East Africa: Ethiopia, European Investment Bank Sign 110 Million Euro Loan

3 February 2026
Ethiopian News Agency (Addis Ababa)

Addis Ababa — The Government of the Ethiopia and the European Investment Bank (EIB) have signed a 110-million Euro loan agreement to support the implementation of the Rural Finance and Development Project.

The project aims to improve access to finance for micro-enterprises and small businesses to promote sustainable agricultural and economic practices across all regions.

Accordingly, the Development Bank of Ethiopia will channel funds to Rural Financial Institutions, including microfinance institutions and cooperatives, it was learned.

The project's financing is further complemented by ongoing co-financing from the International Fund for Agricultural Development (IFAD), including a grant of 35.1 million USD and a loan of 4.8 million USD, as well as additional European Union (EU) support, comprising a Technical Assistance Grant of 8.5 million euros and a separate grant of 8.26 million euros, implemented by IFAD.

According to Ministry of Finance, the signing of this landmark support shows a significant strengthening of the longstanding partnership between Ethiopia and the European Investment Bank (EIB).

The agreement was signed by Finance Minister Ahmed Shide and Diederick Zambon, European Investment Bank Public Sector Division Head.

Read the original article on ENA.

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