Prime Minister Abiy Ahmed said his government is taking various measures to ease the process of getting into business in Ethiopia.
Chairing a national steering committee in charge of introducing a new reform to improve public credit supply system in Ethiopia, Abiy announced the government’s desire to increase revenue and the time required to bring the able-bodied to work is paradoxical.
He said the existing credit supply system has been hampering citizens from starting business.
“The redtape and lack of access to finance have been identified as major hurdles in this regard,” he added.
Abiy stated that reforms on service delivery systems and legal frameworks that inhibit ease of business will be carried out.
He said Necessary measures will be taken to correct problems not identified by the government but discovered by the steering committee.
Collateral is required to get credit in Ethiopia, the prime minister said, adding that this practice has prevented creative persons with innovations and knowledge from accessing loans.
Thus, reform is underway to improve access to supply of public finance and loan, he revealed.
This will enable young farmers and pastoralists to access loan easily, Abiy noted.
The prime minister stressed that public institutions should not limit themselves to identifying problems but bring about concrete change.