Since the project kickoff in 2021, we have faced many challenges, as is always the case with projects like this. But these challenges have been greater than we could have imagined. Both the COVID-19 pandemic and the civil war in the country have caused delays and difficulties. I managed to visit Ethiopia before the authorities advised against traveling there. Before we started the project, Ethiopia was one of the fastest-growing economies. But that picture looks very different now.

When inflation in Norway was at 12%, it felt like a crisis, but by comparison, inflation in Ethiopia at one point reached 40%. Prices fluctuate drastically. The food sector has been particularly affected, making it challenging to work with farmers.

By the time a farmer plants a seed and reaches the harvest, the market conditions may have changed entirely, and they may end up losing money. Early on, we realized that this is a highly complex project and that we needed to take a holistic approach. In my view, a project like this is impossible without collaboration. Together, we are stronger.

Dividing a large project among different partners with distinct areas of expertise and responsibility increases the likelihood of success. When working on a project like this, one must consider its ripple effects. The impact of one person receiving a loan or a job is enormous, ultimately reaching even the poorest, even if they themselves may not yet be creditworthy enough to receive a loan.

Financial inclusion creates independent individuals, which not only improves self-esteem but also enhances prospects for a better and more sustainable future. It has been especially exciting to closely follow Ethiopia's development over the past few years—it is moving so fast. When the project started, we were told that having a digital bank wasn’t possible because the technology wasn’t advanced enough. But just a few years later, I see that they have leapfrogged many steps that we took in the North. They have jumped straight to using digital wallets, and many people now own smartphones.

In Addis Ababa, you can see the development firsthand, with new buildings rising and significant efforts being made to make the city safer and more attractive. What’s remarkable about walking around Addis is that people live side by side—a luxury hotel can be right next to a small shack. The traffic is chaotic, and people laugh when I suggest walking from point A to B because, in Addis, no one walks anywhere.

But one of the best parts of working on this project is the people. The Ethiopian people are absolutely wonderful. They are open, warm, and incredibly welcoming. They take great pride in their culture and country and do everything they can to make visitors feel at home.

Looking ahead, we must continue to be patient. Many processes still need to be put in place. We have a unique business model, which means we require multiple approvals, and all the legal work takes time. But I have great faith in this project. It will succeed if given the time and investment it needs. The ripple effects of a microfinance institution like this could go far beyond what we can imagine. And the advantage of doing it digitally is that it can be easily scaled—even beyond Ethiopia’s borders. I believe that the sky is the limit for what we can achieve together with Ethiopia Connect.

What we need now is patience, determination, and optimism. And finally, I want to emphasize once again that working in partnership with others is absolutely fantastic. This collaboration is built on trust, meaningful conversations, and important discussions.

This project proves that shared joy is double the joy—and that shared risk truly is shared risk!

Written by Serina S. Bakketeig, Project Manager for AMAS