Dashen Bank has signed an agreement to access $40 million in foreign exchange financing to support Ethiopia's agricultural export sector.
The signing ceremony saw British International Investment and FMO, the Dutch development bank, each commit up to $20 million to Dashen Bank.
The funds will be borrowed in foreign currency from BII and FMO and on-lent by Dashen in US dollars and euros to agricultural export businesses. This aims to help finance export operations and market access.
It marks one of the first instances of a local Ethiopian bank borrowing significant funds from foreign lenders for agricultural export sector lending.
Attended by National Bank of Ethiopia Governor Mamo Mihretu and UK Minister for Africa Andrew Mitchell, the financing is expected to provide a major boost to Ethiopia's economic diversification and increasing lucrative exports.