Dashen Bank and the African Development Bank (AfDB) signed a 40 million dollar Trade Finance Guarantee Facility Agreement on March 30, 2025, at Dashen’s headquarters in Addis Abeba. The deal, the first of its kind granted to a private bank, is planned to strengthen the country’s trade finance capacity and support key sectors such as agriculture, manufacturing, and energy. Dashen CEO Asfaw Alemu said the agreement reflects strategic alignment to unlock Africa’s potential and noted the bank’s progress in governance and operations. Dr. Leandre Bassole, AfDB Deputy Director General for East Africa, called the deal a “historic transaction” that will promote inclusive, private sector-led growth. The facility is expected to help Dashen support imports of critical goods like fertilisers, pharmaceuticals, solar panels, and farm machinery, and aligns with the African Continental Free Trade Area (AfCFTA) agenda. Under the arrangement, AfDB will offer guarantees to cover non-payment risks on trade finance instruments issued by Dashen, addressing the credit constraints faced by Ethiopian banks.
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