The European Investment Bank (EIB) has signed technical assistance agreements with Zemen Bank, Dashen Bank, and Hibret Bank to strengthen their capacity to finance climate-related projects. The initiative is designed to help Ethiopian businesses adapt to climate risks and adopt sustainable practices.

The agreements were formalised during the Africa Climate Summit in Addis Ababa. They are part of the EIB’s Greening Financial Systems Programme, which is funded by the German government through the International Climate Initiative. The programme provides banks with institutional support to expand green lending.

Under the plan, the three banks will receive training and technical support to better assess and manage climate risks. This includes tools to guide investment into projects that improve resilience against droughts, floods, and other extreme weather events, as well as the capacity to evaluate the impact of shifting international climate policies on Ethiopian exporters.

Ethiopia has committed to achieving a net-zero economy by 2050. The collaboration with EIB will support local banks in developing green financial products aligned with the country’s Long-Term Low Emission Development Strategy. It follows a recent agreement between the EIB and the National Bank of Ethiopia to create a national green taxonomy for sustainable investment.

The initiative is the EIB’s third of its kind in Africa, following similar programmes in Kenya and Rwanda. Discussions are under way to extend the scheme to Nigeria, Morocco, Egypt, Uganda and the West African Monetary Union.