Technical Assistance Programme to the Development Bank of Ethiopia (DBE)
This overall objective of this technical assistance (TA) was to strengthen the loan screening, analytical and monitoring capabilities of the Development Bank of Ethiopia (DBE). The project had three separate components:
• Organisation and provision of an in-situ Core Training Programme;
• Organisation of an Advanced Bank Training and Certification Programme for selected DBE staff at a recognized bank training institute in the EU or in Africa;
• Consulting services and “on-the-job” mentoring including support to DBE in preparing loan application requests to the EIB Global Loan (GL) Programme, as well as - by extension and on an ad-hoc basis - assistance to SMEs in preparing their loan applications to the DBE.
The TA was provided within the framework of the EIB’s GL Programme. Thus the specific objective of the TA was to enable the DBE to optimally use the GL extended by EIB.
The project aimed to bring the DBE up to international best practices by:
• Strengthening DBE’s operations by transferring best industry practices along the entire transaction cycle of corporate and SME lending (from deal screening to project/credit risk appraisal and to monitoring / credit portfolio management). Special focus was placed on strengthening DBE’s capacity to diversify its portfolio into new sectors;
• Improving lending and appraisal processes as well as decision making tools (including templates) to be consistently used by the DBE;
• Improving DBE’s monitoring of its loan portfolio and risks;
• Strengthening the links between the DBE and its SME client base - abandon the bank’s perception that SME lending bears higher risks than corporate lending, and raise awareness that using the appropriate tools can reduce SME lending risks to a minimum.
Status : Closed
Date : 12-2008 -> 12-2010
Countries : Ethiopia