A workshop hosted by Addis Chamber calls for sound regulatory framework to carryout Intellectual Property and Credit Scoring Based Loan Services in Ethiopia

A workshop hosted by Addis Chamber calls for sound regulatory framework to carryout Intellectual Property and Credit Scoring Based Loan Services in Ethiopia
(Addis Chamber, April 05, 2024): Hosted by Addis Chamber in partnership with Center for International Private Enterprise( CIPE) a meeting was convened to discuss on the potential of inclusive credit services to bolster Small and Medium Enterprises in Ethiopia to ensure their sustainability.
Having the theme “Innovative Alternatives to Conventional Collateral Based Loan Services in Ethiopia” the workshop had attracted key stakeholders from financial sector, business communities, representatives of NGOs and entrepreneurs among the few to cite.
In his opening remark at the workshop, Seyoum Chane, Deputy Secretary General, from Addis Chamber disclosed the commitment of his organization to host and advocate on various pertinent issues that concerns the interest of business communities.
As part of such advocacy undertakings, Addis Chamber has commenced to host successive advocacy platforms to support its business communities and members.
In its latest intervention, Addis Chamber envisions to raise the awareness of business communities towards Intellectual Property (IP) and Credit Scoring Based Loan Services to support emerging businesses with potential to grow.
Such services, according to Khalid (PhD) a financial researcher, the IP and Credit Score based loan services have the potential to enhance financial inclusion and provide an alternative source of funding.
He however said that there are certain concerns that need to be addressed to ensure their effectiveness and integrity.
To address these challenges, he said, it is essential to introducing relevant regulatory framework to establish robust monitoring and reporting mechanisms, continuously evaluating and improving credit scoring models, prioritizing financial literacy and consumer protection, and fostering innovation, capacity building and competition among credit scoring and IP valuation services providers.
By doing so policymakers can ensure that IP asset and credit scoring based loan services contribute to greater financial inclusion, provide fair access to capital, and protect the rights and interests of borrowers, further remarks.
The researcher also underlines that such kinds of services, however, need to be strengthen through the right regulatory framework to expand the already commendable impact they are making by availing credit scoring based loan services even though they make use of limited and tailored data considerations for assessing creditworthiness.
Succeeding the presentation, participants of the workshop have forwarded inputs to further consolidate and produce an effective regulatory environment on IP and credit scoring loan based services that can genuinely support SMEs in Ethiopia.