The Oromia Cooperative Promotion Agency (OCPA) and the state financial giant, Commercial Bank of Ethiopia (CBE) agree to work in tandem with regards to technology based loan repayment.
The agency which provides agricultural inputs for farmers in Oromia region has had a longstanding partnership with CBE for the last 28 years in terms of financial access for the procurement of inputs.
Similarly, the regional body has been providing inputs for farmers on credit bases, through a traditional recollection system in partnership with local bodies and cooperatives; however a much needed change was noted as paramount.
Meseret Assefa, Director General of the Agency, said that the loan collection scheme was risky, costly, consumes time and was vulnerable to theft or embezzlement. As a result, the OCPA developed a digital scheme where farmers are able to pay their dues through a cashless scheme.
Abie Sano, President of CBE said that farmers shall use CBE’s digital payment scheme to settle their payment in connection with the service they get from the agency.
He said that the scheme will allow for a smooth and fair distribution of inputs, as well as ease the agency’s operation besides timely settlement of arrears.
CBE has provided up to 35 billion birr in loans for the agency to acquire relevant agricultural inputs.