A new low-interest loan program aimed at supporting development in post conflict  areas of Ethiopia is set to be rolled out, with financial backing secured from the European Union and the German Development Bank.

The Development Bank of Ethiopia (DBE) held a consultative meeting with key stakeholders to discuss mechanisms for channelling the funds through banks and microfinance institutions. The initiative targets microfinance institutions as well as micro, small, and medium enterprises (MSMEs) operating in the conflict-affected regions of Afar, Amhara, and Tigray.

Speaking at the forum, DBE President Dr. Esayas Kassa stated that the financial support obtained from international partners is designed to revitalize the economies of areas impacted by conflict. He emphasized that the project aims to accelerate recovery and promote sustainable economic growth.

According to the Bank, the funds will be disbursed at low interest rates through selected commercial banks and microfinance institutions. In addition to financial support, the project also includes training, capacity-building programs, and the expansion of digital financial services.

Dr. Esayas Kassa noted that the concessional nature of the loans reflects the need to support communities recovering from the effects of conflict. He urged participating financial institutions to prioritize social impact alongside profitability when delivering the funds.

Stakeholders who took part in the discussion expressed their readiness to contribute to the successful implementation of the program. They highlighted the project’s importance in stabilizing local markets and creating economic opportunities, particularly for women and youth in the affected regions.