ADDIS ABABA – Commercial Bank of Ethiopia (CBE) announced that it allocated 22.5 Billion Birr and 2 billion USD for the private sector, the highest in years. The move was part of the national effort to stimulate investment and job creations, the bank disclosed.
This was revealed on Monday at Addis Weg platform organized by the Office of the Prime Minister on economic affairs of the country. Speaking at the occasion, CBE President Bacha Gina said the capital allocation was to finance private business projects.
He also vowed to meet the growing financial demand of the private investors. According to the Office of the Prime Minister’s press statement, the government has cut public spending and funneled capital supply to the private sector which exceeded pervious same period by 50 percent.
In a related news, the government revealed macro-economic reforms aiming at encouraging private investment. These include improving investment climates for the private sector.
At the occasion, the Prime Minister’s Advisor Mamo Mihretu also said: “The government has identified unemployment, inflation, foreign currency shortage as major challenges to the growing economy.”
Abebe Abebayehu, Investment Commission Commissioner for his part said that the government as per of pulling more private investment is easing business registration and permit, tax collection system, and other constraints.
To address financial constraint, the government also allowed capital lease financing where business can have access to credit services by using their equipment, including movable asset, for collateral.
The Ethiopian Herald, August 16/2019
BY DESTA GEBREHIWOT
