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Dashen Bank Secures $40 Million AfDB Trade Finance Guarantee

Dashen Bank has become the first private bank in Ethiopia to receive a USD 40 million Trade Finance Guarantee Facility from the African Development Bank (AfDB). The agreement, signed today at Dashen Bank’s headquarters, marks a significant milestone for both the bank and Ethiopia’s broader financial sector.

The agreement will strengthen Dashen Bank’s ability to support international trade by offering secure financial products like letters of credit with AfDB-backed guarantees. This addresses a key challenge for Ethiopian banks — limited access to international trade finance due to risk concerns from global financial institutions.

Asfaw Alemu, CEO of Dashen Bank, highlighted that this milestone reflects the bank’s strong governance, sound operations, and forward-looking strategy. He said the agreement will play a vital role in bridging trade finance gaps and enhancing Dashen Bank’s role in Africa’s development.

Dr. Leandre Bassole, Deputy Director General for East Africa at AfDB, called the partnership a key step in strengthening Ethiopia’s private sector and advancing inclusive economic growth. He noted it is the first direct trade finance guarantee the AfDB has issued in Ethiopia.

This facility is also aligned with the African Continental Free Trade Area (AfCFTA) goals, enabling Dashen Bank to help import essential goods such as fertilizers, medical supplies, solar panels, and agricultural equipment — all vital for Ethiopia’s economic transformation.

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Dashen Bank Secures $40 Million AfDB Trade Finance Guarantee

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