The European Investment Bank (EIB) and Ethiopia’s Dashen Bank announced a partnership on Thursday, 29 October 2026, to make €40 million in loans available to small and medium-sized businesses in Ethiopia. EIB Global, the EU lender’s development arm, will provide a €20 million loan, which Dashen Bank will match before extending financing to eligible businesses.
The programme is designed to offer longer repayment periods than are generally available in Ethiopia’s domestic banking market. Agriculture and related activities will receive at least 70% of the funding, with coffee, pulses, fruit, vegetable and cereal businesses among the intended beneficiaries. Export-oriented firms are a particular focus, as access to longer-term capital can help them modernise production and meet the requirements of overseas buyers.
Climate investment and women-led businesses
The partnership also sets two cross-cutting targets. At least 30% of the financing will support climate action and environmental sustainability, while a minimum share of the same size will advance women’s economic empowerment. Dashen Bank will apply these priorities when selecting projects across the eligible business sectors.
Alongside the credit facility, EIB Global will provide technical support covering project identification, environmental and social risk assessment, and investment monitoring. Funded by the European Union through the ACP Trust Fund, the assistance is intended to strengthen Dashen Bank’s lending capabilities. The Ethiopian private bank operates more than 900 branches nationwide.
The initiative forms part of Ethiopia’s gradual financial-sector opening and the EIB’s efforts to finance the country’s agricultural value chains. In April 2026, EIB Global announced a similar €40 million arrangement with Zemen Bank, combining a €20 million European contribution with matching local funding. Bringing Dashen Bank into this lending model expands the group of Ethiopian banks working with the EIB to support smaller businesses.