When Credit Capping Hits 24% — and Logic Hits Zero
Correction: The 24% Figure Explained — and Why the Problem Remains the Same.
The much-circulated 24% was not Ethiopia’s lending rate but the annual cap on credit expansion — the ceiling on how much new money banks can lend each year. Yet this technical correction changes little: whether through suffocating interest rates or restrictive credit policy, Ethiopia’s banking system remains trapped in a cycle that starves growth while serving debt.
