Expanding Financial Access in Teseney, Eritrea: How Micro-Credit is Transforming Rural Livelihoods

In a region where access to formal financial services has long been a challenge, the micro-credit and saving program operating across Teseney sub-zone is quietly making a significant difference. Last year alone, the program disbursed 24.7 million Nakfa to 1,350 customers — a clear sign of its growing reach and impact.

According to Mr. Tadese Mebrahtu, head of the program in the sub-zone, the mission is straightforward but powerful: bring financial opportunities to citizens in remote areas and give them the tools to improve their livelihoods. And by the numbers, it’s working. Today, around 11,498 individuals and groups across 51 administrative areas and roughly 200 villages are benefiting from the program, spanning the sub-zones of Teseney, Golij, Haikota, and Forto-Sawa.

Most beneficiaries are channeling their loans into small-scale trade, agriculture, and livestock development — activities that form the backbone of rural economic life in the region. The results speak to a program that understands its community.

Repayment rates are also encouraging, with 68% of loans already paid back. Mr. Tadese called on remaining borrowers to settle their loans on time and urged local administrators to play a more active role in supporting the program’s continued success.

Beyond the loans themselves, the program is investing in its customers for the long term. Mr. Lenin Okbaselasie, a program member, highlighted that ongoing training in financial and material management is being offered to participants. He encouraged others in the community to seize the opportunities on offer — because access to capital is only part of the equation. Knowing how to use it wisely is what turns a loan into lasting change.