The European Investment Bank Group’s development arm, EIB Global, has partnered with Ethiopia’s Zemen Bank to mobilise up to €40 million in financing for agricultural enterprises. Under the agreement, EIB Global is providing a €20 million credit line, which Zemen Bank will match, doubling the available funding. This marks the first direct loan extended by EIB Global to a commercial bank in Ethiopia.
The financing will be channelled through Zemen Bank to support Ethiopian small and medium-sized enterprises (SMEs), particularly those engaged in agricultural exports such as coffee and horticultural products. A significant share of the funding is designed to promote sustainability, with around 30% targeted toward climate action and environmentally responsible businesses.
The initiative also places strong emphasis on gender inclusion. At least 30% of the total financing is expected to support SMEs that are owned or led by women, or that provide employment, products, or services benefiting women. The agreement was announced in Addis Ababa during an EU–Ethiopia Business Forum attended by European and Ethiopian officials, reflecting agriculture’s importance as a sector contributing more than one-third of Ethiopia’s GDP.
European officials highlighted that the investment aims to strengthen Ethiopia’s agricultural value chains, improve export capacity, and expand access to finance for SMEs. The programme is part of the EU’s broader “Green Agri Value Chain” initiative, which supports the export of high-value agricultural products like coffee, fruits, vegetables, and herbs, while also generating foreign exchange for the country.
The financing aligns with wider European initiatives promoting women’s economic participation and climate-resilient development, including global programmes supporting women entrepreneurs and sustainable investment. Zemen Bank, which operates over 140 branches across Ethiopia, will also receive technical assistance to strengthen climate and environmental risk management systems and improve sustainable banking practices.
Overall, the partnership is framed as part of the EU’s Global Gateway strategy to support sustainable growth, biodiversity, and resilient agri-food systems in Africa. Ethiopia has already begun strengthening export compliance systems such as digital coffee traceability to meet international regulations, and the EIB Group has previously invested heavily in the country across energy, transport, water, and SME financing sectors.
