21/12/2022
Central bank regulators are working on a digital lending framework that will likely see micro-credit providers gain a step up in the financial sector. As it stands, mobile money providers are the only non-traditional financial institutions allowed to engage in micro-credit service but are still required to partner with banks or MFIs to access loanable funds.
The central bank, however, has recently expressed intentions to allow fintechs to loan out funds sourced from entities other than banks or MFIs.
The last few years have witnessed the rise of a seminal phenomenon in the Ethiopian financial sector that goes back more than a century – digital lending. Although digital credit has immense potential in serving the underfinanced Ethiopian population, there is no lack of impediments holding that p...
