ADDIS ABABA, Ethiopia, August 16, 2024 — Ethiopia’s entrepreneurial landscape is undergoing a transformative shift, driven by an innovative new initiative aimed at empowering Micro, Small, and Medium Enterprises (MSMEs). A collaboration between the UN Capital Development Fund (UNCDF) and Kifiya Technologies, ‘CheGebeya’—meaning ‘Che Market’—is revolutionizing the financial ecosystem for small businesses by modernizing the supply chain for Fast-Moving Consumer Goods (FMCG).
MSMEs in Ethiopia, the backbone of the economy, often face significant obstacles, including limited access to credit and outdated, manual distribution systems. Traditional financial institutions struggle to support these enterprises due to the lack of reliable creditworthiness assessments and collateral, leaving many small businesses unable to grow. Additionally, inefficient manual processes for distribution add to operational costs and hinder accurate sales projections.
The ‘CheGebeya’ initiative is tackling these challenges head-on by offering a digital platform that streamlines credit access, inventory management, and digital payments. Supported by the Digital Finance for Resilience (DFS4Resilience) Programme—funded by the European Union (EU) and the Organisation of African, Caribbean, and Pacific States (OACPS)—this project aims to optimize liquidity and operational efficiency within the supply chain, thereby enhancing the overall productivity of MSMEs.
Tinsae Ayele, a small retail shop owner in the busy Semit Fiyel Bet neighborhood of Addis Ababa, is one of many entrepreneurs benefiting from CheGebeya. “The app makes managing my inventory and placing orders so much easier. My restocking process has become effortless, and deliveries are always on time,” Tinsae says. With a supply chain credit of around US$260, he’s been able to maintain a steady flow of products without the usual financial strain. “This loan has opened up new possibilities for me. I’m looking forward to having even more products to offer my customers.”
Tinsae’s story highlights the impact of CheGebeya, which has not only simplified his daily operations but also provided the financial support needed to expand his business. His experience is shared by many MSMEs across Addis Ababa, as the platform continues to grow in popularity.
Since its inception, CheGebeya has made significant strides in integrating MSMEs into Kifiya’s digital platform. Starting with just two suppliers during its pilot phase, the platform now hosts 13 suppliers, eight of whom are active participants. From September 2023, the platform has onboarded over 11,000 MSMEs, including nearly 2,500 women-owned and more than 4,000 youth-owned enterprises. Currently, over 5,000 of these businesses actively engage with the platform’s services, demonstrating its wide-reaching impact and accessibility.
To date, CheGebeya has facilitated the distribution of 31 loans to MSMEs, amounting to more than ETB 400,000 (approximately US$7,000). A significant portion of these loans has been directed toward women and youth enterprises, underscoring the initiative’s commitment to inclusivity and equitable growth.
Looking ahead, CheGebeya is focused on ensuring the sustainability and scalability of its services. By leveraging Kifiya’s extensive market insights and experience, the project aims to expand its reach beyond Addis Ababa, targeting MSMEs in regional urban and peri-urban centers. Through strategic partnerships with financial institutions and a commitment to gender equality, CheGebeya is poised to unlock new opportunities for Ethiopia’s entrepreneurs, fostering an environment where small businesses can thrive.
As MSMEs continue to embrace digital solutions and grow their businesses, the ripple effects of CheGebeya will be felt across the country, shaping a brighter and more prosperous future for Ethiopia’s communities.
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