The Government of Ethiopia is set to introduce bank directive that will allow smallholder farmers to use their cattle as collateral to access loan from banks. The practice of banks in Ethiopia so far shows that one has to have fixed asset such as, building or villa to use as collateral in order to access loan from banks. The state agencies included in the committee also include the federal investment commission, customs commission, ministries of revenue, finance, trade and industry. Access to finance has been mentioned by many studies as one of the major obstacles for startups. In both rural and urban areas, many young people, particularly young women, are unemployed or working in the informal sector.

Source: News Business Ethiopia February 27, 2019 08:47 UTC