Private Sector Development

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USAID Ethiopia works to advance an environment that supports increased private sector investment and growth. In the past five years, Ethiopia has experienced substantial growth in all three major economic sectors (agriculture, industry and services). However, investments by the private sector lag far behind those of government and the country continues to rank lowest in the region for the World Bank’s “Ease of Doing Business” Index. USAID has developed a five year Economic Growth and Private Sector Development Support Strategy to support elements within core Feed the Future activities and develop stand-alone activities to create the necessary environment for private sector growth. Core activities will promote favorable conditions on a larger scale, while supporting activities will target specific reforms, policies and other inventions to increase competitiveness.

Projects include: woman working at a soap factory

  • Development Credit Authority: Increase access to short-term marketing credit and medium-term investment capital for local business owners, diaspora, and women-owned businesses.
  • Financial and Business Services (FaBS): Foster private sector development by enabling a more stable and inclusive financial system, promoting discussion between private and public institutions, and improving business development services for small and medium enterprises.
  • Multi-Donor Fund for Private Sector Development: Build the capacity of the private sector in Ethiopia and raise its level, competitiveness, and importance. This, in turn, triggers economic dynamism, enhances productivity, and contributes to poverty reduction.
  • Trade and Customs Enhancement Reform Project (TraCER): Improve the ability of producers, processors, and suppliers to import and export goods in terms of both time and cost, therefore increasing the overall competitiveness of Ethiopian products and encouraging economic growth.

See also: PEPFAR