Ethiopia, IFC Agree to Establish Birr 100 Billion Mortgage Refinance Company
The Ethiopian government and the International Finance Corporation have partnered to launch a Birr 100 billion mortgage refinance company. This initiative aims to increase liquidity in the banking sector and support the construction of 1.5 million affordable homes.
Why it matters
This represents a significant structural reform in Ethiopia's financial sector intended to address housing shortages and stimulate private sector investment.
Ethiopia has signed a cooperation framework with the International Finance Corporation (IFC) to establish a mortgage refinance company aimed at expanding access to housing finance and addressing liquidity constraints in the banking sector.
Prime Minister Abiy Ahmed oversaw the signing of the agreement between the National Bank of Ethiopia (NBE) and the IFC on Thursday.
The planned Mortgage Refinance Company will be capitalized at Birr 100 billion, with the IFC expected to provide a minimum contribution of USD 200 million, according to information released following the signing.
The institution is expected to operate as a wholesale mortgage refinancing entity, providing longer-term liquidity to financial institutions involved in housing finance. The initiative is intended to address liquidity mismatches within Ethiopia's banking sector while supporting wider access to mortgage financing across the country.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in