In a historic move to transform the country’s agricultural financing landscape, Ethiopia has officially launched the National Agri-Finance Implementation Roadmap (NAFIR) 2025–2030. The roadmap, a joint initiative by the National Bank of Ethiopia (NBE) and the Ministry of Agriculture (MoA), is set to unlock access to credit for smallholder farmers and strengthen financial inclusion in agriculture.

Agriculture: The Backbone of Ethiopia’s Economy

Agriculture remains Ethiopia’s economic foundation, contributing:

  • 32% of GDP
  • 64% of national employment
  • 79% of total exports

Yet, the sector receives less than 10% of national credit supply, with only 2% of potential agri-finance demand currently met. In 2023/24, only 8% of commercial bank lending and 18% of MFI loans went to agriculture, despite an estimated ETB 2.58 trillion in annual credit demand.

Why Agriculture is Under-Financed

Multiple structural challenges continue to limit agricultural financing in Ethiopia:

  • High cost and risk of lending
  • Small loan sizes and limited collateral
  • Sparse bank presence in rural areas
  • Low financial literacy among farmers
  • Fragmented initiatives with weak coordination

A Turning Point: Three Pillars of the NAFIR Strategy

Minister of Agriculture, H.E. Girma Amente, PhD, declared the roadmap as a “turning point” in addressing long-standing barriers in agri-finance. NAFIR introduces a holistic, data-driven, and incentive-based approach built on three strategic pillars:

1. National Agri-Finance Accelerator (NAFA)

NAFA will act as a refinancing and risk-sharing mechanism, pooling resources from the government, development partners, and private investors. It aims to:

  • Provide dedicated agriculture credit lines
  • Incentivize banks and MFIs with lower refinancing rates and pre-financing options
  • Offer risk-sharing instruments, including first-loss protection for underserved segments
  • Support value-chain finance through digital platforms, off-takers, and equipment vendors

2. Farmer Access to Streamlined Financial Services (FAST)

FAST is designed as a digital gateway for farmers to access financial services with minimal barriers. Key features include:

  • A unique FAST ID linked to Fayda ID, farm and livestock data, mobile number, and land records
  • QR-code and credit card-based access to financing
  • An automated credit scoring algorithm generating seasonal loan limits
  • Bundled crop/livestock insurance with every credit product
  • Digital wallets enabling payments for inputs, mechanization, and output sales—promoting value chain traceability and reducing side-selling

3. Agri-Finance Centre of Excellence (CoE)

The CoE will serve as a national coordination and capacity-building hub. It will focus on:

  • Implementing a National Agri-Finance Literacy Framework (NAFIL)
  • Supporting FIs to build agri-finance capabilities
  • Linking financial institutions with digital platforms via HAFIL (Hub for Agri-Finance Institutional Linkages)
  • Establishing a Permanent Agriculture Risk Management Working Group
  • Introducing tools for price risk management, currently absent in Ethiopia

Bold Vision: ETB 881 Billion Annual Agri-Credit Target by 2030

Governor of the NBE, H.E. Mamo E. Mihretu, highlighted NAFIR’s alignment with the National Financial Inclusion Strategy (NFIS) and its contributions to national priorities like livelihood enhancement, job creation, climate resilience, gender equity, and export growth.

“NAFIR is a catalytic, demand-driven roadmap shaped by cross-sectoral collaboration. It aligns with our Homegrown Economic Reform and national development goals.”
— H.E. Mamo E. Mihretu, Governor, NBE

NAFIR will be overseen by a steering committee co-chaired by the NBE Governor and MoA Minister, ensuring a whole-of-government approach. The roadmap aims to boost annual agri-credit flows to ETB 881 billion by 2030, a monumental leap from current levels.

Transforming Rural Finance for Ethiopia’s Future

The National Agri-Finance Implementation Roadmap (NAFIR) marks a decisive shift toward inclusive, scalable, and technology-enabled agricultural finance in Ethiopia. If implemented effectively, it promises to:

Drive agricultural transformation and national prosperity

Empower millions of smallholder farmers

Attract private sector investment

Bridge the rural finance gap