Despite the increase in the number of banks, microfinance, and their branches over the last 25 years, the majority of Ethiopians mainly the very poor and those engaged in micro and small businesses still do not have access to credit, a new report says.A preliminary report by Precise Consult, a private consulting company in Ethiopia, presented at business reporters training in the capital Addis Ababa shows that lending of the banks is limited to the rich and state-owned companies.“Despite their profound economic impact, micro and small enterprises face a variety of hurdles. Access to finance to this sector is a huge challenge,” the preliminary report noted.As a result, the majority of Ethiopians including those tens of million engaged in agriculture are not accessing loans from the banks to expand their business or improve their productivity.

Source: Further Africa