Afreximbank Commits $500 million to support Ethiopian Commercial Banks

ADDIS ABABA – The African Export-Import Bank (Afreximbank) said it has committed to provide 500 Million US dollars to support Ethiopian commercial banks through its trade facilitation program.

The announcement came after bank held a meeting with the governor of the National Bank of Ethiopia, Dr. Yinager Dessie and CEOs of 17 commercial banks, on the Afreximbank Trade Facilitation (AfTRAF) program.



The program incorporates various products devised to increase intra-extra African trade volumes, diversify the character of this trade, and assure the confidence of trade partners in the settlement of international trade transactions for critical imports into Africa.

Specifically, the programme is designed to enable and escalate trade activities and investments through, among other measures: the provision of bank-to-bank Reimbursement, according to Afreximbank.

The Bank’s interventions in Ethiopia have traditionally been executed through its relationship with the country’s largest financial institution, the Commercial Bank of Ethiopia (CBE).

Today’s forum aims to develop Afreximbank’s strong partnerships with all commercial banks in Ethiopia, and facilitate provision of the AfTRAF Program to 10 other commercial banks in Ethiopia by the end of 2021.

“Commercial banks play an important role in facilitating and promoting trade – a core ingredient of economic growth,” said Rene Awambeng, Global Head, Client Relations of Afreximbank.

“Today’s forum serves to demonstrate the Bank’s commitment to support Ethiopia’s efforts to expand its trade capacity and establish the knowledge, infrastructure and resources by which this will be achieved,” he added.

The forum took place in the context of far-reaching reforms undertaken by the Government of Ethiopia to open up its economy for the participation of the private sector.

Central to this economic liberalization is the work of the National Bank of Ethiopia to reform the country’s banking sector.

These changes are expected to strengthen the capacity of Ethiopian institutions, including commercial banks, to accelerate the development of the Ethiopian economy through trade and investments, says the import export bank.

The reforms are also expected to increase Ethiopian trade with Africa and the rest of the world.

 

Featured Image: At least 17 Commercial banks’ CEOs and other officials from the financial sector attended the forum held in Addis Ababa today.

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