Ethiopia: Prime Minister Abiy Oversees Ethiopia-IFC Deal to Establish Mortgage Refinance Company

What the report says

Ethiopia’s Prime Minister Abiy Ahmed on Thursday oversaw the signing of a Framework for Cooperation between the National Bank of Ethiopia and the International Finance Corporation (IFC) to create a dedicated Mortgage Refinance Company, according to the Ethiopian News Agency report distributed by AllAfrica. The agreement is intended to support the country’s housing finance system and address liquidity gaps in the banking sector.

The planned wholesale institution is described as having capital of 100 billion birr, with the IFC expected to contribute at least 200 million US dollars. The project is meant to make mortgage lending more available across Ethiopia and to help banks better manage long-term housing loans.

In a social media post cited by the report, Abiy said the partnership is an important step toward easing housing finance bottlenecks and broadening financial inclusion. He linked the initiative to Ethiopia’s wider goal of delivering 1.5 million affordable homes for families and strengthening private-sector involvement in the financial system.

More broadly, mortgage refinance companies are used in some markets to provide longer-term funding to lenders, which can help expand access to home loans. The article presents this deal as part of Ethiopia’s effort to build a more resilient and inclusive economy.