Financial Services in the Lowlands of Ethiopia – The Impact of Multi-phase USAID Investments

Inclusive and effective financial services are a key cross-cutting resilience capacity for households and businesses, not least in shock-prone contexts such as the lowlands of Ethiopia. In 2010, when Mercy Corps began working to strengthen financial systems in Somali and Afar regions, financial services were almost non-existent, presenting a major constraint to growth, job creation and resilience.

This learning brief describes how USAID resilience investments over more than a decade have enabled Mercy Corps to play a key role in transforming financial services in the lowlands, specifically through enabling three distinct iterations of partnership and innovation. The brief highlights the impressive reach that financial institutions have achieved including the latest innovations in digital credit services, but also the challenges faced in Afar region. The contribution of other partners including Jersey Overseas Aid (JOA) is also highlighted.