The Ethiopian Ministry of Agriculture is planning to revise the existing loan scheme for agricultural inputs, Fortune reported.
The Ministry developed the proposed arrangement in partnership with the Agricultural Transformation Agency.
The draft directive containing the proposed scheme was presented for discussion with stakeholder on October 3, 2013 at Hotel Siyonat.
Among the proposed changes in the draft directive include availing loans through micro-finance institutions instead of farmer's cooperative unions, and providing a credit voucher to farmers in lieu of cash to prevent farmers from using the loan for others purposes other than purchase of agricultural inputs, such as fertilizer and seed.
Some of the proposed changes were on trial during the beginning of the 2013 planting season in over 32 weredas, in the Amhara, Tigray, Oromia and Southern Regions. The Amhara Saving & Credit Institution (ACSI), Oromia Credit & Saving SC (OCSSCO) and the Cooperative Bank of Oromia (CBO) together disbursed 85.8 million Br for 25,468 wheat farmers. Another 649.6 million Br was availed by the OMO Saving & Credit Institution to 480,000 farmers in the Southern Region, according to Fortune.
The draft directive is expected to be implemented throughout the nation in time for the next planting season, Fortune reported citing Seyfu Assefa, senior credit supply expert at the Ministry of Agriculture.
Source: Fortune
