Credit to MSEs in Ethiopia has declined by 34 percent during 2020/21 to 5 billion Birr compared to the preceding budget year.
As a result, over 984,000 jobs in MSEs have vanished, according to the annual report of the National Bank of Ethiopia (NBE). Compared to the 7.67 billion Birr loans micro and small enterprises (MSEs) have received in 2019/20, the amount of credit accessed by the MSEs has declined by 2.65 billion Birr,
The total number of micro and small enterprises operating in Ethiopia in 2020/21 has increased to 115,200 from 111,547, according to the report. However, the total number of employments by MSEs, which was 1,569,163 in 2019/20, has dropped to 585,119 in 2020/21 (Ethiopian budget year began July 8, 2020).
On the contrary, during the 2020/21 budget year the 29 microfinance institutions (MFIs) in Ethiopia, whose main clients are MSEs, have grown their total capital and total asset by 43.4 and 13.8 percent.
