Wegagen Bank has signed a strategic partnership with the International Finance Corporation (IFC), securing a $10 million trade finance guarantee to expand its support for Ethiopian importers and exporters.
The agreement, signed by Wegagen CEO Aklilu Wubet (PhD) and IFC Country Manager for Ethiopia, Malawi and Zambia Madalo Minofu, makes Wegagen a participant in IFC’s Global Trade Finance Program (GTFP). The facility mitigates payment risks in cross-border transactions, helping local businesses access essential inputs and connect to regional and global markets.
The deal builds on IFC’s ongoing advisory work with Wegagen, which has focused on strengthening risk management, trade services and treasury operations. Bank executives said the partnership marks a key step toward enhancing financial inclusion and supporting private-sector growth.
“This strategic partnership agreement with IFC represents a significant milestone for the Bank and will enhance its ability to better serve customers,” Aklilu said. “Wegagen Bank is committed to building on the collaboration with IFC into other areas to enhance financial inclusion and foster economic development in Ethiopia.”
IFC’s Minofu emphasized the gap in trade finance for Ethiopian firms, particularly small and medium-sized enterprises. “This partnership reflects IFC’s commitment to expanding access to trade finance in Ethiopia, where many businesses continue to face constraints in financing their cross-border trade,” she said.
“By joining IFC’s Global Trade Finance Program, Wegagen Bank will be better positioned to help local firms access essential inputs, meet demand, and connect to regional and global markets.”
Wegagen, which will celebrate its 29th anniversary in June, became the first private commercial bank listed on the Ethiopian Capital Market. The bank has prioritized digital financial inclusion through its Efoyta platform, offering uncollateralized loans targeting women, informal businesses and micro, small and medium enterprises.
With 463 branches nationwide, Wegagen provides both conventional and interest-free banking services. The bank continues to invest in digital channels, including internet, mobile, agent and card banking, to improve service accessibility for customers across Ethiopia.
