The International Finance Corporation (IFC) and Ethiopia’s Awash Bank have joined forces to bolster trade in Ethiopia, with the goal of providing local businesses the financing needed to facilitate the movement of essential goods and services in and out of the country.
Announced at the Africa Financial Industry Summit (AFIS) 2024 in Casablanca, the partnership includes a $20 million trade finance facility guarantee from IFC to enhance Awash Bank’s trade finance operations. The initiative will also include advisory services to strengthen Awash Bank’s risk and treasury management capacities.
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Through this collaboration, Awash Bank becomes the newest member of IFC’s Global Trade Finance Program (GTFP), which is designed to support trade in emerging markets worldwide by providing guarantees that mitigate payment risks for trade-related transactions.
“This partnership with IFC is a significant milestone for Awash Bank. It will enable us to better serve our customers,” said Tsehay Shiferaw, CEO of Awash Bank. “We are committed to leveraging the collaboration with IFC in other areas to drive financial inclusion and economic development in our country.”
Aliou Maiga, IFC’s Regional Industry Director, highlighted the importance of the partnership in fostering trade and economic growth. “Increasing access to trade finance is critical to boosting trade in Africa. Our partnership with Awash Bank through IFC’s Global Trade Finance Program will contribute to strengthening Ethiopia’s ability to finance essential trade of goods and open the door to new trading partnerships for the country,” he said.
The trade line forms part of IFC’s $1 billion Africa Trade and Supply Chain Finance Program (ATRI), which supports the development of regional trade and aims to reduce the continent’s reliance on imports.
IFC has been actively supporting Ethiopia’s private sector growth, focusing on strengthening agri-business value chains, expanding manufacturing, and improving access to digital connectivity. Over the past five years, the organization has invested and mobilized over $2.2 billion in Ethiopia’s agriculture, manufacturing, and financial sectors.
