Economy

Agricultural bank set to begin operations within three months

AI SUMMARY

Ethiopia's planned Agricultural Bank is expected to launch within three months to provide dedicated financing and modernise the agricultural sector.

Ethiopia's planned Agricultural Bank is expected to begin operations within the next three months.
The state-owned bank is being established under the guidance of the National Bank of Ethiopia.
Agriculture contributes about 33 percent of Ethiopia's GDP, but traditional banks provide only around two percent of the estimated 2.5 trillion birr needed annually.
The government plans to mobilise up to one trillion birr under the 10-year National Agricultural Finance Implementation Roadmap.
The new bank will allow borrowers to use assets such as crops, livestock, and property as collateral.
Dairy mechanisation equipment costs between 4 million and 15 million birr, while combine harvesters can cost up to 30 million birr.
Preparations are underway to establish six agricultural mechanisation service centres in high-potential farming areas with African Development Bank support at a total cost of one billion birr.
The six new centres will be located in Bale, Salale, around Bahir Dar, Erikum, and sites in the Afar and Somali regions.
The ministry plans to establish 250 agricultural mechanisation service centres over the next decade, with nine currently operational and six under construction.