UNCDF is seeking to identify and partner with financial institutions[1] that have the capability and willingness to provide credit to the target MSMEs in the conflict-affected regions (i.e. Afar, Amhara and Tigray). The selected financial institutions will benefit from technical assistance as well as an investment grant, of which the disbursement will be performance-based, to develop/improve and pilot a new or existing loan product tailored to the needs of MSMEs in conflict-affected areas in Ethiopia. The TA also include provision of capacity building support to financial institutions to expand their distribution networks to serve hard to reach MSMEs due to the conflict and remoteness. [1] Financial institutions are formal institutions, licenced and regulated by the National Bank of Ethiopia and that provide financial services. These include banks, MFIs, Insurances and capital goods finance/leasing companies. Financial Service Providers on the other hand, include both traditional and digital financial services, and they operate under the regulatory oversight of the National Bank of Ethiopia.
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