The European Investment Bank’s development arm, EIB Global, has signed a technical assistance agreement with Zemen Bank to enhance the bank’s capacity in identifying, assessing, and managing climate-related risks. The partnership aims to integrate climate considerations into Zemen Bank’s business strategies and operations, helping the bank support Ethiopian enterprises facing environmental challenges like floods and droughts.

This collaboration will also enable Zemen Bank to develop sustainable financing and advisory strategies to expand green lending. The initiative supports Ethiopia’s goal of achieving a sustainable, net-zero economy by 2050, as outlined in the country’s Long-Term Low Emission Development Strategy.

The agreement was announced during the Africa Climate Summit held in Addis Ababa, marking the first operation of its kind in Ethiopia under the European Investment Bank’s Greening Financial Systems Programme. This programme, funded by the German government through the International Climate Initiative (IKI Fund), aims to strengthen financial institutions’ ability to boost climate resilience and green investments.

Leyla Traoré, EIB Head of Representation to Ethiopia & the African Union, emphasized the importance of financial institutions in directing funds toward zero-carbon, climate-resilient projects. Dereje Zebene, CEO of Zemen Bank, noted that the technical assistance agreement will help the bank align its financing with climate resilience goals and comply with national sustainability regulations, including new Corporate Governance directives.

Zemen Bank, a private commercial bank operating since 2008, has more than 130 branches and over 1,900 employees throughout Ethiopia. The partnership with EIB Global represents a critical step for the bank to diversify its portfolio to include green finance products and contribute to Ethiopia’s sustainable development objectives.