Afreximbank ink MoU with NBE to Avail $1 Billion Credit Facility to Ethiopia

ADDIS ABABA – The National Bank of Ethiopia (NBE) and African Export-Import Bank (Afreximbank) signed a memorandum of understanding (MOU) expected to inject more than a billion US Dollars in support of trade and investment in the East African nation.

Central Bank Governor, Yinager Dessie, and Afreximbank President and Chairman, Benedict Oramah, signed the agreement in Addis Ababa on Tuesday.



As per the MoU, Afreximbank will make more than a billion USD credit available in support of common areas of interest, especially trade and private investment in Ethiopia.

It will be distributed to Ethiopian commercial banks that will avail the fund for private sector.

– Critical Timing –

Though Ethiopia is a member of the Pan-African multilateral finance institution, the cooperation between the two has not been strong enough.

They are now going towards forging a collaboration “at a critical time” for the east African nation’s economy with the signing of the MoU.

The bilateral cooperation with the Afreximbank was forged at a “critical time when the impact of COVID-19 pandemic has been felt throughout the economic and social spectrum,” said Central Bank Governor Yineger.

“Upon implementation of the MoU we signed today, Afreximbank will provide us with over 1 billion USD credit to be distributed to the public and private banks for the private sector,” the Governor explained.

– key sectors a target –

The Cairo-headquartered bank signed the MoU five months after its officials held discussion with CEOs of 17 Ethiopian commercial banks over Trade Facilitation Program – which aims to unlock capital to support trade finance in Africa.



The Bank’s President Benedict said the bank has now decided to work with the national bank and local banks to scale up trade and investment productivity in the country.

“Through this MoU, we affirm our collective determination to accelerate the ongoing collaboration and to strengthen the financial and corporate sectors, which are engines of sustainable development in this country,” he said.

The new agreement is expected to further boost the relationship private banks have with Afreximbank, whose previous key investments in Ethiopia was implemented via its links with a State-run Commercial Bank of Ethiopia (CBE).

 

– EM/Agencies

 

Featured Image Caption: Governor of the National Bank of Ethiopia, Yinager Dessie and Afreximbank President and Chairman, Benedict Oramah, signed the MoU in Addis Ababa on February 8, 2022. [Photo ENA]

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