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Wegagen Bank has secured an $85 million international trade finance guarantee facility through partnerships with the Eastern and Southern African Trade and Development Bank (TDB) and the African Export-Import Bank (Afreximbank). The facility is expected to enhance the bank’s capacity to support Ethiopian traders by easing access to Letters of Credit and trade-related guarantees.
This strategic arrangement will empower Wegagen to scale up trade finance services for both importers and exporters, particularly small and medium-sized enterprises (SMEs), by reducing the credit risk burden on the bank. Such facilities are part of a broader continental effort by TDB and Afreximbank to bridge Africa’s estimated $100 billion annual trade finance gap.
By sharing risk with local banks like Wegagen, the institutions enable wider participation in regional supply chains and bolster cross-border trade under the African Continental Free Trade Area (AfCFTA). The facility is also expected to support Ethiopia’s broader industrialization and export diversification ambitions.
Founded in 1997 with an initial paid-up capital of 30 million birr, Wegagen has grown into one of Ethiopia’s largest private financial institutions. As of June 2024, the bank reported assets totaling 65.7 billion birr, with 45.1 billion birr in outstanding loans and 52.1 billion birr in deposits. It currently operates nearly 455 branches across the country. Financial results for the 2024/25 fiscal year are yet to be published.
In June, the bank achieved PCI DSS v4.0.1 certification, signaling its compliance with the latest global standards for protecting cardholder data. The certification introduces stronger encryption protocols, tighter access controls, and more rigorous security testing — part of the bank’s ongoing efforts to enhance digital trust and reduce fraud.
The trade finance deal follows a series of milestone moves by Wegagen, including its recent listing on the Ethiopian Securities Exchange and the launch of Wegagen Capital Investment Bank — the first private investment bank in Ethiopia.
