U.S. Government Partners with Private Ethiopian Banks to Increase Access to Credit in Agriculture and Health Sectors

The agriculture sector loan agreement with the Bank of Abyssinia and Zemen Bank makes it possible for small holder farmers and farming cooperatives to purchase agricultural equipment and machinery—such as tractors, harvesters or irrigation systems—through lease financing arranged with the banks.

The agreement, worth approximately $7.3 million dollars in potential loans, reduces collateral requirements by 50 percent and encourages partnerships between agricultural equipment suppliers and private commercial banks. The program will benefit farmers and cooperatives operating in the 83 woredas targeted for value chain expansion under Ethiopia’s Agricultural Growth Program and the U.S. Feed the Future initiative.