By: Getahun Tsegaye
Staff Reporter
Addis Ababa, Ethiopia – Dashen Bank and the African Development Bank (AfDB) have signed a $40 million trade finance guarantee agreement aimed at strengthening private sector trade and improving access to foreign trade financing for Ethiopian businesses. The agreement was signed on April 30 at Dashen Bank’s headquarters in Addis Ababa.
It’s stated that the deal marks a historic milestone for Ethiopia’s private banking industry, as it is the first time the African Development Bank has extended such a trade finance guarantee to a private Ethiopian bank.
Dashen Bank CEO Asfaw Alemu expressed the significance of the agreement, saying:
“It is a great honor for us to finalize this historic agreement and to be the first private bank in Ethiopia to benefit from such support from the African Development Bank.”
He added that the agreement will significantly boost Dashen’s capacity to provide trade finance guarantees to businesses and other clients, enabling increased access to vital imports and facilitating international trade.
According to Asfaw, the partnership reflects the progress Dashen Bank has made in meeting international benchmarks across multiple sectors, qualifying it for such a strategic facility.
Dr. Leandre Bassole, Deputy Director General for East Africa at AfDB, underscored the broader importance of the agreement, calling it “an important chapter in the evolving relationship not only between our two banks, but also between the African Development Bank and Ethiopia’s private financial sector.”
He emphasized that the initiative would promote the growth of private finance in Ethiopia and support small and medium-sized enterprises (SMEs) in expanding access to trade opportunities.
Ahmed Rashad, Director of Trade Finance Development at AfDB, noted that the agreement will “pave the way for deeper collaboration between our institutions and create greater financing opportunities in the years ahead.”
The $40 million facility is expected to back the import of essential goods into Ethiopia, including fertilizers, pharmaceuticals, solar energy equipment, and agricultural machinery—key inputs that support the country’s manufacturing and agriculture sectors.
This move is seen as a strategic effort to narrow Ethiopia’s trade finance gap and foster sustainable economic growth by empowering local businesses with improved access to international markets.
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