• Eritrea
  • Resources
  • Access to Finance
  • 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 National Union of Eritrean Women (NUEW)

National Union of Eritrean Women (NUEW)

The National Union of Eritrean Women (NUEW)  was established in 1979 and is mandated to empower women in Eritrea. It strives to empower women economically, socially and politically so that they play their role in the development of the nation. The social and economic department is responsible for the economic empowerment of women.


FINANCIAL PRODUCTS

1 Financial product for Trade and Service rendering business
Loan interest rate: 12% flat; It is a group loan. So if one of the members fails to repay, the others members of the group will be responsible for the debt. This mechanism acts as the collateral. 
Ceiling amount: 10,000 Nakfa in the three different cycles (1st 3000NKF, 2nd 8000 NKF and 3rd 10,000NKF)
Repayment installments: Within two years if the activities is agri-business and one year if it is service business; Loan period: Minimum of one year and maximum of two years in one cycle.

2. Financial product for agri-business, for example products of dairy, poultry, animal fattening and selling, cooperative farming, production of grains and vegetables. The loan rate, collateral requirement, ceiling amount etc. are similar to financial product 1 above.


APPLICATION CRITERIA/WHO QUALIFIES

Loan access criteria: Loan provided mainly to female headed households (single mothers and disadvantaged women). 


OTHER SERVICES OFFERED TO BUSINESS PERSONS

- Skills development training in their area of business
- Mentoring: After forming the group, the village bank head immediately gets mentoring service from the micro credit officer in their area on how to efficiently use the loans for their businesses. 
- Coaching: The micro credit officer looks after the clients and supports them on how to sustain their finance and develop saving habit.
- Advice: By inviting experts on financial management of businesses, they get advice on how best they can use their money.


CONTACT INFO

Senait Mehari 
Head  Department of the Socioeconomic service in the NUEW (Six Zobas including Diaspora)
Address: AV Gureito 10-12, IA173 Asmara
P.O.Box 239, Asmara
Fax: +291-1-120628/114575
Tel: +291-1-119304