2merkato

The International Finance Corporation (IFC) signed an agreement with NIB International Bank to make an additional 10 million dollars available towards helping farmer cooperatives in Ethiopia on Oct 13.

The IFC and NIB have a risk sharing arrangement already in place to help forty five thousand coffee farmers in 62 cooperatives in Oromia and Southern Nations, Nationalities and Peoples Regional States. The two financial organizations have worked together to set up a 10 million dollar facility for coffee farmers in the past according to Amerga Kassa President of NIB. 

The International Finance Corporation, private sector arm of the World Bank, urged Ethiopian businesses to ask for more funding. Very few Ethiopian projects are receiving help from IFC according to Jean Philippe Prosper, IFC director for Eastern and Southern Africa.  

The IFC is interested in investing in agro-industry, primarily coffee, as well as in the areas of banking, mining and leasing he said in a meeting with some of the larger Ethiopian businesses this week. The IFC plans to address concerns, in regards to the long term viability of funding from the IFC, raised by the business community during the discussions said Mr. Prosper.

The International Finance Corporation is expected to make 85 million US dollars available in financing to private businesses in Ethiopia according to Adamou Labara, IFC Resident Representative in Ethiopia.

The IFC Ethiopia office has already provided 85 million US dollars to businesses over the past two and a half years.

The 85 million in the IFC portfolio is minimal in comparison to the size and potential of the Ethiopian economy said Labara.

The International Finance Corporation (IFC), member of the World Bank Group is to cooperate with the Ethiopian Ministry of Trade (MoT) and Ethiopian Revenue and Customs Authority (ERCA) to help improve the country’s investment and trade environment.

The Ministry of Trade will launch an electronic business licensing and trade registration system shortly, while Ethiopian Revenue and Customs Authority will consider to revise its laws.

The International Finance Corporation (IFC) signed an agreement with the National Bank of Ethiopia (NBE) that focuses on expanding trade and financing local currency. This agreement is part of multi-year partnership entered by IFC and NBE with the intent of developing Ethiopia's promising credit reporting system.