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Ethiopia: DBE Ordered to Amend Loan Policy

Investment Board, presided by the Prime Minister, ordered Development Bank of Ethiopia (DBE) to modify its lending policy in favor of foreign horticulture investors. From now on the bank, as per the board’s decision, will exempt foreign horticulture investors from the 50 percent deposit requirement other foreign investors have to fulfill.

It was a year ago that DBE amended its 70/30 requirement which was applicable to all borrowers. The then amendment introduced 2 schemes; 50/50 for foreigners and 75/25 for local investors.

The new decision by the investment board exempts foreign investors from depositing 50 percent and reduces the amount to 25 percent of the funding.

The horticulture sector has been creating job opportunities for a lot of people in Ethiopia. For example Afriflora, which owns a flower farm in Ziway Town – Oromia State – employs around 5000 workers.

The sector has also been growing very fast. In the last fiscal year alone, it generated 274 million USD.

Source: The Reporter