Reviving Mortgage Banking, the Bumpy Road Ahead

Two newly established banks, Goh Betoch and Selam, are attempting to revive mortgage banking in Ethiopia to address a severe housing shortage. Ethiopia faces annual housing demand of 400,000 units against supply of less than 100,000, creating a backlog exceeding one million units. Experts warn the banks face significant obstacles, including inadequate legal frameworks for mortgage lending, difficulty mobilizing long-term funds, and the absence of specialized regulatory guidelines from the National Bank of Ethiopia.