Solomon Birhane Belachew is 50 years old and runs a small clothing business in Ethiopia. He took out a loan of 10,000 Ethiopian birr (approx. 310 euros) with Visionfund Ethiopia, a branch of the international microfinance institution Visionfund, to buy garments.
He sews and sells women’s and men’s clothes in his shop. He also used the loan to purchase goods such as soap, fuel, biscuits, coffee, caramel, waxes and other items for his wife’s shop.
MASSIF supports Visionfund MFI through an unfunded guarantee, which enables a local bank to extend credit to Visionfund. Ethiopia is the second most populated country in Africa but has a widely underdeveloped financial sector, providing ample opportunity for the FMO to support financial inclusion.