The Financial Sector Showing Healthy Growth, Says PM Abiy

Addis Ababa March 28/2023 (ENA)  The performance of the financial sector in Ethiopia has been showing positive growth over the past six months, Prime Minister Abiy Ahmed stated.

Presenting his government six month performance report to the House of Peoples’ Representative today, the premier stated that the total loans provided by banks over the past six months has reached 172 billion Birr.

The banks have also collected a total of 311 billion Birr during the stated period showing a 100 percent growth compared to same period last year, he said. 

According to him, 90 percent of the total loan was extended to the private sector in the country which is very important as it expedites the ongoing development efforts of the nation. 

The agricultural sector projects have received some 92 billion Birr loan during the stated period which shows a 29 percent increment compared to the same period last year, the PM added. 

The loan provided to the agriculture sector is very encouraging though it has to be further strengthened in the future, he stressed. 

Abiy also said that the financial sector has provided 39 billion Birr loans to Small and medium enterprises which is 36 percent bigger than the previous year same period.  

The financial support provided to the small and medium enterprises will pave ways to creating more jobs to the citizens, the PM added. 

The overall situation of financial sector in Ethiopia is health and showing encouraging growth. However, more caution is required for the financial sector as the sector at the global level has suddenly been showing failure, the Prime Minister pointed out.

However, the premier stressed the need to take more cautions on the overall situation of the financial sector by taking lesson from the failure of western banks. 

In this regard, he urged the National Bank of Ethiopia and Finance Ministry to properly carry out their oversight activities as the health banks play key role in the national economy of the country.