FSD Ethiopia Backs Five Local Financial Inclusion Projects with $1.24M in Grants

Betting on technology, community structures, and strategic partnerships, FSD Ethiopia is investing $1.24 million in grants to support five local projects.

The funding, aimed at improving financial access and supporting underserved communities, brings together a diverse range of organizations, from startups to state-owned enterprises, while addressing various challenges and opportunities. The program also backed by the Gates Foundation, will run for two years. 

The recipients include Ethiopost, Lersha, Pula, Elebat Solutions, and Birrama. Each will leverage digital innovation, agent networks, and community-based strategies with the goal of developing a more inclusive financial ecosystem and driving sustainable economic growth.

“We are thrilled to support these projects that align with our mission to create an inclusive financial ecosystem in Ethiopia,” said Hikmet Abdella, CEO of FSD Ethiopia.

Through its partnership with Elebat Solutions, a company working on expanding digital financial services, FSD plans to expand a robust network of agents, many of them women, to bring digital payment and savings solutions to remote and underserved areas, boosting financial literacy among SMEs, cooperatives, and village savings groups.

Lersha, an AgTech startup, will leverage the grant to connect farmers with digital tools, financial services, and agricultural expertise, supporting them to boost productivity, reduce costs, and build climate resilience through mobile wallets and mechanization services.

Birrama, a company blending Ethiopia’s traditional Idir system with digital solutions, will offer affordable microinsurance and savings accounts.

Meanwhile, Pula, an organization specializing in agricultural insurance, will support farmers in regions like Tigray, Amhara, Oromia, and SNNP by raising awareness and developing an open-source yield database to design tailored insurance products, enhancing the Input Voucher System’s impact.

Lastly, Ethiopia’s national postal service, Ethiopost, with 700 branches nationwide, will transform its postal branches into agency outlets to facilitate millions of transactions and create job opportunities for thousands of agents, especially in rural communities, while promoting financial service adoption through targeted marketing efforts.

“From digital savings to agricultural insurance, we are fostering resilience and opportunity for communities that have historically been left behind,” said Abel Taddele, Director of Financial Inclusion at FSD Ethiopia.