New 100 billion birr institution aims to unlock affordable home financing across the country….reports Africa Daily News Desk
Ethiopia has taken a major step towards expanding affordable housing finance after the National Bank of Ethiopia signed a framework for cooperation with the International Finance Corporation (IFC) to establish the country’s first dedicated Mortgage Refinance Company.
The new wholesale financial institution will be capitalised at 100 billion Ethiopian birr, with the IFC expected to contribute at least $200 million, according to the announcement.
The initiative aims to address long-standing liquidity mismatches in Ethiopia’s banking sector and unlock greater access to mortgage financing for households across the country.
Officials said the partnership forms part of Ethiopia’s broader plan to deliver 1.5 million affordable and dignified homes to Ethiopian families while increasing private-sector participation in the country’s financial system.
The Mortgage Refinance Company is expected to strengthen the housing finance market by providing longer-term funding to financial institutions, potentially making mortgage lending more accessible.
The government said the agreement marked a significant step in its efforts to build a modern, resilient and inclusive economy while addressing the country’s growing demand for affordable housing.
