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Microfinance institutions (MFIs) in Ethiopia are offering farmers a new financial product: the SLLC-linked individual loan product
With Second Level Land Certification (SLLC), MFIs have the security of knowing the ownership and exact landholding size of farmers. This has allowed the development of an innovative individual lending product that uses the produce of the land as a form of guarantee.
The vision of Ethiopia (GTP-II) is to become a lower middle-income country by 2025
With Second Level Land Certification (SLLC), farmers gain increased security of tenure: this incentivises them to invest more in their land.
To allow for this productive investment to take place, the Land Investment for Transformation (LIFT) programme is working with micro finance institutions (MFIs) to roll out an innovative financial product: the SLLC-linked individual loan.
Accessing longer terms and larger size loans allows farmers to increase the productivity of their land, graduate from subsistence farming, and become more commercially oriented.