ADDIS ABABA — In a strategic move that underscores the growing interconnectivity of African markets, Nigerian industrialist Aliko Dangote has joined forces with the International Finance Corporation (IFC) to back a $10 million risk-sharing facility for Ethiopia’s Dashen Bank.
Announced on February 17, 2026, this partnership is designed to tackle the “credit crunch” facing Small and Medium Enterprises (SMEs) in Ethiopia. By providing a safety net, the agreement allows Dashen Bank—one of Ethiopia’s leading private lenders—to lend more aggressively to high-potential but underfunded sectors.
The Mechanics of Risk-Sharing
The facility operates through an unfunded risk-sharing guarantee. The IFC, with support from the IDA18 IFC-MIGA Private Sector Window, will cover 50% of potential losses on a targeted SME loan portfolio of up to $20 million equivalent. This “first-loss support” serves as a powerful de-risking tool, encouraging private investment in a sector often viewed as high-risk by traditional commercial lenders.
Strategic Goals of the $10 Million Facility:
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Expansion & Employment: Enabling small firms to purchase equipment, hire staff, and enter new markets.
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Agribusiness & Women-Led Firms: Prioritizing sectors critical to food security and gender-inclusive financial systems.
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Commercial Capital Mobilization: Using guarantees rather than direct loans to “pull” more private capital into the Ethiopian economy.
The Dangote Factor in East Africa
Aliko Dangote’s involvement as a strategic investor is seen as a major validation of Ethiopia’s business ecosystem. This follows his recent $400 million investment to double the capacity of his cement operations in the country. By lending his weight to this IFC initiative, Dangote is expanding his role from an industrial manufacturer to a key orchestrator of continental financial inclusion.
Dashen Bank CEO, Asfaw Alemu, noted that this deal is a turning point: “SMEs often struggle to access credit. This deal enables us to lend more confidently while managing risk, ultimately supporting job creation across the country.”
IFC’s Broader Ethiopia Strategy
The $10 million SME facility is a component of a much larger commitment. In fiscal year 2025, the IFC committed $605 million to Ethiopia, targeting:
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Telecoms & Logistics: Building the digital and physical backbone of trade.
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Renewable Energy: Powering industrial growth sustainably.
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Manufacturing: Reducing reliance on imports and supporting construction.
Ethiopis Tafara, IFC Vice President for Africa, emphasized that unlocking the growth potential of small businesses is essential for Ethiopia’s 2030 strategy of sustainable economic growth.
Partnership Impact at a Glance
| Feature | Details |
| Total Facility | $10 Million (Unlocks $20M in loans) |
| Guarantee Coverage | 50% of potential SME loan losses |
| Primary Beneficiaries | Agribusiness, Women-led SMEs, Manufacturing |
| Strategic Partners | IFC, Dashen Bank, Aliko Dangote |
