The Development Bank of Ethiopia (DBE) has reduced its bad loans from 57 percent to 6.5 percent, following reforms implemented over the past five years. In the most recent Ethiopian fiscal year, the bank extended loans worth Birr 32 billion and recorded a profit of Birr 5.5 billion.
DBE President Yohannes Ayalew emphasized that the reforms improved employee skills, strengthened customer relations, and bolstered the bank’s financial sustainability. As a result, the bank’s capital grew from Birr 2.2 billion birr to Birr 40 billion, making DBE the second-largest financial institution in Ethiopia, after the Commercial Bank of Ethiopia.
Under the new reforms, the bank dramatically increased its lease financing approvals from Birr 900 million before the changes to Birr 27 billion in the last fiscal year. Loans to the manufacturing sector also grew substantially, rising from under Birr 4 billion to Birr 32 billion. Overall, the bank’s loan approvals jumped from Birr 10 billion to Birr 57.8 billion during the same period.
According to the Ethiopian News Agency, DBE collected nearly Birr 16 billion in loans in the last fiscal year. These results underscore the bank’s critical role in supporting Ethiopia’s economic growth by providing essential financing to key industries and businesses.
Source: Fana BC
