A Memorandum of Understanding on input sales system implementation was signed between Agricultural Transformation Agency (ATA) and Commercial Bank of Ethiopia, Ministry of Agriculture, Amhara Credit and Saving Institution, Amhara Cooperative Promotion Agency and Amhara Agriculture Bureau.

Nega Wubneh, ATA Senior Program Director, explained that the focus of Rural Financial Service (RFS) is strengthening the input sales system by increasing access to credit.

The paper coupon system is being revised, and it will be extended to over 300 – 400 thousand farmers in four states; Amhara, Oromia, Tigray and Southern Nations, Nationalities and Peoples, Nega added.

The coupon system extension is expected to reach over to two Million farmers across the country in 2015.

Nega said, the financial system programme is targeted, but not limited to, filling the breach in the supply of money to small holder farmers, raising aggregate savings and as well increase credit access to rural households.

He further said improving the access to credit will enable rural household to get agricultural inputs such as selected seeds, fertilizers and chemicals.

Another advantage of the system is that it will boost agricultural productivity in a sustainable way by making agriculture related investments accessible, according to the Ethiopian Herald.

The signing will help to create modern rural financial system, said Mekonnen Yelewemwessen, Managing Director of Amhara Credit and Saving Institution.

Source: The Ethiopian Herald