On April 9, Wegagen Bank and the International Finance Corporation (IFC), a member of the World Bank Group, signed a strategic partnership agreement to establish a USD 10 million trade finance guarantee facility.
The agreement was formalized by Dr. Aklilu Wubet, Chief Executive Officer of Wegagen Bank, and Madalo Minofu, the IFC Country Manager for Ethiopia, Malawi, and Zambia.
The USD 10 million facility is designed to expand Wegagen Bank’s trade finance operations, supporting Ethiopian businesses engaged in import and export activities across various sectors. Through this partnership, Wegagen Bank joins the IFC’s Global Trade Finance Program (GTFP), an initiative that provides guarantees to mitigate payment risks in trade transactions within emerging markets.
This financial agreement builds upon ongoing advisory services the IFC currently provides to Wegagen Bank. These services focus on strengthening the bank’s risk management practices, trade service functions, and treasury operations.
Speaking at the signing, Dr. Aklilu stated that the partnership represents a milestone for the bank and will improve customer service capabilities. He noted that Wegagen Bank intends to expand its collaboration with the IFC into other areas to support financial inclusion and broader economic development in Ethiopia.
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