01/06/2026
Ethiopia Secures $130 Million EIB Loan for Rural Finance and Development
Feb 3, 2026
The Government of the Federal Democratic Republic of Ethiopia and the European Investment Bank (EIB) have signed a loan agreement worth €110 million (about USD129.8 million) to support the implementation of the Rural Finance and Development Project, the Ministry of Finance announced on February 3, 2026.
The agreement was signed by Ahmed Shide, Minister of Finance, and Diederick Zambon, Head of Division for Public Sector at the European Investment Bank.
The project aims to improve access to finance for micro-enterprises and small businesses, with a particular focus on promoting sustainable agricultural and economic practices across all regions of the country. Under the arrangement, the Development Bank of Ethiopia will channel funds to rural financial institutions, including microfinance institutions and cooperatives, expanding credit access for farmers and rural entrepreneurs.
The EIB loan complements existing co-financing from the International Fund for Agricultural Development (IFAD), which includes a US$35.1 million grant and a US$4.8 million loan. Additional European Union support is also being provided through a €8.5 million (about US$10 million) technical assistance grant and a separate €8.26 million (about US$9.7 million) grant, both implemented by IFAD.
The agreement follows Ethiopia’s earlier engagement with the EIB in October 2025, when the European lender committed US$110 million to support the third phase of the Rural Financial Intermediation Program (RUFIP III). That commitment was announced during high-level meetings held on the sidelines of the World Bank and IMF Annual Meetings in Washington, D.C.
RUFIP III is a flagship programme aimed at expanding financial inclusion and supporting Ethiopia’s agricultural transformation by improving access to credit for farmers and rural communities. The EIB has also been supporting Ethiopia in other priority areas, including small and medium enterprise financing, water and sanitation projects, and women’s entrepreneurship development.
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