50561 - SLGP PSW Dashen

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Summary of Investment Information

Project Number

50561

Company Name

DASHEN SLGP SME RSF 1

Date SPI Disclosed

Oct 29, 2025

Country

Ethiopia

Region

Africa

Projected Board Date

Nov 28, 2025

Environmental Category

FI-2 - Limited

Status

Pending Disbursement

Last Updated Date

Jan 17, 2026

Department

Regional Industry - FIG Africa

Industry

Financial Markets

Previous Events

Approved : Nov 20, 2025
Signed : Dec 13, 2025

Sector

Commercial Banking - SME Finance

Additional Project Attributes

Blended Finance

Project Description

The proposed IFC investment is an unfunded Risk Sharing Facility (RSF or the Project) with Dashen Bank S.C. (Dashen or the Bank), a FIG portfolio client in Ethiopia since May 2022, for up to eight years, under which IFC will guarantee up to US$10 million equivalent in local currency (LCY)—covering 50% of the Bank’s credit risk—on a target portfolio of loans to small and medium enterprises (SMEs) with a maximum portfolio amount of US$20 million equivalent in LCY. The RSF will include (i) a 20% target to Agri MSME loans, and (ii) a 25% target for women-owned/led small, and medium enterprises (WSMEs).

The Project would be processed under IFC’s Small Loans Guarantee Program (“SLGP”), a programmatic approach to de-risk and scale-up financing for MSMEs in eligible countries, such as Ethiopia.

Associated Advisory Engagement

The project is supported by two ongoing IFC Upstream/Advisory projects to (a) strengthen Dashen’s MSME banking capabilities (PJ#608645), and (b) to scale up agri-financing capabilities to smallholder farmers with the adoption and use of the Lersha digital agri-service solution (PJ#607114).

Sponsor / Cost / Location

The level of concessionality (i.e., “subsidy”) to be provided by IDA PSW-BFF is estimated to be around 7% of the total portfolio of US$1.2 billion for the entire SLGP. The estimated level of concessionality is based on the difference between (i) a “reference price” (either a market price if available—the price calculated using IFC’s pricing model which comprises three main elements: risk, cost, and profit; or a negotiated price) and (ii) the “concessional price” being charged under the Program. As is the case with all IFC’s blended concessional finance co-investments, this project has been assessed against the Enhanced Blended Concessional Finance Principles for Development Finance Institution (“DFI”) Private Sector Operations adopted by IFC and more than 20 other DFIs in 2017. Further information on these Enhanced Principles, IFC’s blended finance approach and governance, and historical information on estimated subsidy levels in IFC’s blended finance portfolio can be found at: www.ifc.org/blendedfinance. SLGP is a platform approach that can be accessed by other eligible financial institutions in IDA PSW markets. The risk sharing facility with Dashen is also expected to be supported by Canada’s Advancing Gender Equality, Resilience, Opportunity and Inclusion Worldwide (Canada GROW) in the form of performance-based incentives of up to US$120,000 to encourage more lending to women SMEs. The estimated subsidy provided by GROW assumes that the Project will fully reach the agreed impact and shall only be paid out upon achievement of the pre-defined targets. GROW's support would enable IFC and the Bank to reach more women MSMEs that may otherwise not be served without its support. GROW combines blended finance and advisory services with IFC financing to help companies achieve measurable gender equality and inclusion impacts. Launched in 2024 with a CA$100 million investment from the Government of Canada, this flexible funding platform addresses urgent challenges aligned with IFC’s strategic goals for Gender Equality and Economic Inclusion and the World Bank Group’s Gender Strategy 2024-2030. GROW aims to mobilize private financing and support the private sector in adopting policies and practices that prioritize the poor and underserved, focusing on six key areas: inclusive capital, inclusive supply chains, reducing barriers to entrepreneurship, employment, and leadership, inclusive digital solutions, inclusive climate action, and addressing gender-based violence. Additionally, GROW promotes the inclusion of other marginalized groups, such as persons with disabilities, LGBTI individuals, and those at the base of the pyramid.

Product Line	IFC Investment (million USD)
Risk Management
Guarantee	10.0
Loan
Equity

IFC's loan to the financial institution described in this SII is targeted for on-lending to the following sector(s):

Product Type	Use of Proceeds
Guarantee	Loans to SME Borrowers
Guarantee	Loans to Woman-Owned SMEs

IFC's Definitions of Targeted Sectors can be found here.

