Loan Cap Impairs 3G Banks Squeezing Expansion
Established in 2019, East Africa Plastic Centre operates at a 30pc capacity due to a lack of working capital. Its managers' application for a loan of 100 million Br submitted five months ago remains unapproved by all the banks they approached.
Dereje Weldeamanuel, the general manager, attributed the dry spell to a loan cap.
"We're in survival mode," he said.
Partly, his company is a victim of a little-heeded shift in monetary policymaking. A consequential reorientation of the central bank's goal, which focuses on inflation targeting and price stability, has Governor Mamo Mehiretu impo...