New year, new initiatives: Strengthening ESG in Ethiopia’s financial sector

DSIK is launching a new project in Ethiopia in 2026: Together with Abay Bank, the aim is to strengthen the implementation of ESG principles in the country's financial sector. An inception workshop marked the start of the collaboration, during which management teams developed initial steps for analysing, defining objectives and planning transformation measures.

Yehuala Gessesse, CEO of Abay Bank and Oliver Schuster, Head of Team Africa at DSIK, jointly present the signed Memorandum of Understanding on promoting sustainable finance in Ethiopia.

The German Sparkassenstiftung for International Cooperation (DSIK) is starting 2026 with a new project in Ethiopia. A memorandum of understanding has been signed with Ethiopia’s Abay Bank. Together, they plan to introduce ESG (environmental, social and governance) principles in the country's financial sector in the future.

The partnership agreement was signed by Yehuala Gessesse, CEO of Abay Bank, and Oliver Schuster, team leader and project manager for Team Africa at DSIK. The agreement forms the basis for cooperation that will translate ESG principles into concrete measures for banks and local communities. Training, consulting and support services are planned to improve access to financial services and strengthen rural regions.

Start of collaboration: The Inception Workshop

Country Director Antje Kinder (DSIK) with participants from the partner bank at the inception workshop in Addis Ababa.

A key first step in the new partnership was the inception workshop which was attended by members of the local partner's management team. The aim of the event was to introduce the basics of ESG principles and the Sustainable Finance Compass, a tool developed by DSIK for the systematic management and implementation of ESG measures. Abay Bank will use this tool to first analyse which ESG measures have already been implemented, then define clear goals based on this analysis and develop a transformation plan.

Sustainable and resilient financial systems are considered a key foundation for economic participation, social stability and long-term development. This enables financial institutions to contribute strong local engagement and a sense of responsibility for the development of communities. Through training and advisory services, DSIK supports its partners in acting as a driving force for inclusive growth and stability processes, especially in the face of social, economic and climate-related challenges.