 reached an agreement with Zemen Bank to make €40 million for Agricultural businesses in Ethiopia. ){kind=link}
Borkena
Toronto – European Union Investment Bank (EIB Global) has reached an agreement with Zemen Bank, one of the private banks in Ethiopia with a high rating for service excellence, which will benefit the Agricultural businesses in Ethiopia.
The agreement was signed in Addis Ababa on Monday in Addis Ababa at a European Union-Ethiopia Business Forum attended by European Commissioner for International Partnerships Jozef Sikela and Ethiopian government officials.
A total of €40 million in financing is to be available for the sector because of the agreement.
Jozef Sikela. said “This €40 million investment into Ethiopia’s agriculture will help businesses export more, create jobs and keep more value in the country.”
In a Press Release sent to borkena, EIB Global stated that “Under the accord, EIB Global is providing a credit line of €20 million to Zemen Bank, which will in turn match the sum.”
The line of credit arrangement is said to be “the first direct loan to a commercial bank extended by EIB Global in Ethiopia.”
Zemen Bank will lend it to small and medium sized in the sector operating in Ethiopia – mainly for those engaged in exporting agricultural products.
Apart from promoting agricultural exports, the lending seems to positively impact the fight against global warming. EIB Global highlighted in the press release that “30% focus on businesses that promote climate action and environmental sustainability.”
Gender equality is another element that stands to benefit from the agreement. 30% of the total funding will be channeled to SMEs businesses “owned or led by women or provide employment, products and services for women.”
Dereje Zebene, Chief Executive Officer of Zemen Bank, remarked “We are proud to partner with the European Investment Bank in mobilizing €40 million to support Ethiopia’s farming enterprises. This initiative reflects our shared commitment to strengthening agricultural productivity, empowering farmers, and driving inclusive economic growth.”
According to EIB Global, Agriculture still accounts for more than a third of Ethiopia’s gross domestic product (GDP).
Zemen Bank was established in October 2008 and is enrolled in an EIB technical assistance programme . Currently, it has 141 branches and over 1,800 employees across Ethiopia.
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