According, to the World Bank’s Global Findex database in developing countries, women in particular are less likely to have a bank account at a formal financial institution than men are; and are 20% less likely than men to have borrowed formally from a financial institution. Also 80% of women-owned SMEs with credit needs are un-served or under-served. In this regard Enat Bank's Board and management have long realized the importance of collaborating and allying with MFIs that have common vision as Enat Bank. The alliance will help reach and expand financial services to more women businesses through providing a term loan to MFIs in Addis for working and/or lending capital. |
Consequently, the Bank took the initiative of making lendable fund available to MFIs that have been found eligible per the criteria set in the Terms of References prepared. Similarly MFIs would be duty bound to respect all lending standards indicated in the TOR, especially NBE credit policy, and the importance of channeling the borrowed fund to women and women owned businesses.
In this connection a workshop was arranged to discuss the TOR and to clarify the strategic intent of the Bank to participant MFIs. Following the workshop a number of MFIs have applied for the loan and eventually two MFIs namely PEACE & Eshet MFIs have been elected after thorough screening and selection processes. To this effect, a memorandum of understanding was signed between the Bank and the two MFIs on December 10, 2015. On the occasion it was made clear that, in the future, Enat Bank would intend to establish such an alliance with all MFIs that work on women economic empowerment.