Central Bank Activates Loans Against Movable Collateral

Sep 27 , 2020

The country's chief regulatory bank has finally issued the directive that enables banks to take farm products, livestock, financial instruments, intellectual property, and forest and landholding certificates as collateral to approve loans. While approving the loans by taking movable assets as collateral, the financial institutions are required to take a tax identification number, national ID or passport from the borrowers, according to the directive, which became effective as of September 15, 2020. Plastic ear tags provided by the Ministry of Agriculture (MoA) will be used for the identification of livestock. The yellow ear tag includes the species of the livestock, the logo of the MoA, and the regional code number. It should also have a 10-digit unique national identification code that is printed in black on a yellow plate. Financial instruments, including bonds, shares, vouchers and warehouse receipts, can be used as a guarantee after getting registered under the movable collateral registry with their unique serial number. Intellectual property (IP) should also get a unique serial number issued by the Ethiopian Intellectual Property Office. The land use right certificate should also be registered under the movable collateral registry with the type of crop pledged, the expected maximum output, and the maximum production to be guaranteed for a loan out of the total output.


Abyssinia Bank Taps to Digital Loan Solution

The Bank of Abyssinia (BoA) is moving forward to provide banking solutions facilitating microloans. The Bank has hired an Indian-based tech vendor Newgen Software Company, that bagged the international bid on December 22, 2022. Over 10 companies have shown interest in the bid floated by the bank four months ago. The solution provider has committed to completing the project in six months with Yonas Daniel, regional manager for Newgen, and Menbereselassie Gebrekidan, procurement director at Aby...



Bank of Abyssinia rolls out banking services on a truck around Meskel square in the capital. With less than half of Ethiopian adults having access to bank accounts, financial inclusion is a major issue. The central bank revealed in August 2022 that 8,944 commercial bank branches exist in the country. The 30 commercial banks currently in operation offer credit services to less than 400,000 customers charging an average of 17pc interest on asset-backed loans...



Left) Elias Woldu and Mesnbet Shinkute sign a Memorandum of Understanding on behalf of the Ethio-American and Addis Abeba Chamber of Commerce & Sectoral Association, respectively. Some estimates put the number of Ethiopian diaspora living abroad at over two million people, larger than the population of several small nations. Continued economic and political deprivation has forced many to leave the country for better opportunities. While migration to other countries is still high, the number...