AfDB Backs Dashen Bank with $40m for Trade Finance

Executives of Dashen Bank have secured a 40 million dollar transaction guarantee facility from the African Development Bank Group (AfDB). The funding is expected to boost import and export trade for Small and Medium-Sized Enterprises (SMEs) and local corporations and contribute to the implementation of the African Continental Free Trade Area (AfCFTA) by promoting intra-Africa trade. Asfaw Alemu, CEO of Dashen Bank, praised the value of supporting SMEs in sectors such as agriculture and manufacturing. He said the partnership with AfDB is a substantial step in their effort to become an industry leader. "This is instrumental in expanding our trade services regionally," he said. Dashen is one of the leading commercial banks in the country. The AfDB will provide a full guarantee to confirming banks for non-payment risks arising from Letters of Credit and similar trade finance instruments issued by Dashen Bank. According to Nnenna Nwabufo, AfDB Director General for East Africa, trade finance is crucial for economic growth and cross-border trade, especially in emerging markets. "We are thrilled to partner with a leading institution with deep knowledge of the Ethiopian market," she said