Ethiopia: DBE recommences commercial farm loans

Feb 07, 2017

The commercial farm loans ceased in 2016 due to financial maladministration.

The Development Bank of Ethiopia (DBE) has announced the recommencement of issuing
commercial farm loans after the process was halted on January 27, 2016 due to reports of financial maladministration. According to report published by task forces from different government agencies in Ethiopia, out of the 3.3 billion Br loans advanced by DBE and Commercial Bank of Ethiopia, 16 percent was misused and diverted for other purposes, coupled with poor farm productivity. However, following the recommencement, loan applications from about 260 commercial agriculture investors will be processed and new applications are being received from February 1, 2017. In this new phase, DBE will subject loan candidates to a re-evaluation process to ensure previous mistakes are not repeated. Speaking on this, Hailu Mesganew, Ag. Communications Director of DBE said, "the re-evaluation will ensure that the same mistakes are not repeated, we need to avoid problems related with overlapping of farm lands."