Cooperative Bank of Oromia Launches 'Mticu Mizan' Interest-Free Digital Lending

Cooperative Bank of Oromia (Coop) has launched 'Mticu Mizan,' a new Sharia-compliant digital lending service aimed at youth and women entrepreneurs. The platform integrates interest-free financing with a digital marketplace called 'Halal Market,' allowing small and medium enterprises to access collateral-free loans. Bank President Derbe Asefa stated that the service builds upon the bank's existing 'Coopbank Alhuda' interest-free window and leverages the infrastructure of its established 'Michu' digital lending platform. Sheikh Haji Ibrahim Tufa, president of the Ethiopian Islamic Affairs Supreme Council, noted that such initiatives are vital for enhancing financial inclusion for segments of society previously excluded from conventional banking. The service utilizes a Murabaha model, where the bank facilitates purchases on behalf of retailers. This launch aligns with the National Bank of Ethiopia's broader strategic focus on expanding interest-free banking services nationwide.