Dashen Bank has secured a EUR20 million financing facility from EIB Global, the financial arm of the European Investment Bank, to expand long-term credit access for Ethiopian small and medium-sized enterprises. The agreement prioritizes high-impact sectors, with at least 70% of the funds allocated to agricultural value chains including coffee, grains, fruits and vegetables. The facility also mandates minimum 30% targets for climate action projects and 30% for women-owned or women-led businesses.
Dashen Bank CEO Asfaw Alemu said the facility aligns with the institution's strategy to diversify funding channels for high-growth sectors. "This partnership with EIB Global allows us to provide patient, long-term capital to agricultural and export-oriented enterprises that serve as the backbone of our economy," Alemu said. EIB Global Director General Andrew McDowell noted that the facility aims to convert development finance into sustainable local enterprise growth, stating that "by linking target funding to agriculture, climate resilience, and gender equity, this initiative will help Ethiopian businesses expand operations and access international markets."
The credit facility arrives as Ethiopian agriculture contributes over one-third of the nation's gross domestic product and generates the bulk of its export earnings, according to the source material. However, agricultural SMEs frequently struggle to secure affordable, long-term financing due to strict collateral requirements, perceived seasonal risks and broader structural liquidity constraints within the domestic banking sector. Recent financial sector reforms, including the transition to a market-based exchange rate in July 2024, have helped ease foreign exchange bottlenecks and bolster export competitiveness, though commercial banks continue to navigate tight liquidity conditions.
The agreement marks another step in Dashen Bank's expanded international partner strategy. In February 2026, the bank secured a USD10 million risk-sharing agreement with the International Finance Corporation to support a USD20 million SME portfolio focused on agricultural and female-led enterprises. For EIB Global, this transaction falls under its broader "Green African Agricultural Value Chains" framework, following a similar EUR20 million credit line extended to Zemen Bank in April 2026, which was matched locally to unlock EUR40 million in targeted agricultural and climate financing.
Specific interest rates, loan tenors and application procedures for Ethiopian businesses will be released by Dashen Bank as the facility moves to the disbursement phase. The financing provides Ethiopian savers and investors with evidence of renewed international confidence in the domestic banking sector's capacity to channel capital toward productive agricultural investment.