Casablanca, Morocco, December 10, 2024 —IFC and Ethiopia's Awash Bank today partnered to support increased trade in Ethiopia, providing local businesses with the financing they need to increase the flow of essential goods and services in and out of the country.
IFC's $20 million trade finance facility guarantee will help strengthen Awash Bank's trade finance operations, delivering support to Ethiopian businesses engaged in trade across a range of sectors. Additionally, IFC will provide advisory services to help strengthen Awash Bank’s risk and treasury management.
Under the partnership, Awash Bank joins as the newest member of IFC's Global Trade Finance Program (GTFP), which supports trade in emerging markets globally by providing guarantees to cover payment risks for trade-related transactions.
The partnership was announced during the Africa Financial Industry Summit (AFIS) 2024 in Casablanca, Morocco.
“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 also to drive financial inclusion and economic development in our country."
"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 the essential trade of goods and open the door to new trading partnerships for the country," said Aliou Maiga, IFC’s Regional Industry Director.
The trade line is part of IFC’s $1 billion Africa Trade and Supply Chain Finance Program (ATRI), which is supporting Africa's regional trade development and helping to reduce the continent's reliance on imports.
IFC is committed to supporting Ethiopia’s private sector growth, which is focused on strengthening agri-business value chains, supporting the growth of manufacturing, and increasing access to digital connectivity. Over the past five years, IFC has invested and mobilized more than $2.2 billion to support Ethiopia's agri-business, manufacturing, and financial sectors.
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2024, IFC committed a record $56 billion to private companies and financial institutions in developing countries, leveraging private sector solutions and mobilizing private capital to create a world free of poverty on a livable planet. For more information, visit www.ifc.org.
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About Awash Bank
Awash Bank was established in 1994, with 486 founding shareholders and began operations in 1995. Today, it is the largest private bank in Ethiopia in terms of assets, loans, deposits, paid-up capital, branch network, etc… with nearly 12 million customers, providing a wide range of financial services to individuals, businesses, and institutions across the country. The bank counts more than 11k shareholders, of which two shareholders above 2% ownership.
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