Ethiopia has secured a major €40 million financing package aimed at strengthening agricultural exports, marking a significant milestone for the country’s farming economy and small business sector. The deal brings together European Investment Bank Global and Zemen Bank SC in a strategic partnership designed to unlock capital for exporters.
Under the agreement, EIB Global will provide a €20 million credit line, while Zemen Bank will match it with an additional €20 million. As a result, the combined funding will support small and medium-sized enterprises operating across Ethiopia’s agricultural export value chain, especially in coffee and horticulture.
Notably, this marks the first direct loan extended by EIB Global to a commercial bank in Ethiopia. The financing will flow through Zemen Bank to licensed SMEs, ensuring that exporters of vegetables, fruits, herbs, and coffee gain improved access to capital.
Moreover, the initiative places strong emphasis on sustainability and inclusion. At least 30% of the funding will target climate-focused investments that promote environmental resilience. In addition, another 30% will go to women-led businesses or enterprises that actively support women through employment, products, or services. This dual focus reflects growing global demand for gender-inclusive and climate-smart financing models.
Speaking during the EU-Ethiopia Business Forum in Addis Ababa, Ambroise Fayolle highlighted agriculture’s central role in the country’s economy. He stressed that expanding access to finance will help mobilize private investment across the agricultural value chain while strengthening export performance.
At the same time, Dereje Zebene welcomed the collaboration, noting that it will boost productivity and drive inclusive growth. He emphasized that empowering farmers and SMEs remains critical to Ethiopia’s long-term economic development.
The financing forms part of the European Union’s “Green Agri Value Chain” initiative, which aims to enhance agricultural commercialization and increase foreign exchange earnings. It also aligns with global programs such as the “2X Challenge,” designed to expand financial access for women entrepreneurs worldwide.
Furthermore, Jozef Sikela stated that the investment will create jobs and strengthen Ethiopia’s export capacity. He pointed out that the initiative will open up new opportunities for young people while supporting climate-resilient production systems.
Agriculture remains a cornerstone of Ethiopia’s economy, contributing more than one-third of its GDP. Therefore, this financing is expected to play a vital role in boosting foreign exchange earnings and improving livelihoods across rural communities.
So far, EIB Global has invested €577 million in Ethiopia across key sectors such as renewable energy, water, transport, telecommunications, and private sector development. This latest deal further reinforces the European Union’s Global Gateway strategy in Africa, positioning agriculture as a driver of sustainable growth.
