State-owned Bank Partners with Private Financial Tech for Digital Lending

Jul 8 , 2023


In a bid to address Micro, Small and Medium Enterprises (MSMEs), a pioneering firm in financial technologies, Chapa Financial Technologies is vying to partner with the Commercial Bank of Ethiopia (CBE) to provide non-collateral loans through a digital lending platform. The company also partnered with Telegram a couple of months ago to facilitate digital payments for online marketers. It comes a month after the central bank joined hands with financial technologies to design and execute a regulatory framework for moveable collateral and non-collateral loans. Nael Hailemariam, CEO of Chapa, indicated the absence of digital and credit infrastructure and limited data as the primary reason for financial institutions' reluctance to finance enterprises. "The company hopes to bridge the gap through the partnership," he said. More than 60pc of Enterprises did not have access to finance in the past few decades through stiffer credit terms in the form of higher interest rates, according to Nael. Last week, the Addis Chamber of Commerce & Sectoral Association (ACCSA), prepared a discussion forum, at Interluxury Hotel, for business owners and financial technologies to discuss the trends and impacts of digital solutions for businesses in Ethiopia. Zerkarias Assefa, director general of ACCSA, who moderated the discussion, said that businesses have fallen short of being data-driven entities, indicating that persistence, execution, and the drive to employ digital business models moving at a slow pace. Nael, on the other hand, highlighted the importance of digital literacy, and making technologies user interface to reach out to businesses. Some participants cited the necessity of strong IT infrastructure, regulatory measures, and adequate end-to-end encryption in platforms. Digitally transacted economic activities in the country accounted for 10 billion Br in 2022, compassing 10pc of the country's GDP. In 2025, the number is estimated to grow by 39pc accounting for 60 billion transactions.


Radar

DREARY LANES

A street lamp around Addis Abeba Stadium melds into the concrete backdrop emblematic of the capital's ageing infrastructure. Over the past few years, Ethiopia's electric grid has been subject to destruction and theft, subjecting the public treasury to hundreds of millions in losses. Nearly half of the country's population does not have access to electricity. A series of projects by the World Bank has contributed to the slight but essential upgrade to the nation's grid, including a 500 million do...


Radar

PLUMPY HUMPS

A trio of donkeys drag along the main road in front of Menlik School around the Arat Kilo area. While the four-legged domestic animal is a venerated member of the Ethiopian labour force, its skin and meat are increasingly valued in the international markets. Rhong Chang, a donkey slaughterhouse operating in Assela Town, Oromia Regional State reopened its services after a seven-year break two years ago. Public outroar has often accompanied the entrance of donkey abattoirs into Ethiopia since anot...


Radar

IMPROMPTU AISLES

A bustling market emerges under a bridge in the boroughs of the Bole Michael area. Addis Abeba City Administration has launched a series of aesthetic initiatives embalmed in themes of beautification and urbanisation that have removed thousands of shops built with makeshift tents. Above a quarter of Addis Abeba's labour force is engaged in the informal economy, which while often associated with connotations of illegality, remains a sizeable employer in emerging economies across the world. Calibra...


Back
WhatsApp
Telegram
Email