The African Export-Import Bank (Afreximbank) views Ethiopia as a critical engine for continental growth, underscoring its strategic market importance based on recent economic improvements and policy shifts, according to Compliance Director Idrissa Diop.
Diop elaborated on the bank's perspective. "At Afreximbank, we believe that Ethiopia is a very strategic market and an important country for the growth of the continent," he stated. He referenced the nation's impressive historical GDP growth, which surpassed 9 percent in the early 2000s, while acknowledging the slowdown experienced during the global COVID-19 pandemic.
Diop credited recent regulatory reforms initiated by Ethiopian authorities, particularly the National Bank of Ethiopia, with significantly improving the country's economic outlook and attractiveness to foreign investors. "The fact of seeing the GDP going up also is enticed positively by the recent policy... which has liberated the rate of the Birr against the other currency in order to attract foreign investment," Diop explained. He believes these changes are paving the way for greater openness. "I think regulations are going to make Ethiopia open (to foreign investors) and become more attractive to investment."
This evolving landscape reinforces Afreximbank's commitment to the Ethiopian market. "We then think that it is important for us, Afreximbank, to be in this market," Diop affirmed, noting that the bank has been an active partner for local businesses and financial institutions even prior to these recent shifts.
Underscoring this commitment, Afreximbank is actively deploying resources and financial products to foster Ethiopia's development. The bank aims to strengthen the country's regional leadership by partnering with local banks and corporations. Diop mentioned a recent workshop involving over 20 Ethiopian banks, designed to familiarize them with Afreximbank's offerings. "We offer solutions like the Afreximbank payment system, which facilitates cross-border payments, and products like trade financing and credit facilities for large-scale corporates," he detailed.
According to ENA, looking forward, Afreximbank intends to deepen its role as a key development partner. "We believe that Afreximbank will play an active role in Ethiopia to improve its economic growth and position the bank as a co-partner for the country," Diop concluded, emphasizing the bank's readiness to contribute significantly to Ethiopia's ongoing economic advancement.