Amanze Chinonye
Ethiopia’s central bank and the International Finance Corporation (IFC) have signed a framework agreement to establish the country’s first dedicated mortgage refinance company, aimed at easing long-term funding constraints in the banking sector and expanding access to housing finance, Prime Business Africa reports.
Prime Minister Abiy Ahmed oversaw the signing of the Framework for Cooperation between the National Bank of Ethiopia and the IFC on Thursday.
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The proposed wholesale mortgage finance institution will have capital of 100 billion Ethiopian birr, with the IFC expected to contribute at least $200 million.
The company is intended to address a mismatch between banks’ predominantly short-term funding and the long-term financing required for mortgages. By providing longer-term wholesale funding, it could enable lenders to expand mortgage lending and improve access to home loans.
The initiative supports the government’s plan to deliver 1.5 million affordable homes for Ethiopian families and increase private-sector participation in housing and financial services, Abiy said.
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The agreement comes as Ethiopia seeks to attract private investment as part of wider economic reforms. The IFC has been expanding its engagement in the country across sectors including financial services, manufacturing, agribusiness, healthcare, tourism and telecommunications.
The Ethiopian government said the IFC has a portfolio of about $500 million in the country.
Further details on the proposed company’s ownership structure, governance, additional investors and timetable for operations were not immediately available.
Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.
