Customary Laws Regulating Traditional Financial Institutions in Tigray Regional State (Ethiopia): A Brief Introduction to Eqqub and Iddir

This paper offers a short account of the legal framework of traditional financial institutions in Tigray known as “Eqqub” and “Iddir”. Eqqub and Iddir are very old traditional institutions in Ethiopia that maintain their importance up to till today. They become even more and more relevant as time goes on and as the economy becomes stronger. Unlike many other traditional institutions that have vanished or diminished with the introduction of new laws and technology, Eqqub and Iddir are flourishing and becoming the hub of the financial industry in many aspects. This paper, therefore, explains customary laws, values and practices that guide and regulate the traditional financial institutions such as Eqqub and Iddir. The paper describes the two institutions based on interviews with key informants and based on discussions during the conference organized to officially inaugurate the project. The paper also draws on more than 30 court cases that were collected from all wereda courts in the Regional State of Tigray to demonstrate how courts assist the traditional institutions to enforce their internal laws.