Digital Lift-Off

Ethiopia: Chapa fintech to start SME lending, eyes Djibouti, Somalia

By David Whitehouse

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Posted on July 17, 2023 04:00

© Rising Internet penetration is expected to lead to growth in Ethiopia’s digital economy. REUTERS/Tiksa Negeri — Rising Internet penetration is expected to lead to growth in Ethiopia’s digital economy. REUTERS/Tiksa Negeri

Ethiopian fintech Chapa is partnering with local banks to offer loans for small and medium sized enterprises (SMEs), CEO Nael Hailemariam tells The Africa Report.

Chapa estimates that there are more than two million micro, small, and medium enterprises in Ethiopia. Most of them have little access to working capital, and the company’s aim is to “democratise finance”, Hailemariam says.

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