Dashen Bank, AfDB Sign Groundbreaking USD 40 Million Trade Finance Guarantee Facility Agreement
(Addis Ababa, April 30, 2025) – Dashen Bank and the African Development Bank (AfDB) have signed a landmark Trade Finance Guarantee Facility Agreement worth USD 40 million, marking a historic first for a private bank in Ethiopia.
The signing ceremony, held at Dashen Bank’s headquarters, was attended by senior representatives from both institutions. The facility aims to bolster Dashen Bank’s capacity to facilitate import and export trade finance and support the Ethiopian economy’s most critical sectors.
In his remarks, Mr. Asfaw Alemu, Chief Executive Officer of Dashen Bank, noted:
“This facility is a first-of-its-kind for a private bank in Ethiopia. Dashen Bank is truly honored to serve as a bridge to bring this aspiration to life. This agreement is a symbol of strategic alignment that helps Africa unlock its full potential. The rigorous due diligence we undertook to secure this facility reflects our progress in governance, operational soundness, and strategic direction.”
Dr. Leandre Bassole, Deputy Director General of the East Africa region at AfDB, emphasized the milestone:
“This agreement represents a pivotal moment in the partnership between our two institutions and the broader Ethiopian financial sector. It will play a vital role in driving inclusive, private sector-led growth in Ethiopia.”
Mr. Ahmed Rashad, Director of the Financial Sector Development Department at AfDB, added:
“This is our first, but certainly not our last, collaboration with Dashen Bank. This facility will empower the Bank to support trade finance and foster private sector development in the country.”
The facility aligns with the African Continental Free Trade Area (AfCFTA) agenda and is designed to support intra-Africa trade. It will enable Dashen Bank to issue trade finance instruments, such as letters of credit, backed by AfDB guarantees against non-payment risks. This initiative addresses the challenges faced by Ethiopian banks in securing adequate international credit lines.
The funds are expected to support the importation of essential goods, including fertilizers, pharmaceuticals, solar panels, and agricultural machinery—key inputs to boost Ethiopia’s agriculture and manufacturing sectors.
