The Ethiopian Development Bank has turned around its fortunes in recent years, thanks to a series of reform measures that have helped the bank overcome bankruptcy and become profitable.

In 2019/2020, the bank's capital stood at Birr 2.6 billion, and it was on the brink of collapse. However, the implementation of the reform measures has led to a significant increase in the bank's capital, which now stands at Birr 38 billion. The bank has also reported a profit of Birr 6.4 billion in the 2022/23 fiscal year, and its profitability has been sustained for three years.

The bank's lending capacity has also increased, enabling it to provide loans of up to Birr 8 billion for a single project. As a policy bank, the Ethiopian Development Bank aims to direct the country's resources towards productive sectors, particularly agriculture. The bank offers loans with a repayment period of up to 20 years and an interest rate of 11.5 percent. These terms are designed to encourage investment in these sectors.

Source: Addis Zemen