European bank to give Ethiopia $281m credit
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European bank to give Ethiopia $281m credit

Posted ANDUALEM SISAY in Addis Ababa

on  Thursday, June 29   2017 at  14:37

The European Investment Bank (EIB) will provides $281 million credit to small business across Ethiopian, official said.

Bank Vice-President Pim van Ballekom said: “This project confirms the EU Bank’s increased backing for financial services and enterprise crucial for future generations of Ethiopians.”

“Access to finance is essential for private enterprise to expand and innovate. This new initiative will support the local entrepreneurship and the creation of manufacturing jobs by hundreds of companies across Ethiopia.

"The strengthened partnership with the Development Bank of Ethiopia represents the European Investment Bank’s largest ever engagement with Ethiopia and demonstrates the European Union’s clear commitment to help unlock sustainable economic activity in this country,” explained Mr Ballekom.

Largest ever

The money will be managed by the state Development Bank of Ethiopia.

The EIB and the World Bank initiative represents the first international support to the Ethiopian financial sector and the former's largest ever engagement with Addis Ababa.

The deal will boost financing for local companies by Ethiopian microfinance institutions, commercial banks and leasing firms, according EIB.

EIB has been supporting investment to improve energy, water supply, communications and private enterprise across Ethiopia for more than 40 years, and remains a key partner for sustainable development in the country.

Private sector

The European bank has operated in Ethiopia since 1976 and prior to the Thursday deal, provided more than $460 million to support long-term investment in energy, communications and water infrastructure, as well as private sector operations.

EIB is the world’s largest international public bank, owned directly by the 28 European Union member states.

Over the last five years, EIB has provided more than $25 billion for investment in Africa.