Development Bank Of Ethiopia (DBE)

The Development Bank of Ethiopia (DBE) has a rich history dating back to its origins in 1909, when it was first established as The Societe Nationale d’Ethiopie Pour le Development de l’Agriculture et de Commerce (The Society for the Promotion of Agriculture and Trade) during the reign of Emperor Menelik II. Over the years, the bank has undergone several name changes while maintaining its core mission to support economic development through project-based lending.

In 1945, it became the Agricultural Bank of Ethiopia, later evolving into the Agricultural and Commercial Bank of Ethiopia in 1949. By 1951, it became the Development Bank of Ethiopia Share Company, before transitioning to the Investment Bank of Ethiopia in 1964. In 1970, it was rebranded as the Agricultural and Industrial Development Bank Share Company, and eventually became the Agricultural and Industrial Development Bank in 1979. In 1994, it returned to its current name, the Development Bank of Ethiopia.

Throughout its history, DBE has played a pivotal role in financing key development projects across various sectors, contributing to Ethiopia's overall economic growth and progress.

Mission:

The Development Bank of Ethiopia is a specialized financial institution established to promote the national development agenda through development finance and close technical support to viable projects from the priority areas of the government by mobilizing fund from domestic and foreign sources while ensuring its sustainability. The Bank earnestly believes that these highly valued objectives can best be served through continuous capacity building, customer focus and concern to the wider environment.

Vision:

To be a world-class development bank that help to achieve Ethiopia’s Economic transformation vision by 2030

Core Values:

Core value of Development Bank is

• Commitment to mission
• Customer focus
• Integrity
• Team work
• High value to employees
• Concern to the environment

DBE has the following product and services

Credit Services

1. Project Financing
2. Lease financing
3. Idea Financing
4. Interest Free Financing (DBE TA`AWUN)

International Banking

1. Export Guarantee
2. International Banking

Other Services

1. External Fund & Credit Management
2. Bond Issue & Sale

Lease financing

The Development Bank of Ethiopia (DBE) offers lease financing for small and medium enterprises (SMEs) under a "hire-purchase" model. Key points include:

1. Eligibility: Ethiopian citizens or foreign nationals residing in Ethiopia, with capital between Birr 500,000 and Birr 9 million.
2. Application: Submit a hard copy request with the lease amount and capital goods type.
3. Financing: Covers all costs until commissioning, excluding used goods; associated costs must not exceed 15%.
4. Types: New leases, expansion requests, and lease buyouts.
5. Sectors: Available for agriculture, manufacturing, construction, and more.

For more details, visit the DBE Lease Financing page.

Project financing

The Development Bank of Ethiopia (DBE) provides project financing with the following key features:

1. Loan Types:
2. Long Term: Up to 20 years.
3. Medium Term: 3 to 5 years.
4. Working Capital: Included in long and medium-term loans, with short-term needs handled by commercial banks.
5. Focus Areas: Prioritizes sectors like commercial agriculture, agro-processing, manufacturing, and mining.
6. Eligibility: Loans are for creditworthy borrowers with projects that are financially viable and socially beneficial.

For more details, visit the DBE Project Financing page.

Idea Financing

The Development Bank of Ethiopia (DBE) offers Idea Financing to support innovative start-ups facing financing challenges. Here are the key points:

Key Features of Idea Financing

1. Purpose: To provide tailored financing solutions for innovative start-ups, helping bridge the financing gap and foster entrepreneurship.
2. Eligibility Criteria:
3. Intellectual Property: Preference for start-ups with IP certificates; support available for early-stage start-ups without IP, provided they receive training from the Ministry of Labor and Skills.
4. Citizenship: The innovator must be an Ethiopian citizen or a foreign national of Ethiopian origin.
5. Innovation: The business idea must be unique and innovative.
6. Implementation: Must be executed in Ethiopia.
7. Age: The start-up should be no more than five years old.
8. Ownership: Innovators must agree to share ownership with DBE.
9. Documentation: A business start-up label certificate and a comprehensive business plan are required.
10. Support: The program includes assistance in refining business models and developing pitching skills.

For more details, visit the DBE Idea Financing page.

Interest Free FInancing (DBE TA'AWUN)

The Development Bank of Ethiopia (DBE) provides Interest-Free Financing through its DBE TA’AWUN service, which adheres to Sharia principles. Here are the key features:

Key Features of Interest-Free Financing

1. Sharia-Compliant Solutions: Offers financing products designed for priority sectors identified by the Ethiopian government, such as agriculture, agro-processing, and manufacturing.
2. Financing Products:
3. Murabaha Financing: Supports projects in priority sectors, providing ethical funding.
4. Ijarah Financing: Available for small and medium enterprises with capital ranging from Birr 500,000 to 10 million.
5. Sukuk Certificates: DBE offers Sharia-compliant investment opportunities through Sukuk, available to local and foreign institutional investors.
6. Accessibility: The service aims to provide inclusive financial solutions that align with customers' religious beliefs.

For more details, visit the DBE IFB page.

Priority Areas of the Development Bank of Ethiopia

• Agriculture

The bank finances projects focused on mechanized commercial agriculture, including irrigated farming, modern livestock breeding farms, and commercial poultry farming.

• Manufacturing

DBE supports manufacturing industries involved in processing raw materials into semi-finished or finished goods, contributing to industrial growth.

• Mining

The bank funds mining and extractive industries engaged in the extraction of minerals, metals, and other valuable raw materials, fostering economic development.