The SGB Sector in 2017

Donor Funding: East Africa

Donor funding for SME-related projects highest in Ethiopia

Since 2013, funding for SME-related projects has been highest in Ethiopia, with Kenya close behind. This is a notable change because donor funding for SMEs in Ethiopia from 2007 to 2012 was US $29 million, less than the funding for SMEs in 2013 alone, which was US $30 million. This was largely driven by the launch of the Women Entrepreneurship Development Project by the World Bank’s International Development Association (IDA). IDA contributed over US $15 million to the project in 2013.

As a proportion of total donor funding, SME-related funding in East Africa never reached more than 1 percent.

In the past decade, total SME-related donor funding for Burundi is less than US $6 million.

  • East Africa
  • Ethiopia
  • Kenya
  • Rwanda
  • Tanzania
  • Uganda

Top 5 Donors supporting SME-related projects in East Africa

The top funders in East Africa include a handful of organizations, as opposed to one development finance institution. Global Affairs Canada contributed the most to SME-related projects in the region, with a total of US $22.8 million disbursed in 2016.

The United Kingdom’s Department for International Development (DFID) is the second largest funder of SME-related activities, and nearly all the funding went to projects in Kenya.

Of the top five supporters of SME-related projects in East Africa, only the Swedish International Development Authority (SIDA) gave significantly to projects in Rwanda. In 2016, SIDA provided nearly US $5 million to support the National Employment Program, which is aimed at increasing the skills base of the Rwandan labor force.

Global Affairs Canada
Department for International Development (United Kingdom)
Ministry of Foreign Affairs (The Netherlands)
Swedish International Development Authority
U.S. Agency for International Development (United States)
European Development Fund