Ethiopia, 13 January 2026 The Somali Regional State and the Commercial Bank of Ethiopia (CBE) have signed a landmark agreement to provide affordable loans to farmers and agro-pastoralists, marking a significant shift toward formalized agricultural financing in the region.
The deal, finalized during a ceremony in the regional capital of Jigjiga on Monday, establishes a framework for rural producers to access credit facilities intended to modernize crop production and livestock management.
Officials stated that the move is designed to unlock the economic potential of a population that has historically struggled with a lack of access to investment capital.
The Vice President of the Somali Regional State, Ibrahim Osman Farah, described the agreement as a vital milestone for the region’s development.
He noted that the local population, comprised largely of farmers and pastoralists, is prepared to leverage the region’s natural resources but has long been constrained by financial barriers.