EIB, Zemen Bank Mobilise 40 Million Euros for Ethiopia’s Agri Exporters

By Mintesinot Nigussie

Ethiopian agricultural exporters are set to access up to 40 million euros in new financing following a strategic partnership. This deal between EIB Global and Zemen Bank marks a major milestone for the local banking sector.

The agreement represents the lender’s first direct credit line to a commercial bank in the country. It is expected to significantly boost the capacity of local businesses to compete on a global scale.

EIB Global will extend 20 million euros, which Zemen Bank will match to support export-oriented agriculture. The focus will be primarily on the high-value coffee and horticulture sectors which drive national income.

The financing is expected to ease access to foreign currency, a critical need for activities that generate international trade revenue. Agriculture accounts for more than one-third of Ethiopia’s gross domestic product.

The facility targets businesses across the entire agricultural value chain to ensure broad impact. At least 30 percent of the funds are specifically earmarked for climate-related investments and environmental sustainability.

A similar share is reserved for enterprises led by women or those providing employment opportunities for women. This reflects a dual focus on social inclusion and economic resilience within the rural economy.

The deal was announced in Addis Ababa during a major European Union–Ethiopia business forum. High-level officials emphasized that channeling funds through domestic lenders strengthens local financial systems.

The financing forms part of the “Green Agri Value Chain” programme backed by the European Union. It aims to improve the commercialisation of exports such as fruits, vegetables, and specialized herbs.

Zemen Bank will also participate in technical assistance programmes to improve risk management. This includes adopting higher environmental and social standards to meet international buyer requirements.

EIB Global has now invested about 577 million euros in Ethiopia across various vital sectors. This highlights the growing role of development finance in supporting the country's sustainable economic agenda.