COVID-19 recovery and resilience program in part to enable struggling businesses to access urgently needed resources. It is deeply encouraging and hopeful to see the way in which our partner’s support has protected jobs, as well as enabled innovation and resilience,” said Samuel Yalew, country head, Ethiopia, at the Mastercard Foundation.
“COVID 19 pandemic had an adverse effect in the Labour Market especially on MSE’s that are the backbone to the economy. in 2012 EFY only more than 300,000 jobs have been lost due to the pandemic. this drags the effort of creating sustainable jobs for all and adds to the burden of unemployment.” stated Nigussu Tilahun, Commissioner of the FDRE Job Creation Commission.
As a result of the economic disruption brought about by the COVID 19 pandemic, accessing finance has become increasingly challenging for enterprises, especially for micro and small enterprises that are primarily informal.
“I produce concrete flower pots and used to sell them with plants from my home. this support helped me to rent a place where I can produce, store raw materials, and display my products. I also used the funds to buy raw materials. I now have the potential to grow and expand my business.” mentioned Senait Girma, one of the beneficiaries.