Farmers in Ethiopia's Somali Region Get Banking Boost with Affordable Loans

“Since nearly 80 per cent of the population outside urban areas are pastoralists and farmers, it is essential to provide them with banking services, credit, and financing they need to improve their livelihoods and accelerate their economic activities,” he added.

Roble said the agreement is part of broader government efforts to expand access to financial services and lending institutions. It aligns with the national Financial Inclusion Strategy, a framework that helps banks and financial service providers track the number of pastoralists and farmers benefiting from their services.

“The agreement accelerates efforts to ensure that pastoralist communities across regions and districts can access Islamic banking services, and it will significantly improve livelihoods and raise living standards,” Roble said.

Officials said the initiative forms part of the government’s broader development and poverty-reduction strategy and is expected to strengthen financial inclusion, support small-scale economic activities, and promote rural development.