Enat Bank SC has partnered with i-Capital Institute PLC to create Ethiopia’s first gender bond, which aims to provide long-term financing to women-led businesses and social projects. This initiative represents Ethiopia’s entry into gender-sensitive investments within African capital markets.
The planned bond would direct funds to women-owned businesses, cooperatives, agribusiness, and social infrastructure projects such as housing, health care, child care, and education. The bank said the structure is in line with Ethiopia’s National Financial Inclusion Strategy II (2021-2025), the United Nations Sustainable Development Goals and the African Union’s Agenda 2063.
Enat Bank said the gender bond follows the instructions of the Ethiopian Capital Market Authority, the National Bank of Ethiopia, the Ethiopian Stock Exchange and follows the Social Bond Principles of the International Capital Market Association.
The initiative comes as Ethiopia expands its capital market framework. The Ethiopian Stock Exchange, which was launched in January 2025, has begun listing government bills and aims to list up to 90 within the next 10 years. The Ethiopian Capital Market Authority licenses several investment banks and securities advisors. The African Development Bank also approved a grant of US$400,000 to support the establishment of a disclosure platform and the introduction of instruments such as green bonds, exchange-traded funds and sukuk.
Access to finance remains a constraint for small and medium-sized enterprises, which make up a large share of Ethiopia’s economy. Many businesses face challenges related to collateral, financial documentation, and management capabilities. Women-led businesses face additional funding gaps due to limited asset ownership and higher loan risk ratings. Gender bonds aim to address these barriers by mobilizing private capital to women-owned businesses and cooperatives.
In 2025, the National Bank of Ethiopia ranked Enat Bank as the only commercial lender to receive a “transformative” rating in its inaugural Gender Financial Inclusion Index.
Gender-focused bond issuance remains limited across Africa. Morocco’s Populaire Central Bank issued a USD 20 million gender bond in 2021, followed by Tanzania’s NMB Bank with a USD 32 million Jasiri gender bond in 2022. In 2025, Ecobank Ivory Coast issued West Africa’s first gender bond worth approximately US$16 million. These transactions were supported by the International Finance Corporation, FSD Africa and UN Women.
As transaction advisor, i-Capital Institute will design the bond framework, oversee the regulatory process and coordinate stakeholder discussions. This cooperation is expected to support the development of future thematic instruments in Ethiopia, such as social bonds, green bonds, and sustainability-related bonds.
If approved, Ethiopia will join a small number of African countries that have developed dedicated instruments to expand women’s access to finance and formal capital markets.
