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The Women Entrepreneurship Development Project In Ethiopia

The Women Entrepreneurship Development ProjectThe Women Entrepreneurship Development Project (WEDP) aims to provide more opportunities for female entrepreneurs. The International Development Association (IDA) of the World Bank is continually funding more than $2 million to women in Ethiopia looking to start or improve their businesses.

The program’s contributions are improving the Ethiopian economy and the empowerment of women. It is one of the only women-focused lines of credit operations in the world and has been the most effective.

Signs of Progress

To date, more than 12,000 female entrepreneurs have received loans from the IDA. Of this, 66 percent are first-time borrowers; yet, 99.1 percent of the loans have been repaid.

Additionally, 16,000 women have participated in business training thus far. On the other hand, firms participating in the WEDP are experiencing growing incomes. In comparison to those not working with the program, income has increased by 40.77 percent. With increasing profit, these firms are able to expand employment by 55.73 percent.

Giving Women Entrepreneurs a Feasible Option

The Women Entrepreneurship Development Project’s success can largely be accredited to having “missing middle” loans. In many instances, banks require a minimum of a $50,000 loan and microfinance options are at most $5,000. These requirements make it nearly impossible for female entrepreneurs to get a loan suitable for their business.

The WEDP provides an average loan of $12,500 and has successfully reduced the collateral from 200 percent to 125 percent. The IDA saw an untapped market and is now profiting off of the potential for these entrepreneurs to expand their businesses.

Project Initiatives

Another reason why the Women Entrepreneurship Development Project is succeeding is due to the specific and goal-oriented plan of the World Bank. The objective in Ethiopia is to improve both earnings and employment of female-owned Micro and Small Enterprise’s (MSE).

The most common obstacle businesses face in Ethiopia is access to finance. In fact, only 40.4 percent of these owners have access. As a result, the project focuses on ensuring easy finance options and offering unique financial instruments that fit the needs of each business.

It is also useful that the project offers programs to teach entrepreneurial and technical skills. The World Bank aims for access to microfinance and a dedicated line of credit, development of entrepreneurial skills, technology and cluster development and, project management, advocacy and outreach, monitoring and impact evaluation.

Partnerships and Impacts

Without partnerships with the Department for International Development (DFID), the Canadian International Development Agency (CIDA), the U.K., Italy and Japan, the success of the WEDP would not be possible. Many countries and agencies have offered financing or other assistance contributing to the rise of female-owned business in Ethiopia.

Not only has the Women Entrepreneurship Development Project been hugely successful in Ethiopia, but it is also inspiring initiatives to finance female-owned companies in countries like Nigeria, Zimbabwe, Madagascar, Turkey, Mexico and Indonesia. Should these countries follow suit, the impact could be unprecedented.

Even though the project has a few more months until its completion, it is providing an opportunity for the government of Ethiopia to support the Small and Medium Enterprises (SME) of women entrepreneurs.

– Jessica Haidet
Photo: Flickr

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The Impact of the International Women’s Coffee Alliance

The International Women's Coffee Alliance
The International Women’s Coffee Alliance aims to empower women to achieve sustainable, meaningful lives through international coffee communities. IWCA recognizes the integral part women play in both a business and an economic aspect. As such, IWCA believes women need to be involved in both family sustainability and economic choices. When this happens, multiple aspects typically leading to poverty in a community decrease.

“When women are fully involved, the benefits can be seen immediately: families are healthier; they are better fed; their income, savings and reinvestment go up. And what is true of families is true of communities and, eventually, whole countries,” states Kofi Annan, as quoted on IWCA’s homepage.

Strong Women = Strong Coffee

IWCA’s motto is “Strong Women = Strong Coffee: Connect. Empower. Advance.”

According to IWCA chapter manager Blanca Castro, “The chapters have very localized issues that they centralize their work around to be a collective force. The common denominator for the groups is that they are all mothers, daughters and workers and share many of the same challenges around the world, not just specific to coffee, such as the price of coffee but the also laws and customs that make women earning a dignified living that much more of a challenge.”

Now how is the IWCA taking action to implement and empower women?

IWCA Ethiopia

Strong Partners Build Economic Empowerment

IWCA is involved in multiple parts of the world, including Ethiopia. The Ethiopian Women in Coffee (EWiC) partnered with the International Trade Center, which brings platforms for corporations to empower companies to connect with women-owned supply companies. As a result, the EWiC and ITC are working together to build a foundation for the same goal.

The EWiC is one branch under IWCA. It moves to improve the economy and the importance of women within a community. Through the incorporation of women in international trade, IWCA believes that poverty within Ethiopia will soon be alleviated.

IWCA Burundi

Working Together Grows Quality and Premiums

The IWCA also has a chapter in Burundi, specifically in the regions of Ngozi and Kayanza where they have seen a growing impact of empowering the women of this region. Since their start in Burundi in 2012, there has been an increase in job opportunities for the community. Moreover, this has led to improved livelihoods based on coffee bonuses and pay raises.

In Burundi alone, there has been an increase in green coffee bags. In 2012, 94 green coffee bags were produced, as compared to 2,065 green coffee bags in 2017.

WCA-India

Building Awareness, Strengthening Communities

Coffee Santhe (Coffee Market) is held annually in India’s coffee capital, Bangalore. Santhe is a program that helps raise funds for communities. It also unites different states within India’s massive demographic to come together and learn how they can impact and improve their communities.

Santhe generates funds and provisions for children who are in government-run schools in coffee regions. These funds and provisions support their education. It also teaches them how they can impact their own lives and those around them.

The IWCA has a presence in 22 different countries. And it promotes economic sustainability by empowering women to enter the workforce of international trade, specifically through the coffee industry. Ultimately, the International Women’s Coffee Alliance believes by uniting different nations and closing the gender gap in the workforce, the issues of global poverty will disperse.

– Hannah Vaughn
Photo: Google Images