Addis Ababa — Ethiopia’s largest lender said it directed the vast majority of its new credit to private businesses in the first half of the 2018 Ethiopian fiscal year, underscoring a gradual shift toward private-sector financing as the country pursues economic reform.

The Commercial Bank of Ethiopia disbursed 321 billion birr ($5.6 billion) in loans during the six-month period, according to figures released at its mid-year performance review. Of that total, 293.9 billion birr — more than 91% — went to the private sector, including manufacturers, distributors, exporters and firms operating across services and other investment areas.

The bank also said 51.3 billion birr of the lending was extended through CBE Noor, its Sharia-compliant banking window, highlighting growing demand for Islamic finance products in the country.

While CBE has historically been a major financier of government-led infrastructure and development projects, executives said the lender is expanding access to credit for private borrowers during the current fiscal year. New and expanded facilities include diaspora-focused loan products, aimed at mobilizing foreign-currency inflows and supporting investment by Ethiopians abroad.

The lending mix comes as Ethiopia works to rebalance its financial system, encourage private-sector growth and reduce reliance on state-directed credit, part of a broader reform agenda supported by international partners.