Zemen Bank has secured a USD 30 million trade finance facility from the International Finance Corporation (IFC), a move aimed at bolstering the country's import and export activities.

Through this agreement, Zemen Bank joins IFC's Global Trade Finance Program (GTFP), gaining access to a trade financing facility. This USD 30 million guarantee is expected to strengthen Zemen's trade finance operations and enable the formation of new trade partnerships for Ethiopian companies. Dereje Zebene, CEO of Zemen Bank, emphasized the program's potential to significantly boost trade finance, especially during periods of global economic instability. Madalo Minofu, IFC Country Manager for Ethiopia, expressed optimism about the partnership, believing it will strengthen Ethiopia's ability to finance essential trade and facilitate new trade partnerships.

This initiative, which comes amidst concerns about foreign currency shortages and payment delays, aligns with IFC's broader Africa Trade and Supply Chain Finance Program, which aims to promote regional trade within Africa and reduce the continent's reliance on imports. Additionally, IFC will provide advisory services to Zemen Bank to strengthen its credit and risk management and support lending to small and medium-sized enterprises (SMEs).

Source: Capital Ethiopia