African Development Bank has approved $40 million trade finance facility for Dashen bank of Ethiopia. The bank approved this transaction guarantee facility for Dashen Bank in Ethiopia this week. The facility is aimed at supporting trade finance activities in the country.
Under the agreement, ADB will provide guarantees to confirming banks against non-payment risks from letters of credit and similar trade finance instruments issued by Dashen Bank. The focus will be on facilitating trade finance access for small and medium-sized enterprises (SMEs) as well as supporting import-export activities for local companies.
Asfaw Alemu, CEO of Dashen Bank, said, “This guarantee facility is instrumental in expanding our bank’s trade services. The engagement with ADB has not only secured this vital funding but has also equipped us with invaluable best practices to elevate our banking standards.”
Nnenna Nwabufo, Director General of East Africa at ADB, said, “This facility underscores our commitment to supporting trade in Africa. By partnering with Dashen Bank, we’re leveraging their extensive knowledge and network in Ethiopia to drive economic growth through improved trade finance capabilities.”
The initiative aligns with the objectives of the African Continental Free Trade Area (AfCFTA) to promote intra-Africa trade. It is expected to support key economic sectors such as agriculture and manufacturing in Ethiopia.
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Thanks my owners of dashin bank