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  • Access to Capital
  • Access to Capital

Access to capital for Eritrean women entrepreneurs

Women entrepreneurs in Eritrea have limited access to finance. This is partly because of the limited number of financial institutions in the country and CSOs that provide credit. The major micro credit institution providing access to finance include: Saving and Microcredit Program (SMCP); National Union of Eritrean Women (NUEW); National Union of Eritrean Youth and Students (NUEYS); and National Union of Eritrean war disabled association. The Commercial Bank of Eritrea (CBE) and the Investment and Development Bank of Eritrea (IDBE) also provide loan to women owned business in Eritrea.

Access to capital in general and finance in particular is essential for start-up and growing businesses. Economic empowerment makes women independent and enhances their confidence in doing business. Thus, to start and grow their own business they need access to capital. 

angle-left Commercial Bank of Eritrea (CBE)

Commercial Bank of Eritrea (CBE)

CBE was originally owned by Commercial Bank of Ethiopia. Following Eritrea's independence, it was re-established as the Commercial Bank of Eritrea (CBE). CBE provides funds for entrepreneurs engaged in commercial activities. CBE has credits in excess of ERN 5 billion at all its 16 branches.


FINANCIAL PRODUCTS

1. CBE does not have products specifically designed for women only. But women have equal right to access any facility available at the CBE without any discrimination. The interest rate varies from 9-12% per annum depending on the weighted credit risk incorporated with that specific loan application i.e. obviously the higher the risk the higher will be the interest rate.

2. Generally, CBE accepts all kinds of loan applications except for real estate developments. These include businesses engaged in providing services, large, medium, and small (cottage) manufacturing industries, import/export businesses, engaged in commercial farming activities (including poultry, beekeeping, and other animal husbandry activities like dairy and animal fattening)

3. Most of the time CBE asks for collateral as security in case of default. The collateral may be applicant’s own property or that of third party.

4. CBE does not have ceiling amount below 100 Million Nakfa for a single loan exposure. Installments are scheduled as per the cash flow of the business; monthly, quarterly, semi-annually and rarely annually. Duration of the loan is from 1-5 years depending on the type of investment and production commencements. Credits are provided in the form of term loan with fixed repayment amount and an Overdraft facility for bridging finance purposes. CBE provides loans for private, public and cooperatives.


APPLICATION CRITERIA

Any entrepreneur seeking loans from CBE must first be licensed to operate in that field of business. 

Loan applicants are required to provide a business plan stating the purpose of the loan, payback period, cash flows, targeted market segments (opportunities) and collateral


OTHER SERVICES OFFERED TO BUSINESS PERSONS

Monitoring

Advice 

Proposal writing (but not formal feasibility study)


CONTACT INFO

Commercial Bank of Eritrea
Liberty Avenue, Asmara
Tel: +291-1-121844 
(+291-1-121777- Credit Administration Division)
Fax: +291-1-124887