Ethiopia: SAS Investment highlights
- Almost 90% of funding has come through the USD 45M Market Development Credit Line (MDCL)1, funded by development partners and administered by the government
- Grant financing from AECF (USD 6.7M), Shell Foundation with co-funding from FCDO and USAID, and local NGOs has also supported SAS companies – mostly international – to scale
- The government is active in efforts around policy and subsidy and has committed public shares to a public revolving fund to support SAS access to forex and working capital
- Private investment has been limited due to forex restrictions; larger companies have raised funds for regional operations
- Microfinance Institutions are increasingly active in SAS consumer financing, both independently and as part of large credit facilities
- Commercial capital from banks and financial institutions has been minimal, given an unfavorable lending environment
- Family and close relatives are the main source of equity investment in local SAS companies as most are family-owned