IPDC Signs Agreement with Awash and COOP

Jun 26 , 2021


[ssba-buttons]

The Industrial Parks Development Corporation (IPDC) has partnered with Awash Bank and the Cooperative Bank of Oromia as its two sole financial service providers. The banks are expected to provide credit services for the Corporation's 800 employees and the its 13 industrial parks it operates throughout Ethiopia. The Corporation, in exchange, will use the two banks to pay salaries to its workers and collect rent from factories having shades inside the parks. While the Corporation has chosen the two banks to oversee its transactions, investors stationed in the parks can choose banks of their preference. The Corporation picked the two financial institutions after shortlisting six banks from 18 interested applicants for the service. IPDC has so far invested more than 45 billion Br in the construction of the parks, which are currently generating 24 million dollars annually through rental fees. It has created job opportunities for more than 76,000 people.


Radar

Dangote, EIH Break Ground on Mega Fertilizer Plant in Somali Region

Ethiopian Investment Holdings (EIH), the state's sovereign investment arm, has struck a deal with Dangote Group to build one of the world's largest urea fertiliser complexes in Gode, Somali Regional State. The 2.5 billion dollars project will see EIH hold a 40pc stake while Dangote keeps 60pc. With agriculture employing over 70pc of Ethiopians, the government hopes the factory will cut fertiliser costs, create jobs, and boost crop yields while positioning the country as a regional hub. Design...


Radar

CBE Capital Joins Nib Bank for Market Expansion

Nib International Bank has partnered with CBE Capital, the investment arm of the Commercial Bank of Ethiopia (CBE), to expand investment banking services and shore up its finances. The deal covers advisory services, seeking to strengthen Nib's balance sheet, attracting capital, and positioning the bank in a modernising financial sector. The partnership follows a difficult year for Nib, where net profit dropped 36pc to 957.9 million Br and deposits shrank, despite paid-up capital climbing to ...


Radar

Credit Cap Nears Lift-Off

The National Bank of Ethiopia (NBE) is preparing to lift its long-standing credit cap by September, unlocking 1.3 trillion Br in bank lending. The move, flagged by board member and State Minister of Finance Eyob Tekalegn (PhD), follows years of complaints from businesses that borrowing limits choked large-scale projects. Eyob told a local radio station the reform reflects rising investor appetite and improved economic conditions, though he admitted "financing has been the biggest bottleneck for...