Development Bank of Ethiopia (DBE) called off its low interest rate loan. The loan scheme was given for exporters and investors engaged in import substitution. Even if most banks in Ethiopia give loans at a rate of 12 percent, DBE’s low interest rate loan was served with 9 and 8 percent. 

Isais Bahire, President of DBE, explained foreign exchange generated over the past five years declined even if the government gives incentives. 

According to Fana Broadcasting Corporate, Ethiopia managed to earn 4 billion USD during 2010/2011 fiscal year from export trade. Nonetheless, the nation’s revenue has declined ever since. In 2013/2014 fiscal year the country’s export trade earned it 3.25 billion USD and 3 billion USD in the following.

The current fiscal year’s first 6 months performance shows the country secured 1.3 billion USD.

In the aim of compensating lost income following the decline of agricultural products price in the international market, the government is providing different incentives to the manufacturing sector. Yet, beneficiaries of the incentives failed to live up to their commitment.

Unless the beneficiaries are proved successful and capable to save foreign currency, they will not be given loans with an interest rate of 9 and 8 percent, but with an interest rate of 12 per cent, Isaias noted.

Source: Fana Broadcasting Corporate