From Staking the Home to Banking the Harvest: How Asset-Backed Finance is Transforming Ethiopian Farming: Bekelech Wakjira’s Journey

Name: Bekelech Wakjira Location: Hetosa, Etaya, Oromia Age: 50 Family: Married with five children Livelihood: wheat production Land Size: 2 hectares Farming Experience: 34 years

For 34 years, Bekelech Wakjira has relied on her 2-hectare farm in Hetosa, Etaya, to support her family. Wheat production has long been the backbone of her household income. Before joining the Collateralized Commodity Finance (CCF) program, she faced uncertainty every planting season and struggled to secure the loans needed to prepare. For decades, the only way for Bekelech to secure the funds needed for seeds and fertilizer was to put her family’s home up as collateral a high-stakes gamble that kept her in a constant state of anxiety.

“When our house was used as collateral, it was always a source of worry for our family,” Bekelech recalls. “After learning about the CCF project, we started using our crops instead, which has made everything much easier.”

The Power of Collateralized Commodity Finance (CCF)

The shift Bekelech describes is part of the Lersha CCF project, implemented in partnership with the International Finance Corporation (IFC). This initiative is designed to dismantle the financial barriers that prevent smallholder farmers from scaling their operations. By moving away from traditional fixed-asset collateral (like homes or land certificates) and toward commodity-based lending, the project provides a safer, more logical financial path for rural producers.

Lersha’s impact goes beyond the loan itself through several key agricultural initiatives such as phygital service delivery, Precision Agro-Climate Advisory, Mechanization on demand and Integrated Crop Insurance. Furthermore, this partnership is a cornerstone of the IFC’s broader strategy to modernize Ethiopia’s agricultural value chain. By supporting digital platforms like Lersha, the IFC aims to achieve Financial Inclusion, Empowering Women Agri-Entrepreneurs and Boosting Import Substitution in Ethiopia.

“Receiving the loan on time allows us to buy seeds for the next season and avoid running short of money,” she says. “The storage support protects our crops from damage and keeps them in good condition, which gives us confidence in our harvest.”

Looking ahead, Bekelech is optimistic. With reliable access to finance and storage, she plans to expand her farm and grow more wheat. She also encourages other farmers in her community to adopt the CCF system to safeguard their crops and improve their livelihoods.

Bekelech

“Thanks to the project’s support, we plan to grow more and improve our farming in the future. I also hope more farmers can take advantage of this program,” she adds.

Bekelech’s story illustrates how Lesha’s-IFC CCF project empowers farmers to manage financial and market risks, turning their harvests into confidence, careful planning, and new opportunities. By enabling crop-based collateral and timely access to loans, Lersha is helping farmers navigate challenges and strengthen the future of Ethiopia’s agriculture.