Ethiopia Connect is a project driven byAlliance Microfinance (AMAS) in collaboration with Norwegian Church Aid (NCA), the Norwegian technology company Bakken and Bæck (B&B), and local partner East African Trading House (EATH).

This interdisciplinary project aims to connect small farmers near the capital, Addis Ababa, to the commercial market through the supermarket chain of our local partner, EATH. NCA works closely with the farmers to improve product quality and build trust to sell to a new buyer. At the same time, AMAS is supporting the establishment of a new microfinance institution (MFI) that will provide financial services to the players in the new value chain.

NCA has for a long time supported farmers with production materials and training, which form the foundation for sustainable production and growth. Their strong relationship with the farmers makes it easier to build trust and get their participation in the project, whether it is market research or pilot projects. Together with EATH, they have worked hard to strengthen the ties between the farmers and the supermarket chain, leading to increased trust and a willingness to do business with them.

A newly hired agronomist at EATH has also contributed to significant improvements in the quality of fresh produce, especially in tomatoes and onions. Training in soil management and pest control has resulted in better prices and increased profits for the farmers. EATH has also developed an app for better waste management and is working on developing a digital trading platform.

In the work to establish the MFI, we are working to determine the structure of the bank and the leadership team in accordance with Ethiopian laws. A significant milestone was reached late last fall when local investors contributed 27.8 million NOK to the establishment of the new MFI. This is an important step towards the license application and provides security for the continued work in the project. Once the license is in place, we will offer small businesses and farmers financial products such as loans, savings, and insurance.

The collaboration with Bakken & Bæck continues on, with the development of the brand and the bank's prodct portfolio. The bank will reflect the values and goals of those of us involved in the collaboration. To better understand the potential customers, we are also conducting market research on local needs. Additionally, we are mapping out the country’s digital ecosystem, which will set the natural framework for the business models that will be implemented.

We face challenges, but we have great confidence that the project will succeed, especially now that local capital is in place. Together with our partners and supporters, we are on our way to a brighter future for Ethiopia’s micro-and small-businesses, with financial inclusion and sustainable development as our primary goals.