Key Financial Sector Dialogue in Mekelle to Boost Private Sector Finance

Key Financial Sector Dialogue in Mekelle to Boost Private Sector Finance-GIZ Mekelle, Tigray � November 4, 2025 � The Deutsche Gesellschaft f�r Internationale Zusammenarbeit (GIZ) successfully organized a crucial panel discussion in Mekelle, centered on the urgent need to enhance access to finance schemes under its Private Sector Development (PSD) program. This timely event underscored the program�s commitment to revitalizing and strengthening the economic backbone of the Tigray region. The discussion served as a vital forum, gathering approximately 40 key actors from the regional financial ecosystem. Participants included high-level representatives from various Banks, Micro Finance Institutions (MFIs), and Savings and Credit Cooperatives (SACCOs). Their presence signaled a collective readiness among the region's main financial channels to address persistent funding challenges. Further enriching the conversation were numerous service providers for Small and Medium-sized Enterprises (SMEs) and Micro and Small Enterprises (MSEs), along with the entrepreneurs and business owners from these crucial enterprise segments themselves. This diverse representation ensured that the dialogue was grounded in the practical, day-to-day realities of businesses seeking capital. The agenda kicked off with the Industry Bureau delivering a comprehensive presentation on the achievements and challenges faced by the regional council concerning private sector growth. This foundational segment provided a vital governmental perspective, detailing the current performance landscape and highlighting systemic obstacles that financial institutions and enterprises must navigate. A subsequent highlight was the presentation of research findings on the challenges and prospects of innovative financial solutions by Haftu Haile from EDI Ethiopia. This segment provided data-driven insights into potential new mechanisms�such as digital finance, tailored lending products, and alternative collateral models�that could be leveraged to bridge the existing funding gap for SMEs and MSEs. The core of the day culminated in a vigorous, constructive discussion among all stakeholders. Participants engaged in a critical analysis of the current PSD finance schemes and the research presented, working to synthesize the information into a unified strategic outlook for the coming year. The day concluded with participants pinpointing future directions for collaboration and policy refinement. The consensus was a strong affirmation of the need for greater synergy between the financial sector, the private sector, and GIZ�s ongoing development efforts to create more inclusive, effective, and sustainable financial pathways for enterprises in Tigray.