CBE introduces interest rate increases

Commercial Bank of Ethiopia says the increase in interest rates is introduced to stay competitive in the sector  

Borkena

Toronto – Commercial Bank of Ethiopia is introducing  interest rate hikes up to six  percent. Interest rate changes are introduced for export trade, agriculture, merchandise and other kinds of loans.  The Bank says the change is part of the effort to make the financial sector competitive. 

Wazema radio reported expenses for saving account related activity expenses of the bank , low interest rate for loans compared to other financial services and  the need to increase the profitability of the bank are given as reasons for the introduction of interest rate increases. 

Interest for non-export merchandise is up to 16.5 percent from 15.5 percent.  Interest rate for export commodity trade is now 12 percent. It used to be 8.5 percent. 

Loans for the agricultural sector will have 15.5 percent interest rates.  Interest rate for condominiums will remain 12 percent.  

The change is effective as of Friday March 7, 2025. 

Private banks charge up to 22 percent interest rates in Ethiopia. 

In July 2024, the National Bank of Ethiopia introduced major changes in the financial sector including depreciation of Ethiopian birr against major currencies and a range of other changes including interest rates. 

The Commercial Bank of Ethiopia has not yet officially released new rates. Borkena will update readers when it becomes available. 

Background :

The latest date for Commercial Bank of Ethiopia published in 2023 shows that the Bank has 1948 branches across the country. By the end of December 2024, the bank announced a total asset of 1,9 trillion birr ( about US $14.8 billion) 

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