Zemen Bank and IFC signed the trade finance partnership agreement on Friday

Zemen Bank Secures $30mln Trade Finance Facility from IFC

ADDIS ABABA – Zemen Bank and World Bank Group’s International Financial Corporation (IFC) forged a partnership to strengthen trade finance in Ethiopia with a 30 million US Dollars facility.

On Wednesday, IFC welcomed Zemen, one of the 32 commercial banks in Ethiopia, as the newest member of its Global Trade Finance Program (GTFP).

The two institutions signed a partnership agreement under the program that saw Zemen Bank secure IFC’s $30 million trade finance facility guarantee.

The facility aims to strengthen the Bank’s trade finance operations and assist in developing new trade partnerships for businesses in Ethiopia.

“Zemen Bank has been taking different impactful initiatives since its establishment, such as this one,” said Dereje Zebene, CEO of Zemen Bank.

“The facility will significantly boost trade finance for numerous import-export enterprises, particularly during periods of global economic volatility,” Dereje added.

The trade financing is also part of IFC’s $1 billion Africa Trade and Supply Chain Finance Program to support Africa’s regional trade development and help to reduce the continent’s reliance on imports.

Along with the trade finance facility, IFC will provide an advisory services project to boost the bank’s credit and risk management and SME lending work.

“Increasing access to trade finance is critical to boosting trade in Africa,” IFC Country Manager for Ethiopia Madalo Minofu said.

“Our partnership with Zemen 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,” she noted.

Under the GTFP, IFC has issued guarantees for more than $100 billion globally. In the 2023 financial year alone, IFC issued $9.1 billion, of which $3.5 billion was in Africa.