ADDIS ABEBA – Commercial Bank of Ethiopia has availed over 6 billion birr loan for members of taxi owners seeking to change their old ‘Lada’ with new cars.
The announcement was made during a signing ceremony between Addis Ababa Lada Taxi Associations and Elauto Engineering and Trading Plc late Tuesday.
According to the agreement, members of the associations will get new car assembled by the company in Ethiopia. The company plans to assembler a within three months.
Members will make 20 percent down payment while a loan from CBE covering the remaining 80 percent.
As per the agreement the CBE has availed up to 6bln birr to be loaned out to members, reported Ethiopian news agency or ENA.
Engineer Sitotaw Akale, head of Addis Ababa transport bureau, hailed the deal saying it would help provide efficient and convenient transportation services to Addis Ababa residents.
The official said the Lada taxies in the city need changing with some of them having already served for over 50 years since their production date.
With 185 member associations, Addis Ababa Lada Taxi Associations has 10, 000 taxi owners as members.