On April 9, Wegagen Bank and the International Finance Corporation (IFC), a member of the World Bank Group, signed a strategic partnership agreement to establish a USD 10 million trade finance guarantee facility.
The agreement was formalized by Dr. Aklilu Wubet, Chief Executive Officer of Wegagen Bank, and Madalo Minofu, the IFC Country Manager for Ethiopia, Malawi, and Zambia.
The USD 10 million facility is designed to expand Wegagen Bank’s trade finance operations, supporting Ethiopian businesses engaged in import and export activities across various sectors. Through this partnership, Wegagen Bank joins the IFC’s Global Trade Finance Program (GTFP), an initiative that provides guarantees to mitigate payment risks in trade transactions within emerging markets.
This financial agreement builds upon ongoing advisory services the IFC currently provides to Wegagen Bank. These services focus on strengthening the bank's risk management practices, trade service functions, and treasury operations.
Speaking at the signing, Dr. Aklilu stated that the partnership represents a milestone for the bank and will improve customer service capabilities. He noted that Wegagen Bank intends to expand its collaboration with the IFC into other areas to support financial inclusion and broader economic development in Ethiopia.
Madalo Minofu highlighted the practical impact of the agreement on local businesses. "This partnership with Wegagen Bank reflects IFC’s commitment to expanding access to trade finance in Ethiopia, where many businesses, especially small and medium-sized enterprises, continue to face constraints in financing their cross-border trade," Minofu said.
She added, "By joining IFC’s Global Trade Finance Program, Wegagen Bank will be better positioned to help local firms access essential inputs, meet demand, and connect to regional and global markets. Beyond financing, our collaboration also includes advisory support to strengthen the bank’s risk management and treasury functions, helping build a more resilient institution that can support jobs and private-sector growth over the long term."
Approaching its 29th anniversary this June, Wegagen Bank is the first private commercial bank listed on the Ethiopian Capital Market. The institution operates 463 branches nationwide, offering both conventional and interest-free banking services. As part of its financial inclusion strategy, the bank provides digital credit facilities, primarily targeting women, informal businesses, and micro, small, and medium enterprises (MSMEs), through its uncollateralized Efoyta digital lending platform. The bank also maintains digital channels including internet, mobile, agent, and card banking.
Source (including image): A press release sent to 2Merkato from Wegagen Bank
