Ethiopia’s Cooperative Bank of Oromia and Kifiya Unveil Michu Mizan to Expand Access to Sharia-Compliant Financing

Cooperative Bank of Oromia (Coopbank) and Ethiopian fintech company Kifiya Financial Technology have launched Michu Mizan, an AI-powered digital platform designed to expand access to Sharia-compliant financing for underserved small businesses, which has already provided more than 200 million birr to over 4,000 customers during its pilot phase.

The initiative combines Coopbank’s interest-free banking services with Kifiya’s expertise in artificial intelligence, data analytics and digital financial infrastructure.

The launch brings together two companies with distinct but complementary roles in the rapidly evolving financial services industry of Africa’s second-most populous country. Coopbank, established in 2004 and beginning operations in 2005, grew out of the country’s cooperative movement and provides conventional and interest-free banking services. Kifiya, an Addis Ababa-based financial technology company established in 2012, has built its business around using data and artificial intelligence to extend financial services to businesses and individuals often overlooked by conventional lenders.

Michu Mizan operates through Coopbank’s interest-free banking window and uses artificial intelligence and alternative data to assess financing applications. The platform offers fully digital applications and real-time financing decisions without requiring traditional collateral.

Its introduction extends the institutions’ existing partnership through Michu, their digital MSME financing platform, which has disbursed 70 billion birr. Michu Mizan takes the collaboration into Sharia-compliant financing, addressing businesses that face difficulties accessing formal finance or require products aligned with their religious principles.

More than 1,000 suppliers have also joined Michu Mizan during its pilot phase. By eliminating collateral requirements, the platform opens access to businesses underserved by traditional financing approaches. Through Kifiya’s Halal Gebeya, a Sharia-compliant e-commerce service, customers can select and purchase goods from their preferred vendors as part of the financing process. Across the platform and its supporting solutions, Sharia compliance is embedded by design, building customer trust throughout the financing and purchasing journey.

“Mizan means balance, and that is what we are working towards: bringing the economic potential of underserved businesses into better balance with their access to appropriate financing”, said Deribie Asfaw, CEO of Cooperative Bank of Oromia.

“Our work together through Michu has proved the importance of building financial services around customers’ realities. With Michu Mizan, we are extending that commitment through Sharia-compliant digital financing that respects their faith, responds to their business needs and creates economic opportunities for growth”, he said.

Kifiya Founder and CEO Munir Duri said the platform applies the company’s AI-based data decisioning and financial infrastructure to businesses that have historically struggled to access formal financing.

“Through Michu Mizan, we are applying our experience in AI-native data decisioning and Intelligent Financial Infrastructure to make underserved MSMEs visible and investable”, he said. “The shopkeepers, traders, smallholder farmers and manufacturers who have always kept this economy moving can finally access Sharia-compliant financing and unlock opportunities for growth. Our technology enables responsible access at scale, but the real shift is from invisible economic activity to viable businesses finally being seen, financed and able to grow”.

The platform currently offers two financing products. Michu Mizan Yusra provides up to 100,000 birr for women-led businesses, while Michu Mizan Tajir offers up to one million birr to eligible MSMEs for working capital and business growth.

The two institutions said their next priority is to expand access while maintaining Sharia compliance and responsible financing practices.