African Development Bank

The African Development Bank is developing a strategy that will allow it to enhance its financing to the private sector in Ethiopia.The minimum amount of loan that the bank offers to private companies is 10 million US dollars said Gebriel Negatu, Director of the AfDB’s East African Regional Center speaking at an event to introduce the new policy strategy with leaders of the East African private sector held at Addis Ababa, Hilton.

The private sector in the country is not yet able to sustain large loans which make it difficult to provide financing in Ethiopia said the Director.

The bank expects to consult stakeholders on how best to provide financial support to the private sector here said Gabriel.

It is to be remembered that bank has co-financed the fleet expansion project of the Ethiopian Airlines providing 40 million US dollars. Derba MIDROC was also the first private company to receive funding from the bank receiving 55 million US dollars.

The bank’s loan portfolio in more than 30 member countries currently stands at 10 billion US dollars. The bank also provides funding for energy and road sectors with Ethiopia being one of the top beneficiaries of the bank’s support in the public sector.

The bank’s role in financing infrastructure to help integrate trade between African countries is to be encouraged said Mekonnen Manyazewal, Ministry of Industry present at the event.

Source: http://www.2merkato.com/201207091409/adb-to-provide-more-financing-to-ethiopian-private-sector