Addis Ababa — The European Investment Bank's development arm, EIB Global, has signed technical assistance agreements with Zemen Bank, Dashen Bank and Hibret Bank to strengthen their capacity in managing climate risks and expanding green lending in Ethiopia.

The deal, announced on the sidelines of the Africa Climate Summit in Addis Ababa, is the first of its kind in the country and part of the Greening Financial Systems Program, financed by Germany's International Climate Initiative (IKI).

"Financial institutions play a critical role in addressing climate-related risks and directing financial flows to zero-carbon and climate-resilient projects," said Leyla Traoré, EIB Head of Representation to Ethiopia and the African Union, in a statement shared with Addis Standard.

Germany's State Secretary Jochen Flasbarth added: "Transforming the global financial system and aligning financial flows with the goals of the Paris Agreement is critical to meeting the challenges of the 21st century."

The three Ethiopian banks welcomed the partnership as a step toward integrating climate risk and Environmental, Social and Governance (ESG) principles into their strategies.

The agreements follow a recent MoU between EIB Global and the National Bank of Ethiopia to develop a national green taxonomy. Similar EIB partnerships are already underway in Kenya and Rwanda, with talks ongoing in Nigeria, Morocco, Egypt, Uganda, and West Africa.