LIWAY Disburses 180 Million Birr to Small Businesses

The SNV-led Livelihoods Improvement for Women and Youth (LIWAY) project has disbursed more than 180 million birr in loans through alternative financing models, supporting over 4,000 micro and small enterprises (MSEs) across Ethiopia.

The update was shared during an access-to-finance learning symposium held on December 17, 2025, at the Hyatt Regency Addis Ababa under the theme “Unlocking Finance for MSMEs.” The event brought together banks, microfinance institutions, fintech companies, and government agencies to discuss persistent financing gaps facing small businesses.

Organized by SNV and Mercy Corps, the forum focused on practical solutions to address collateral constraints and credit access barriers that continue to limit the growth of micro, small, and medium enterprises.

Speaking at the symposium, LIWAY Team Lead Yewubdar Hailu said the project has so far reached more than 300,000 people, with youth accounting for 75 percent of beneficiaries and women representing half of participants. The project aims to reach 400,000 people by December 2028.

“So far, we have tested five different financing models with our partners,” Yewubdar said. “Cash-flow-based lending blended with insurance has onboarded more than 4,000 micro and small enterprises into the formal financial system.”

LIWAY is funded by the governments of Sweden and the Kingdom of the Netherlands and focuses on improving livelihoods by expanding access to finance, markets, and skills development for youth and women.

Julie Graham, Country Director of SNV Ethiopia, said access to finance should go beyond credit provision alone.

“Increasing access to finance is not just about loans,” Julie said. “It requires a holistic system that includes savings, microinsurance, and responsible lending, supported by collaboration among regulators, financial institutions, civil society, and the private sector.”

Discussions at the symposium also highlighted future policy priorities. SNV is working with private sector partners to develop national lending standards for cash-flow-based loans, establish interoperable data-sharing systems for MSME credit histories, and design gender-responsive financial products tailored to women entrepreneurs.

SNV, which has operated in Ethiopia for over 50 years, said it is now focused on scaling pilot initiatives into broader policy frameworks. In collaboration with the National Bank of Ethiopia and private financial institutions, the organization aims to institutionalize alternative lending practices that reduce reliance on traditional collateral requirements.