Development Bank of Ethiopia has a history of struggling to recover loans to investors as clients who borrowed money fail to pay it back.
In 2018, there was a report indicating that bad loans from the bank reached well over 30 percent. There were times when it managed to recover from foreclosure.
A news report by DW Amharic, published on Thursday, seems to suggest that days of struggle to recover money borrowed from “investors” are not bygone.
114 investors who borrowed over 2 billion Ethiopian birr from the bank to work in the Benishangul Gumuz region of Ethiopia have disappeared, according to the source.
DW Amharic cited the region’s rural land administration and Investment office that the investors have disappeared without starting business activity for which they borrowed huge loans from the bank.
69 thousand hectares of land was distributed to the investors, according to Amante Geshi, a senior official in the region’s investment office, who spoke to DW Amharic.
He said the region has also lost money it was supposed to get from the land distributed to the “investors” in the form of tax.
From what he said, they were supposed to engage in the agriculture and mining sectors.
Yet, the regional state is claiming that this year has seen progress in investment in those areas.
According to authorities in the region, about 4 percent of youth in the region are engaged mining and agricultural activities.
It is unclear from the report if the investors are in the country or aboard.
Last year in December, 74 members of Ethiopian in the Diaspora reportedly submitted a request for an investment licence to engage in the hotel industry and agriculture.
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