In Addis Ababa, Ethiopia, Hanna Berhanu manages Abyssinia Woodworks PLC, a furniture manufacturing business she started in 2015. Initially working as an importer of surveying instruments, Hanna was compelled to change direction due to a foreign currency shortage. Her brother suggested exploring the local furniture market, leading her to establish the workshop.
"At first, I was unsure," Hanna admits. "I didn’t have a background in carpentry, but the more I understood the work, the more I began to enjoy it."
Hanna faced challenges in securing financing for modern machinery due to high interest rates and banks' reluctance. However, in 2021 she obtained a loan through the World Bank’s Ethiopia SME Finance Project. This enabled her to purchase new machines and improve efficiency and product quality.
The World Bank's support has been significant in addressing financial barriers for SMEs like Hanna's. The Ethiopia SME Finance Project has provided over $400 million in financing across various sectors.
As her business grew, Hanna prioritized hiring women—75% of her 45 employees are female—to challenge gender norms in carpentry.
"It was important for me to create opportunities for women in this field," she explains. "There is no reason why they shouldn’t be part of the industry."
Addisalem Eshete also operates within a male-dominated sector with Sound Engineering Consultancy, which specializes in road construction design and management. She founded her firm after years of experience aiming to elevate women's roles in construction leadership.
"When I started, there were few women in leadership roles in construction," Addisalem says. "I wanted to change that."
Securing funds posed difficulties until Addisalem accessed financing through the Women Entrepreneurs Development Project (WEDP), allowing her business expansion and increased competitiveness.
"The World Bank’s investment...is recognition that empowering women and SMEs is critical," stated Marlon Rolston Rawlins from WEDP and Ethiopia SME Finance Project.
Programs like WEDP provide loans averaging $10,000 with repayment terms between 24-48 months. These initiatives aim at boosting economic growth by supporting women-led businesses with finance access and training.
Both entrepreneurs emphasize how such programs help them thrive while impacting their communities positively by creating jobs and challenging stereotypes about women's capabilities.
"When I see my payroll," Hanna reflects proudly on employing many women, "I feel proud knowing how many women’s lives and their families I am impacting."