Development Impact

Financial Additionality – Financing structure: To enhance the Bank's SME loan profile and profitability, IFC’s will provide risk mitigation mechanism serving as a risk management, capital optimization, and liquidity tool. Financial Additionality – Resource Mobilization: The Project will contribute to the mobilization of the private capital where up a portfolio of the SME portfolio risk will be retained by the Bank. Non-Financial Additionality – Knowledge, innovation, and capacity building: This initiative enhances the Bank's SME lending practices and financial management through a new advisory relationship, improving loan origination, underwriting, and risk management. It includes operational support to expand lending to diverse SMEs and align the bank's strategies with market demand.

Indicator	Metrics	Calendar Year 2022	Calendar Year 2023	Calendar Year 2024
Number of Outstanding Loans, Agri: SMEs	number	Not Available	Not Available	Not Available
Number of Outstanding Loans, SMEs	number	Not Available	Not Available	Not Available
SME share of total loan portfolio	%	Not Available	Not Available	Not Available
Value of Outstanding Loans, Agri: SMEs	$	Not Available	Not Available	Not Available
Value of Outstanding Loans, SMEs	$	Not Available	Not Available	Not Available
Women-led enterprises as a share of reference MSME loan portfolio	%	Not Available	Not Available	Not Available

E&S Category Rationale / Risks and Mitigation

The proposed RSF investment with Dashen Bank is categorized as FI-2 (medium risk) under IFC’s Sustainability Policy. The facility supports a portfolio of eligible MSME loans, including Agri-SMEs and Women SMEs. The portfolio is expected to comprise business activities with limited adverse environmental and social risks or impacts, which are few in number, generally site-specific, largely reversible, and readily addressed through mitigation measures. The project will not support higher-risk business activities, that may include a) involuntary resettlement, b) risk of adverse impacts on indigenous peoples, c) significant risks to or impacts on the environment, community health and safety, biodiversity, cultural heritage, d) significant retrenchment, and/or e) significant occupational health and safety risks. Dashen will be required to screen all eligible SMEs against the IFC Exclusion List and national E&S laws and regulations as well using a supply chain screening for child labour and natural habitat modification.
Main risks relate to Dashen’s capacity to identify and manage E&S risks associated with MSME lending, as well as labor practices. E&S risks associated with SME activities are typically low to medium, such as waste management, pollution prevention, labor and working conditions, and occupational health and safety. Dashen’s HR policies are generally aligned with IFC Performance Standard 2.

Dashen has an E&S management system (ESMS) for assessing E&S risks and impacts associated with its lending activities, and a designated ESG Director and dedicated ESG team.
The ESMS details roles and responsibilities for the staff involved in E&S risk management, including screening, categorization, E&S due diligence, inclusion of E&S conditions into loan agreements, and monitoring. The Bank has a dedicated E&S Manager and a team responsible for E&S issues, who receive regular training and provide E&S training to other bank staff.

S.no	Title	Anticipated Completion Date
1	Enhance the ESMS	03/31/2026

Contacts

For Inquiries About the Project, Contact

Dashen Bank S.C.
Alemneh Abebe
Chief Financial Officer
+251 11 557 8428 or +251 114653778
info@dashenbanksc.com
Sudan Street, in front of the National Bank of Ethiopia, Floor 4th, P.O. Box 12752, Addis Ababa, ETH
www.dashenbanksc.com

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IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring its real sector clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities in relation to environmental and social issues arising from IFC's clients' business activities. Since 2012, IFC's Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.

For IFC projects that are active or under consideration, individual(s), or their authorized representative(s), who allege they have been or will be adversely affected by E&S risks or impacts arising from IFC's clients' business activities, may submit a complaint to IFC directly for consideration. When receiving an E&S complaint, IFC engages with complainants and works with its clients to find solutions to E&S concerns as quickly and efficiently as possible.

Complaints can be submitted to IFC online at www.ifc.org/escomplaints or by email to EScomplaints@ifc.org.

IFC complaint response is separate from and complementary to IFC’s clients’ project level grievance mechanisms and IFC’s Independent Accountability Mechanism (CAO). Lodging a complaint directly with IFC does not, at any time, restrict access to CAO.

Affected communities have unrestricted access to the Compliance Advisor Ombudsman (CAO), the independent accountability mechanism for IFC and MIGA. CAO facilitates the resolution of complaints related to IFC and MIGA projects and sub-projects, undertakes reviews of IFC’s and MIGA’s environmental and social compliance, fosters public accountability for their commitments, and enhances the environmental and social performance of IFC and MIGA.

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Complaints may relate to environmental and social harm regarding any aspect of the planning, implementation, or impact of a project or sub-project, and can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of an IFC- or MIGA-financed business activity.

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CAO receives and addresses complaints in accordance with the CAO Policy, which can be accessed at: https://www.cao-ombudsman.org/policies-guidelines.

This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. It also includes findings and recommendations related to environmental and social considerations regarding this potential investment. The purpose of the SII is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this SII is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein. It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following SII is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

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