Cooperative Bank of Oromia and Kifiya Financial Technology have announced a partnership to launch Ethiopia’s first uncollateralized digital lending product, Michu.

Coop Bank’s Michu is Ethiopia’s first uncollateralized digital lending product, powered by Kifiya’s Qena, an AI-driven digital lending platform.

The partnership allows Coop Bank to tap into Kifiya’s digital lending technology and gives Kifiya the ability to leverage Cooperative Bank of Oromia’s distribution and financial capacity. The Bank will offer lending solutions targeting Micro, Small, and medium businesses (MSMEs), providing access to credit through groundbreaking and cutting-edge credit scoring systems.

Research shows that Ethiopia’s MSME financing to GDP ratio was 2% in 2020. This ratio is lower than South Africa’s 14% and Kenya’s 6% in 2020. Ethiopia’s poor ratio is attributed to the crowding-out of credit by the public sector and high requirements for loans to MSMEs by micro-finance and commercial banks.

Related- Qena: The Digital Lending Solution Opening Doors for MSMEs in Ethiopia

Financial institutions place high requirements, partly due to a lack of credible credit ratings. Michu’s ease of access enables users to apply for loans and receive decisions based on credit scoring logic. The loan application process, from eligibility and verification to analysis, scoring, and loan disbursement, gets completed within a few minutes.

We are excited to join hands with Kifiya as we expand our digital financial offerings and deliver support to the financing needs of micro and small businesses that are often neglected but represent a significant part of the economy,” says Deribie Asfaw, President of Cooperative Bank of Oromia.

“Today’s partnership with Coop Bank marks an exciting era for the Ethiopian Digital Economy as Kifiya’s Qena technology heralds uncollateralized digital lending in the country. With the help of our AI-powered credit scoring digital lending platform, we hope to address the needs of uncollateralized finance in the MSMEs sector in Ethiopia, “says Munir Duri, CEO of Kifiya Financial Technologies Plc.

Michu will have different offerings for Micro, Small, and Medium Businesses, both in the form of loans and overdraft facilities. The Microloan is aimed toward the working capital needs of roadside traders and micro businesses with a maximum loan amount of 30,000 ETB and has a repayment period of 1–4 months.

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Meanwhile, the small and medium loans target traders at small and medium levels, with a maximum loan amount of 150,000 birr and a repayment period of up to one year. Moreover, the loans are intended to cover the working capital of the MSMEs. Michu also has another product targeted at employees of various organs called Consumer Loan.

The non-collateral digital lending product is a new loan service that is innovative and makes the loan service process swift, non-collateral, and easy to access anytime and anywhere. The product uses data to determine creditworthiness and offers a flexible payment method. The Michu digital lending product is expected to increase Coop bank borrowers by 30% during the pilot period.



  • Dhaba Magarsa, January 12, 2022 @ 10:05 pm

    All Ethiopian citizens should be feeling as home our young bank coopbank

  • nego ebrahim geda, January 13, 2022 @ 8:15 am

    hello nagayaa akkam fayyya keessani wanti amma fidan kun waan baayee manati tolu garuu hojjataa motummaa waan ilalatu akkamiti iltu ????

  • Usmael Abrahim, January 13, 2022 @ 3:35 pm

    How can I apply it?

    • Usmael Abrahim, January 28, 2022 @ 5:50 pm

      When apply this service?

  • muluken, January 13, 2022 @ 8:46 pm

    How can i apply?

  • Abdi, January 14, 2022 @ 8:58 am

    Wehn it starts?

  • adane dessie, January 14, 2022 @ 3:44 pm

    Great & New looking for our Country!! Keep it up COOP

  • Temu Lj habesha, January 15, 2022 @ 5:12 pm

    I am interesting

  • GADISA ALI, January 19, 2022 @ 6:39 pm

    Good luck for micro finances and digital Banking

  • Nuredin Misbah, January 21, 2022 @ 4:12 am

    It’s good but how can I get access to Michu non-collateral loan???

  • Kalid Hajii, January 22, 2022 @ 2:29 pm

    I am Very to Work With Your Organizations Without any restriction

  • Misgana Takele, January 26, 2022 @ 5:03 pm

    I’m happy!
    Very good company
    Thank-you very much
    Oromiya Bank!!

  • Misgana Takele, January 26, 2022 @ 5:10 pm

    Ani baay’ ee Jaladheera
    Itti fayyadamuufis qophiidha
    Maamila Michuu ta’uufis
    Kayyo hojii warri qabdan itti

  • BONSA NEGESSE, January 31, 2022 @ 5:07 pm

    be change

  • Dinkayehu Ayire, February 4, 2022 @ 8:02 pm

    Could you guys Please share the link of michu app.

  • Berewak, February 4, 2022 @ 9:43 pm

    I want to loan the money and do business with My professional how can I get this application

  • Fedilu Ousman, August 16, 2022 @ 10:00 pm

    Michuun wantaa bayyee namaa fayyaduu fi namaa gargarudha hubannoo kennuu irratti hojjetun bayyee barbachisadha.


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