Addis Ababa, May 13, 2024 (FBC) – The Development Bank of Ethiopia (DBE) announced that it has disbursed 30 million birr to the manufacturing industries in the past nine months.
Meanwhile, the Commercial Bank of Ethiopia has also announced that it spent 50 percent of the loans in the manufacturing industry.
This was disclosed at a panel discussion held under the theme ‘Private Investment and enabling Conditions” alongside the Made in Ethiopia Expo taking place at the Millennium Hall, in Addis Ababa.
DBE President, Yohanes Ayalew on the occasion said the bank is helping players in the sector by providing low interest loan with special attention given to the manufacturing industry.
Recalling that the bank was in heavy losses in the past, the president pointed out that the government had resolved the problem by taking bold actions.
The president mentioned that the bank is currently making a profit of 6.3 billion Birr annually.
The bank’s capital has now reached 38 billion Birr and can lend up to 9 billion Birr for one project, he assured.
Noting that the bank approved 44 billion Birr loan in the past nine months, the president explained that 30 billion of it was given to the manufacturing sector.
According to him, disbursing this amount of loan is an indication of economic growth and that the bank has improved its overall capacity and services.
The president has further reassured the bank’s commitment towards closely supporting the manufacturing sector.
Commercial Bank of Ethiopia President, Abe Sano on his part said his bank is significantly supporting the productive manufacturing industries.
The bank has given 50 percent or 550 billion Birr of the total capital allocated for loans to this industries. From this, 90.6 percent of the loans are long-term loans.
A procedure is being prepared in which the industries that use local raw materials will be the first beneficiaries, ENA reported, citing the CBE chief.
The bank is supporting the sector in a big way and that problems are being investigated and improvements are being made, Abe added.