• Manufacturers said private banks are restricting loans to industry early in the fiscal year, citing NBE lending limits.  
• NBE raised annual bank credit growth ceilings from 14% to 18%; some banks can expand lending up to 24%.  
• Firms said manufacturing loan rates initially set at 14%–15% were later increased to 23%–24.5%.  
• Manufacturers said financing shortages are limiting raw material purchases and disrupting production planning and cash flow.  
• Industry representatives said a ETB 20 million loan may require collateral worth ETB 50–60 million.  
• The concerns were raised at a March 12, 2026 public-private forum on finance and workspace constraints.  
• The Chamber signed an MoU with EDI Ethiopia, Addis Ababa Trade Goods Enterprise, and Awash Bank to support SMEs.  

Why it matters?

The report points to tighter bank credit, higher borrowing costs, and stricter collateral demands for Ethiopian manufacturers. These constraints can affect working capital access, raw material purchases, and SME expansion.