In a historic first for Ethiopia’s private banking sector, Dashen Bank has teamed up with the African Development Bank (AfDB) to sign a $40 million Trade Finance Guarantee Facility Agreement. That’s not just a long name—it’s a game changer.
Held at Dashen’s headquarters in Addis Ababa, the signing marked a major step forward in helping Ethiopia’s economy trade more smoothly with the rest of the world.
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So… what does this deal actually do?
Great question!
The agreement gives Dashen Bank the power to support importers and exporters by issuing trade finance tools—like letters of credit—with a safety net from AfDB. In simple terms: if an importer says “I’ll pay you later,” AfDB is like “Don’t worry, if they don’t, I got it.”
This is a huge win for Ethiopian businesses that have struggled to get access to international credit. Now, with AfDB backing them, Dashen can help bring in more essential goods like:
- Fertilizers (for farmers),
- Pharmaceuticals (for health),
- Solar panels (for clean energy), and
- Agricultural equipment (because oxen can only do so much).
What the leaders said:
Asfaw Alemu, CEO of Dashen Bank, said this deal is proof of Dashen’s strength in governance and strategy:
“This facility is a first-of-its-kind. It shows we’re ready to play a big role in transforming trade in Ethiopia.”
(Translation: We’re not just playing catch-up—we’re setting the pace.)
AfDB officials, including Dr. Léandre Bassolé and Mr. Ahmed Rashad Attout, agreed that this deal will boost private-sector-led growth and help integrate Ethiopia more deeply into African trade—especially under the AfCFTA framework.
Quick flashback:
This isn’t Dashen’s only big move lately.
The bank also recently announced a partnership with Accion and the Mastercard Center for Inclusive Growth to create a digital innovation hub that supports small businesses—especially those run by women. It uses AI, new credit scoring models, and embedded finance tools to bring more people into the financial system.
So yes—Dashen Bank is on a roll.
Dashen Bank just signed a $40M deal with AfDB to make trade finance easier in Ethiopia. That means more support for importing essentials, better access to global markets, and a big boost for the economy.
And with its new innovation hub, Dashen isn’t just banking—it’s building the future.
