Ethiopian Private Banks Neglect Agriculture

Agriculture sector, which contributes 43 percent to Ethiopia’s GDP, gets smaller quantity of loans from Ethiopian private banks over last year, a new report reveals.
‘Banking Sector Review 2010’, which is prepared by Access Capital S.C and released today indicated that all the private banks focused on four major areas of investment neglecting agriculture.

“For the private banking industry as a whole, the top four sectors to which loans are provided are Domestic Trade and Services (29 percent of total loans), Exports (15.3 percent), Manufacturing (15 percent) and Construction (15 percent),” states the report, which reviewed 12 private last year’s (2009/10 fiscal year) performance.

According to the report, only NIB International Bank gave the greatest share of total loans at (6 percent of loans) to agriculture while the rest provided from 0.2 percent up to 5 percent of their total loan to the sector.
Read More

Source Access capital S.C.