Ethiopia, European Investment Bank sign €70mln loan agreement

Addis Ababa, June 29, 2017 (FBC) – Ethiopia and the European Investment Bank (EIB) today signed a 70 million Euros loan agreement.

The agreements was signed by Getahun Nana, President of the Development Bank of Ethiopia and Pim van Ballekom, Vice President of European Investment Bank.

The signature ceremony was attended by Admasu Nebebe, Ethiopia’s State Minister of Finance and Economic Cooperation, Ambassador Chantal Hebberecht and Carolyn Turk, World Bank Country Director for Ethiopia, Sudan and South Sudan.

“The European Investment Bank has supported investment to improve energy, water, communications and private enterprise across Ethiopia for more than 40 years and is a key partner for sustainable development in Ethiopia,” said Admasu.

“We welcome the increased engagement of the European Investment Bank since the opening of the EIB Addis Ababa office two years ago and look forward to strengthened cooperation in the years ahead,” he added.

“The European Investment Bank is committed to supporting long-term investment across Africa that improves infrastructure and strengthens economic activity,” said Pim van Ballekom, EIB Vice President.

The proceeds from the loan will be used to increase access to finance small and medium enterprises (SMEs) in Ethiopia that operate in manufacturing and agro-processing industries by establishing a credit facility that provides access for finance for leasing and working capital.

SMEs will be provided with toiled business development services to address issues of developing bankable business plans, quality of finance records, managing risks, business development and management, according to a press release issued by the Ministry of Finance and Economic Cooperation.

The agreement signed today is part of the 247 million Euros support announced by the bank for private enterprise financing program in Ethiopia.

The EIB has operated in Ethiopia since 1976 and prior to today’s announcement provided 400 million Euros to support long-term investment in energy, communications and water infrastructure, as well as private sector investment.