Ethiopia’s Zemen Bank and EIB disburse $46.7M for women-led agribusinesses targeting EU markets

Ethiopia’s Zemen Bank and the European Investment Bank disbursed $46.7 million to support women-led agribusinesses targeting European Union markets, officials said Tuesday. The financing, structured as a €40 million credit line with long-term loans, aims to enhance access to finance for agricultural SMEs, with at least 30% of funds dedicated to women-owned or led businesses.

The financing package, totaling €40 million (approximately $47 million), was announced April 20, 2026, during the EU–Ethiopia Business Forum in Addis Ababa, officials said. The funds are structured as long-term loans with maturities of up to 12 years, available in euros or U.S. dollars to local beneficiaries, sources confirmed.

The European Investment Bank (EIB) Global provided a €20 million credit line to Zemen Bank, which matched the amount, marking the first direct loan extended by EIB Global to a commercial bank in Ethiopia, according to EIB representatives.

At least 30% of the financing is earmarked for small and medium-sized enterprises (SMEs) owned or led by women, officials noted. The initiative also supports businesses that provide employment, products, or services benefiting women, aligning with the 2X Challenge criteria established by development finance institutions, according to Zemen Bank statements. Technical assistance accompanying the financing aims to expand the bank’s outreach to women entrepreneurs and enhance access to previously unavailable long-term financing mechanisms, officials added.

The credit line targets agricultural SMEs engaged in export-oriented value chains, with a focus on coffee and horticultural products such as fruits, vegetables, and herbs, records show. Agriculture contributes more than one-third of Ethiopia’s gross domestic product, making the sector strategically important to the country’s economy, according to Ethiopian government sources. The initiative supports the strengthening of Ethiopia’s agricultural value chains and export capacity, officials said.

Approximately 30% of the financing is allocated to businesses involved in climate action and environmentally sustainable practices, according to EIB and Zemen Bank representatives. The agreement includes technical assistance to help Zemen Bank develop climate and environmental risk management systems and comply with European Union standards. This support covers the development of environmental and social management systems and training to meet EU directives and EIB contractual requirements, sources confirmed.

Zemen Bank operates a network of over 140 branches across Ethiopia, enabling broad distribution of the loans, officials said. The financing targets SMEs for at least 80% of the loans, with up to 20% available for mid-cap enterprises. Priority is given to exporting SMEs in the agricultural sector, with private enterprises eligible for senior loans up to an aggregate of €20 million, according to program documentation. Final beneficiaries must comply with applicable national and EU legislation, officials emphasized.

The initiative aligns with the European Union’s “Green Agri Value Chain” program and the “Global Gateway” strategy, which aim to promote sustainable development and strengthen trade links between the EU and partner countries, according to EU sources. The technical assistance component focuses on capacity building to improve Zemen Bank’s distribution channels and operational resilience in agriculture finance, officials said.

The collaboration between Zemen Bank and EIB Global reflects the growing emphasis on gender inclusion, climate resilience, and sustainable economic development in Ethiopia’s agricultural sector, according to development finance experts. The loan facility is expected to enhance the availability of long-term financing options for agribusinesses, supporting their growth and export potential in European markets, officials concluded.