Unravelling the Potential of Supply Chain Finance in Ethiopia
The COVID-19 pandemic has presented significant challenges for the Ethiopian economy, affecting small and medium Enterprises (SMEs) more, while remittances declined and poverty levels worsened. While the Ethiopian government’s initiative to address these issues deserves credit, the potential of supply chain finance, a set of technology-based solutions that aim to lower financing costs and improve business efficiency for buyers and sellers, still needs to be explored. While the merits of embracing digital transformation, sustainability practices, and regional integration remain valid, Ethiopia can further employ the transformative power of supply chain finance to assist the private sector. EBR’s Nejat Ahmed explores.