Ethiopia: How CBE Walks in Promoting Foreign Trade, Investment?
The Commercial Bank of Ethiopia (CBE) has been playing a pivotal role in enhancing foreign trade and flow of domestic and foreign investment in the country apart from providing multifaceted banking services.Taking in to account the Bank's instrumental role in supporting the nation's economic development, the government has been hugely engaged in expanding the Bank's capacity. It also approved this year the increment of its capital up to 40 billion Birr. As country's biggest public Bank with 1,233 branches, CBE's total asset hits close to half a trillion Birr. The CBE has been heavily engaged in financing country's economy and disbursed 14.6 billion Birr loan for development projects and businesses in the first quarter of the 2017/18 fiscal year, Bank's Communications Manager Belihu Takele tells The Ethiopian Herald. The Manager notes that the Bank has put in place a Foreign Currency Earning Strategy aimed at supporting companies engaged in the export sector. In line with government's export incentive regulation, CBE has given priority to provide loan and foreign currency for companies engaged in the agro-processing, manufacturing and infrastructure sectors, Belihu states. "More importantly, our Bank organizes Exporters' Day every year to give recognition for outstanding exporters who have generated a sizable foreign currency and encourage others to follow suit. For instance, last February, we awarded 127 organizations that have generated more than one million USD each in the 2015/16 budget year." The Bank is also striving to make the foreign currency generated from export of commodities to support the country's development and provide various supportive packages for companies interested to engage in the sector, the Manager adds. Sharing Belihu's idea, Economics Associate Professor at Jimma University, Dr. Wondaferahu Mulugeta says CBE has been serving as the primary source of finance for companies engaged in foreign trade. The Associate Professor indicates that the Bank is serving the companies through the provision of demanding foreign currency. Dr. Wondaferahu says: "Backed by government's funding, the Bank has offered a considerable amount of loans to finance foreign trade and facilitate export of goods thereby enhancing country's foreign currency earnings." The economist notes that due to the advanced technology the Bank has been employing, the communication gaps and delays in the foreign trade have also been significantly reduced. Read more on All Africa. Source: All Africa