VisionFund Microfinance Institution and International Finance Corporation (IFC) entered into Strategic Partnership for Inclusive Growth in Ethiopia.

VisionFund Microfinance Institution S.C., established in 1998, is the largest microfinance Institution in Ethiopia. It currently serves over 1.9 million clients across the country in both rural and urban areas. With a robust network of 121 branches and expanding digitally enabled operations, VisionFund MFI is providing convenient and easily accessible financial services. VisionFund’s core mission is to promote savings, support entrepreneurship, and enhance the livelihoods of low-income and underserved populations throughout the country.

To accelerate its mission of inclusive growth, VisionFund MFI and the International Finance Corporation (IFC) have formed a dual-layered partnership focused on expanding financial access for Micro, Small, and Medium-sized Enterprises (MSMEs) in Ethiopia. The collaboration includes a $30 million loan agreement, with an initial $10 million disbursement, specifically dedicated to increasing credit opportunities for the aforementioned business categories. A critical component of this financing is the commitment that at least half will support enterprises that are owned, led by, or predominantly employ women, reflecting both organizations’ dedication to inclusive economic development.

Beyond financing, the agreement incorporates a comprehensive advisory program. IFC will provide essential technical support to enhance VisionFund’s institutional capacity in business planning, risk management, and responsible finance, empowering it to serve more entrepreneurs profitably and sustainably. This advisory role is expected to strengthen VisionFund’s overall transformation agenda, focusing on digitalization, governance enhancement, and the creation of customer-centric product innovation.

As noted by CEO, Ato Taye Chimdessa, this partnership is a pivotal milestone that reinforces VisionFund’s commitment to inclusive finance. By combining IFC’s global experience with VisionFund’s strong local community presence, the collaboration aims to modernize operational systems and accelerate sustainable outreach. The overarching goal is to improve access to finance in Ethiopia, support small businesses, and ultimately empower the businesses run by women, youth, and rural communities who are described as the backbone of the Ethiopian economy to grow and improve their livelihoods.