AfDB Launches $1.84 Million Project to Support Ethiopian SMEs and Alternative Financing

The African Development Bank (AfDB) has unveiled a 1.84 million US dollar project, titled "Financing the Missing Middle," aimed at supporting Ethiopian small and medium-sized enterprises (SMEs) to become investment-ready. The initiative seeks to bridge the gap between SMEs and private investors, including diaspora and angel investors, by improving business planning, corporate governance, and financial documentation.

The project is funded through 999,250 dollars from the Fund for African Private Sector Assistance (FAPA), alongside contributions from Ignite Capital and Germany's GIZ. Rather than providing direct capital to businesses, the funds will be used to establish institutional capacity, technical support, and digital crowdfunding infrastructure. The program aims to help SMEs overcome barriers to accessing long-term capital by assisting them in meeting investor due diligence requirements.