Somali Region Farmers Get Boost From Ethiopia's Commercial Bank

By Asha Elmi - Reporter

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.

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“Our people are pastoralists and farmers, and they are ready to benefit from the resources available in our environment,” the Vice President said.

Farah specified that the credit program will focus on supporting farmers holding between 10 and 30 hectares of land. By providing the farmers with the necessary liquidity, the regional government aims to boost yields and strengthen food security across the territory.

The Vice President of the Commercial Bank of Ethiopia for the Eastern Region, Mohamed Khadiro, attended the signing alongside various regional stakeholders. The bank’s involvement signals an effort to integrate the Somali Region’s agricultural sector into the national financial system, providing a structured path for small and medium-scale producers to scale their operations.

The initiative comes as the region seeks to build resilience against climate volatility through improved agricultural techniques. Regional authorities expect the influx of capital to facilitate the purchase of modern equipment and high-quality inputs, ultimately raising the standard of living for rural communities.

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