This is the first time assistance has ever been given to the private banking sector in Ethiopia. Asfaw Alemu, CEO of Dashen Bank, said during the signing ceremony, “We are honoured to sign this first-ever agreement in the history of the private banking industry and to receive its support.”
Asfaw claims that the agreement will increase Dashen Bank’s ability to provide trade finance guarantees to other clients and business organisations. He emphasised that Dashen Bank’s needs to make this arrangement a reality reflect its achievements in a number of areas. The agreement marks a significant turning point in the future cooperation between the two organisations as well as between the African Development Bank and the Development Bank of Ethiopia, said Dr. Leandre Bassole, Deputy Director for East Africa at the African Development Bank.
He added that it will help make Ethiopia’s private financial sector more inclusive and benefit small and medium-sized enterprises, among many other industries. “This first and historic support through Dashen Bank in Ethiopia is recognised for its outstanding service to businesses, small and medium-sized enterprises, and other organisations,” he said. “This agreement creates an opportunity to further strengthen the relationship between the two banks,” stated Ahmed Rashad, Director of the African Development Bank’s Financial Sector Development Department.
The trade finance guarantee loan issued by the African Development Bank is expected to help Ethiopia’s manufacturing and agricultural sectors by facilitating the import of essentials such as agricultural equipment, fertilisers, solar panels, and pharmaceuticals.