Coopbank, Kifiya launch Sharia-compliant lending that has already moved ETB 200M
What's the deal? Cooperative Bank of OromiaDealroom has a profile for this one. Try Dealroom → and KifiyaDealroom has a profile for this one. Try Dealroom → Financial Technologies have launched Michu Mizan, a Sharia-compliant digital financing product for micro, small and medium enterprises (MSMEs) and smallholder farmers in Ethiopia. The two unveiled it at an event at Sheraton Addis, attended by government representatives, industry leaders and development partners.
What's the endgame? Michu Mizan pairs Coopbank's financing capacity with Kifiya's artificial intelligence-powered risk assessment and financial infrastructure. Customers can also source goods through HalalGebeya. The aim: close financing gaps for businesses and farmers who want services that comply with their religious values.
By the numbers: The product has already disbursed more than ETB 200 million to over 4,000 businesses during its pilot phase, according to Kifiya. It extends the pair's existing Michu model, which the bank reports has disbursed more than ETB 70 billion.
Why now? Interest-free banking is expanding in Ethiopia. Recent reporting says 24 banks now offer such services, with financing totaling ETB 237.2 billion. Michu Mizan's offers are capped at ETB 100,000 for its women-focused Yusra product and ETB 300,000 for MSME working capital and expansion.
The launch featured an endorsement from the Sharia Advisory Board, a live demonstration and a discussion between Kifiya chief executive officer Munir Duri and Coopbank chief executive officer Deribie Asfaw.
The signal: The move is a targeted push of digital small-business finance into a fast-growing segment, rather than a shift in scale. As Ethiopia's banking sector opens up, lenders are racing to build digitally enabled products for customers the market has long underserved.
Read more: stockmarket.et
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