Addis Abeba, December 17/2018 – The International Finance Corporation (IFC) CEO Philippe Le Houérou signed two accords with the National Bank of Ethiopia to expand trade and local currency financing –”part of a broader effort by IFC play a significantly larger role in supporting development in Ethiopia by helping create new markets for private investors.”
The first agreement to support the National Bank of Ethiopia is part of the global trade finance program. “Under this program, IFC will provide guarantees for trade –related payment obligation of selected Ethiopian banks,” according to a statement released at the signing ceremony.
The second agreement will allow IFC to provide loans in Ethiopian birr under the local currency facility of the World Bank group’s International Development Association (IDA) private sector window. “The window allows IFC to provide support to high impact projects when local currency solution are otherwise unavailable. An improved credit reporting system supported by IFC will facilitate access to finance for consumers microenterprises and small and medium businesses in Ethiopia.”
During the signing ceremony, Minister of finance and Economic Cooperation, Ahmed Shide, hailed the agreement and said; “it’s a new window which helps Ethiopian private sector and gives additional capacity for development.’’
“Ethiopia is emerging as one of the most attractive investment destination in Africa and recent policy announcement are expected to further boost the country appeal to private investors,” said Philippe Le Houérou.
Dr. Yinager Dessie, Governor of the National Bank of Ethiopia, on his part said:“The two agreement deals can be very useful to our country. It will improve the existing foreign currency deficits and help the private sector develop.’’
In the past five years IFC has provided US$452 million in new investment commitments in Ethiopia across agribusiness, financial, manufacturing and other sectors. IFC is a sister organization of the world bank and member of the world bank group’s largest global development institution focused on the private sector in emerging markets. AS