New regulation allows farmers to use warehouse receipts as loan collateral

A new Council of Ministers regulation permits eligible Ethiopian farmers to pledge certified warehouse receipts as collateral for short-term loans of up to 70 percent of their stored crops' appraised value.

The regulation addresses the harvest-time pressure that often forces growers to sell crops at low prices to obtain cash for fertiliser and the next planting season. By enabling storage and borrowing against receipts, farmers can hold produce until market prices improve.

The measure was enacted by the Council of Ministers and reported on July 25, 2026. It creates a new lending product for banks while supporting agricultural producers through certified warehouse documentation.

No other outcomes or implementation details were specified in the announcement.

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