CDB provides $30 million loan to Development Bank of Ethiopia for on-lending to SMEs (Linked to Record ID#59661)

📋 Staff Comments

1. The proceeds of this loan were mostly likely on-lend by the Development Bank of Ethiopia to SMEs.
2. For loan and debt rescheduling records with variable interest rates, AidData calculates the all-in interest rate at T0 based on the reference rate (such as LIBOR or EURIBOR) on the loan start date, plus any known margin. Please see the methodology for additional details.
3. This $30 million CDB loan to DBE was not included in the database of Chinese loan commitments that SAIS-CARI released in 2020 and re-released in 2021. Nor was it included in the China's Overseas Development Finance Database or Chinese Loans to Africa (CLA) Database maintained by Boston University's Global Development Policy Center (as of August 2024).
4. CDB issued a separate, $25 million loan to DBE in 2013 that is captured via Record ID#59661.
5. The loan identification number in the Government of Ethiopia’s Debt Management and Financial Analysis System (DMFAS) for the $30 million CDB loan is 20935000 and the corresponding project name in DMFAS is ‘SPECIAL FACILITY AGREMENT-SMEs’. See https://www.dropbox.com/scl/fi/7nrczfanixvivmiyzqx3i/MOFED-Loan-Level-Data-on-Borrowing-Terms-and-Loan-Performance-September-2024_OTHER_PUBLIC.xlsx?rlkey=5sqhh9ii4t3x8cmz0jf6s7cod&dl=0.
6. As of September 2024, the Government of Ethiopia recorded the loan's all-in interest rate as 8.25% in DMFAS. See https://www.dropbox.com/scl/fi/7nrczfanixvivmiyzqx3i/MOFED-Loan-Level-Data-on-Borrowing-Terms-and-Loan-Performance-September-2024_OTHER_PUBLIC.xlsx?rlkey=5sqhh9ii4t3x8cmz0jf6s7cod&dl=0.”

📚 Sources & References

• Public Sector Debt Statistical Bulletin 1 - 22
• Development Bank of Ethiopia (DBE) and China Development Bank Corporation (CDB) sign a loan agreement to finance SMEs in Ethiopia
• Rising Powers and South-South Cooperation
• Public Sector Debt Statistical Bulletin No. 11
• Public Sector Debt Statistical Bulletin No. 10
• 国家开发银行与埃塞开发银行签署2500万美元中小企业发展专项贷款协议
• DBE AUDITOR’S REPORT AND FINANCIAL STATEMENTS 30 JUNE 2022
• DBE Annual Report 2018
• Delevopment Bank of Ethiopia Annual Report 2020-21
• Perspectives on Development Banks in Africa
• DEVELOPMENT BANK OF ETHIOPIA INDEPENDENT AUDITOR'S REPORT AND FINANCIAL STATEMENTS 30 JUNE 2023
• Development Bank of Ethiopia Annual Report For the Year Ended June 30, 2013
• Development Bank of Ethiopia Annual Report For The Year Ended June 30, 2014
• Annual Report For the Year Ended June 30, 2015
• Development Bank of Ethiopia Annual Report For the Year Ended June 30, 2016
• Development Bank of Ethiopia Annual report for the year ended June 30, 2017
• DBE Independent Auditor's Report and Financial Statements 30 June 2020
• ChinaLoansToAfrica©SAIS-CARI.csv
• MOFED Loan-Level Data on Borrowing Terms and Loan Performance September 2024_PUBLIC
• List of Ethiopia- China Cooperation Major Projects from Ethiopia's Ministry of Finance September 2024 Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.