After almost a year, the Development Bank of Ethiopia (DBE) has resumed issuing loans for commercial agriculture investment. It will start to receive loan applications from February 1, 2017. The loan scheme for commercial farms was suspended nationwide after a controversy involving financial maladministration in the Gambella Region.
The Bank announced that both long and short-term loans will be provided to sectors including agro-processing, mineral and commercial farms. Commercial farm investments experienced some turbulence following the release of a report compiled by a task force from different agencies. The report revealed that out of a total 3.3 billion Br in loans advanced by Commercial Bank of Ethiopia and DBE to private investments, 16pc was misused and diverted towards unintended purposes.
However, the findings in the report caused frustration among the investors.
Following the release of the report the Bank officials had been in discussion with the investors, officials from Gambella region and federal government officials.
In a letter, on January 26, 2017 the Bank announced that it has decided to lift the restriction of loans for commercial farms.
[Addis Fortune]