NBE Signs MoU with AFREXIMBANK - National Bank

NBE Signs MoU with AFREXIMBANK

NBE Signs MoU with AFREXIMBANK

Addis Ababa. The National Bank of Ethiopia NBE) and African Export-Import Bank (Afreximbank) signed a Memorandum of Understanding (MoU) in a bid to support trade and investment activities in Ethiopia.

Dr. Yinager Dessie, Governor of National Bank of Ethiopia (NBE), and Professor Benedict Oramah, President and Chairman of Afreximbank, signed the MoU.

Upon the signing, held on February 8,2022, at Sheraton Addis, it was disclosed that the African Export-Import Bank (Afreximbank) will provide more than $1 billion loan to support the trade and investment of private and public sectors in the country in the form of line credits.

Governor of National Bank of Ethiopia (NBE) Dr. Yinager Dessie, on the occasion stated that upon implementation of the MoU signed, Afreximbank will provide the loan with the stated amount of USD to the public and private banks which in turn give credit both to the public and private sector.

“The loan agreement is important to solve the country’s foreign exchange shortage and stimulate the economy,” the Governor added. “particularly at a critical time like now when the COVID-19 pandemic has affected  the country’s socio-economic spectrums, which are critical elements for development, job creation and poverty reduction.”

“As a matter of fact” the Governor said, “the MoU aims at strengthening our bilateral cooperation, with in which creating a broad framework for collaboration in areas of common interest, particularly in the field of trade and investment.”  

President and Chairman of Afreximbank, Professor Benedict Oramah, on his part expressed his bank’s commitment to support Ethiopia’s development and growth. He also praised the reform in Ethiopia that proved resilient economy during the pandemic.

“Even when major developing economies witnessed growth contraction at the height of the pandemic, Ethiopia proved its resilience by maintaining a robust growth trajectory posting a commendable 6.1 percent growth rate in 2020,” the Professor said citing to World Bank data.

Afreximbank has identified the enthusiasm and opportunities of trade and investment in Ethiopia, and decided to work with the NBE and other designated local banks of the country.  

Professor Benedict Oramah underscored, “Through this MoU, we affirm our collective determination to accelerate the ongoing collaboration and to strengthen the financial and corporate sectors, which are engines of sustainable development in this country.”

Ethiopia is member to the African Export-Import Bank, but the collaboration needs to be boosted hereafter.  

Headquartered in Cairo, Egypt, African Export–Import Bank (Afreximbank) is a pan-African multilateral trade finance institution created in 1993 under the auspices of the African Development Bank (AfDB).

V/Governors and concerned directors of the National Bank of Ethiopia (NBE), and presidents of  of private banks were also present at the signing ceremony.

The National Bank of Ethiopia was established in 1963 by proclamation 206 of 1963 and began operation in January 1964. Prior to this proclamation, the Bank used to carry out dual activities, i.e. commercial banking and central banking.

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