Gambella, February 01, 2017 (GCDC) - Development Bank of Ethiopia (DBE) has announced it will resume extending loan for rain fed commercial farming. The bank is going to restart the program starting from February 1, 2017.
It was almost a year ago in March that DBE halted the entire loan scheme for scandals that were discovered regarding loans extended for investors engaged in the agriculture sector.
According to Capital, all experts working at the DBE are getting an extensive training.
The latest study conducted by the Prime Minister Office, showed that loans were being given for up to 3 investors on similar plots of land in Gambella State. From the entire expected investments in the State, only 18 percent has been developed. This is despite 2 billion Birr loan has been released for 194 investors.
According to the study, the weak results in Gambella State’s agriculture investment, is attributable to lack of appropriate follow up the investment in land and mistakes by employees along with unprincipled estimates of the cost of land development.
The study further stipulated that only 2 percent of the investors in Gamblella were included in the loan scheme.
Source: Capital