Access to Credit Against Movable Collateral Under Ethiopian Law


As of July 1, 2020, Ethiopian banks shall commence to allocate at least 5% of their credit disbursement to businesses that offer movable property as collateral. The National Bank of Ethiopia has launched a collateral registry to operationalize access to credit against movable collateral.

Why Movable Property Security Right ?

Businesses in Ethiopia had always found it difficult to access to credit ,especially if they couldn't provide immovable property as collateral. The country introduced a Movable Property Security Right law (Proclamation No. 1147/2019) to enable creation and enforcement of security rights in movable property. Businesses in Ethiopia can now borrow money from banks and other financial institutions against movable property as collateral.

How does the Collateral Registry Work?

The Collateral Registry is housed in the National Bank of Ethiopia . A secured creditor or its authorized representative shall fill the required application form on the Collateral Registry's website. Once the application is approved by the Registrar, the creditor or its representative shall set the password for its account and authorize individual users of the account . The creditor or its authorized representative can then register initial notices of creation of security rights, amendment of notices to add collateral or grantor, etc.

An initial notice shall contain the following information:

  1. identifier and name of the grantor ( I. e. the person that creates a security right over a movable property or a buyer, lessee, transferee or licensee of the collateral that acquires its right subject to a security right);
  1. identifier or name of the secured creditor;
  1. address of the grantor and the secured creditor;
  1. description of the collateral;
  1. period of effectiveness of the registration;
  1. any other information to be collected for statistical purposes only.

A public search of a record may be made according to the identifier of the grantor or the serial number of the collateral. Services of the Collateral Registry Office are available 24/7.

What can customers expect from Banks and Financial Institutions?

Banks, microfinance institutions and capital goods finance companies have an obligation to formulate and implement clear procedures for secured transactions. They are required to assign a senior officer to oversee the use of the Collateral Registry . They must also assign a senior officer to ensure strict data access procedures.

We have a team of specialists who can provide guidance and advice on credit security structures available to your business and the best options in relation to tax and legal requirements . To speak to a member of our team, simply get in touch with us by using the contact form at the bottom of the page . You can also send your email to This email address is being protected from spambots. You need JavaScript enabled to view it. .