The Commercial Bank of Ethiopia (CBE) has made available 11.4 billion birr loan for cooperatives’ domestic marketing.
So far, only cooperatives engaged in international marketing were eligible to get access to loan service from the bank.
Usman Surur, director general of Ethiopian Cooperative Agency, the previous system was a great challenge for cooperatives.
However, the new systems will help improve domestic marketing and address financial constraints of cooperatives.
According to him, the cooperatives are obliged to present their financial report and feasible business plan to get a loan from the bank.
In addition to the loan which will be made available by CBE, the Development Bank of Ethiopia (DBE) agreed to provide loan for direct machinery purchases and leasing.
According to data from the Federal Cooperative Agency (FCA), there are 83, 000 cooperatives and more than 380 unions across the country. They have 18 million members and 21 billion birr capital.