Wegagen Bank Partners IFC to Boost its Trade Financing

Wegagen Bank and the International Finance Corporation IFC, a member of the World Bank Group, have signed a strategic partnership for a trade finance guarantee facility. This agreement builds on IFC’s ongoing advisory services to Wegagen Bank, focusing on strengthening risk management, trade service functions, and treasury operations. Wegagen Bank’s CEO Aklilu Wubet PhD stated this partnership is a significant milestone, enhancing the bank’s ability to serve customers. IFC will provide a USD 10 Million trade finance guarantee facility, enabling Wegagen Bank to expand its trade finance operations for Ethiopian businesses involved in import and export. This makes Wegagen Bank a participant in IFC’s Global Trade Finance Program GTFP, which promotes trade in emerging markets by mitigating payment risks. Madalo Minofu, IFC’s Country Manager, noted that joining the GTFP will better position Wegagen Bank to help local firms access essential inputs, meet demand, and connect to regional and global markets. The collaboration also includes advisory support to strengthen the bank’s risk management and treasury functions. Wegagen Bank, celebrating its 29th anniversary in June, is the first private commercial bank listed on the Ethiopian Capital Market, operating 463 branches and expanding digital banking services.