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    Signature(s)

    Amount
    € 70,000,000
    Countries
    Sector(s)
    Ethiopia : € 70,000,000
    Credit lines : € 70,000,000
    Signature date(s)
    18/05/2017 : € 70,000,000

    Summary sheet

    Release date
    19 April 2016
    Status
    Reference
    Signed | 18/05/2017
    20150921
    Project name
    Promoter - financial intermediary
    LEASING AND LENDING FOR SMES
    DEVELOPMENT BANK OF ETHIOPIA
    Proposed EIB finance (Approximate amount)
    Total cost (Approximate amount)
    EUR 70 million
    Not applicable.
    Location
    Sector(s)
    Description
    Objectives

    A loan to the Federal Democratic Republic of Ethiopia, acting through the Ministry of Finance and Economic Cooperation (MoFEC) of Ethiopia for onlending to small and medium-sized enterprises (SMEs). The loan will be part of a wider SME support scheme led by the World Bank and to be implemented by the Development Bank of Ethiopia (DBE). The scheme will provide sustainable access to finance and capacity-building to DBE, leasing companies, microfinance institutions, commercial banks and SMEs in Ethiopia.

    The project objective is to increase access to finance for eligible small and medium-sized enterprises in Ethiopia.

    Environmental aspects
    Procurement

    Final beneficiaries will be requested to comply with applicable national regulations, including international conventions ratified by the host country, as well as EU standards. Where EU standards are more stringent than national standards, the higher EU standards are required, if practical and feasible.

    The Bank will require the promoter to ensure that the implementation of the project will be done in accordance with the Bank's Guide to Procurement.

    Comments

    The EIB loan will finance two parallel windows: a leasing window and a lending window. Under the first window, DBE will act as a retailer of lease finance (through its regional branches) and as a wholesaler (through leasing companies); under the second window, DBE will exclusively act as a wholesaler (through microfinance institutions and commercial banks) for the provision of working capital to SMEs. It is expected that the leasing window will absorb 80% of the funding, or EUR 200m indicatively, while the remaining 20% will be allocated to lending.

    Disclaimer

    Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The data provided on this page is therefore indicative and cannot be considered to represent official EIB policy (see also the Explanatory notes).

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    Any complaint regarding alleged maladministration can be lodged via the EIB Complaints Mechanism. The European Ombudsman acts as an independent external accountability mechanism of the EIB.

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    The EIB has a zero tolerance policy on fraud or corruption. To report allegations of fraud and corruption relating to EIB-financed projects, please contact the Fraud and Investigation division. All complaints will be treated as strictly confidential and handled in line with the EIB investigation procedures and the Anti-Fraud Policy.

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