Ethiopia receives €110 million from EIB Global to support agri-finance, with focus on women

• Development Bank of Ethiopia to channel €110 million financing from EIB Global for country’s rural agricultural enterprises
• Credit to be channelled through Rural Savings and Credit Cooperatives and microfinance institutions
• Female beneficiaries to get 50% of financing while 20% targets climate adaptation projects
• Project is part of Global Gateway, EU’s external strategy for sustainable development

The European Investment Bank’s international development arm, EIB Global, is committing €110 million to help farmers in Ethiopia improve productivity, expand their businesses and cope with climate change. The Development Bank of Ethiopia (DBE)will channel the EIB Global credit line to local institutions that lend to agricultural enterprises in rural areas, with 50% earmarked for women and 20% targeting climate adaptation.  

The operation supports the third phase of Ethiopia’s “Rural Financial Intermediation Programme”, or RUFIP III, a flagship Ethiopian government initiative to strengthen the agricultural sector’s access to finance, competitiveness and resilience. Funds will be managed by the Development Bank of Ethiopia and on-lent to Rural Financial Institutions, including microfinance institutions and Rural Savings and Credit Cooperatives (RUSACCOs).

The final beneficiaries of this financing will mainly be smallholder farmers and MSMEs, with an emphasis on women and youth. Women make up more than half of Ethiopia’s agricultural workforce and have unequal access to finance. Closing this gap advances European Union goals to enhance rural financial inclusion worldwide.

The operation is also expected to contribute to climate action and environmental sustainability by 20%, particularly in supporting resilience of rural communities to droughts, floods or pests and thus contributing to adaptation goals aimed at appropriate environmental risk management procedures.

“In the face of two of today's most pressing challenges – climate change and social inequalities –  we need more inclusive finance to leverage the power of diversity and women’s role in climate action,” said EIB Vice-President, Ambroise Fayolle. “This is not just the right thing to do but also a strategic investment in the overall resilience of communities.”

Anticipated results of RUFIP III include improved access to finance, higher agricultural productivity, increased household incomes, and strengthened resilience of rural livelihoods. This is in line with Ethiopia’s National Financial Inclusion Strategy II and the EU’s Global gateway Strategy for Africa.

“The Development Bank of Ethiopia is honoured to play a central role in delivering this transformative financing to rural communities across the country,” said Development Bank of Ethiopia President, Dr. Esayas Kassa. “This program aligns closely with our strategic focus on sustainable development, climate-conscious investment, and inclusive financial systems. By strengthening rural financial institutions and expanding access to credit, we are laying the foundation for a more resilient, productive, and equitable agricultural sector.”

The project has an €8.5 million technical assistance component supported by the EIB-managed Africa, Caribbean and Pacific (ACP) Trust Fund. A dedicated allocation will subsidise insurance premiums for climate-risk products, enabling RUSACCOs and MFIs to offer weather-index insurance to smallholder farmers protecting them against climate threats while reducing credit risk for participating financial intermediaries to motivate them to expand sustainable agriculture lending.

It will also offer capacity-building support to RUSACCOs and MFIs to reinforce their lending practices and expertise in the agriculture sector as well as their ability to enforce environmental and social policies. In addition, agricultural businesses will gain financial literacy, adopt improved agricultural practices and implement climate‑adaptation measures.

The operation builds on more than 40 years of cooperation between EIB Global and Ethiopia.

“This landmark agreement marks a significant strengthening of the longstanding partnership between Ethiopia and the EIB,” said Ethiopian Minister of Finance, Ahmed Shide. “By improving access to finance for micro-enterprises and small businesses through our rural financial Institutions, this project will promote sustainable agricultural and economic practices across all regions of Ethiopia.”

“Ethiopian smallholder farmers, and especially women, will have access to finance they have never had before to grow their businesses, adapt to climate change, and build more stable livelihoods,” said European Commissioner for International Partnerships, Jozef Sikela. “Through Global Gateway, Europe is investing in rural financial inclusion in one of Africa's fastest-growing agricultural economies — because a more prosperous Ethiopia is a stronger partner for Europe.”

The EIB Global financing builds on the close collaboration with International Fund for Agricultural Development (IFAD), a co-financier of RUFIP III, Food and Agriculture Organisation (FAO) providing advisory support to DBE, and the World Food Programme piloting climate risk insurance to strengthen the resilience of rural finance.

EIB Global continues to engage with the Ethiopian government to support sectors such as energy, small and medium-sized enterprises (SMEs), water, sanitation and hygiene (WASH), and women’s entrepreneurship.

EIB Global plans to expand on its existing €577 million investment portfolio in Ethiopia with more projects in the works.

Background information

About the EIB:

The European Investment Bank (ElB) Group is the financing arm of the European Union, owned by the 27 Member States, and one of the largest multilateral development banks in the world. In 2025, the EIB Group signed €100 billion of new financing and advisory services for over 870 high-impact projects in eight core priorities that support EU policy objectives: climate action and the environment, digitalisation and technological innovation, security and defence, territorial cohesion, agriculture and the bioeconomy, social infrastructure, strong global partnerships and the savings and investment union.

EIB Global is the EIB Group’s specialised arm devoted to increasing the impact of international win-win partnerships and development finance, and a key partner of Team Europe and the Global Gateway strategy. EIB Global brings the EIB Group closer to people, companies and institutions through its offices across the world.  

Photos of the EIB Group's spokespeople and headquarters, logo files and video B-roll for media use are available here.