FORTUNE+ VIDEO SPONSORED CONTENTS FORTUNE AUDIO TRADE AFRICA new

Fortune Logo

Addis Abeba’s Mayor, Adanech Abiebie, was given a tour of the headquarters of Goh Mortgage Bank as it opened its doors last Monday by Mulugeta Asmare (centre) and Gebreyesus Egata (right), president and board member, respectively. On Zimbabwe Street (off Bole Road around an area known as Japan), Goh has been on a two-year journey to house itself in this building since its inception.


The promoters of the Bank and the Mayor took turns speaking on the chronic housing shortage in Addis Abeba. Driven by inflation, the property market is soaring, compelling the city administration to freeze the increase on rent and ban the evictions of tenants for three months. Goh, which received its operating license in August, and raised a subscribed capital of 1.2 billion Br, also chipped in 1.5 million Br to the city’s housing renovation initiative for low-income families.


The Bank is the lone mortgage bank in a country where demand for housing far outstrips supply, especially as the population grows and economic migrants from rural areas make cities ever denser. While commercial banks offer short-term mortgage loans, the interest rate and repayment period are out of range for most Ethiopians. The Addis Abeba City Administration's plans to provide condominium housing have faltered in the face of delays, cost overruns and controversies.


Goh’s only competitor would have been Selam Bank, an initiative under formation but facing an uphill struggle as the deadline to raise half a billion Birr, the minimum paid-up capital requirement to open a bank, has passed. Selam now needs to raise five billion Birr to get its foot in the door and compete with Goh. It can potentially go for a merger with other banks, though none have plans to specialise in mortgage banking.


PUBLISHED ON Oct 30,2021 [ VOL 22 , NO 1122]

How useful was this post?

Click on a star to rate it!

Average rating 5 / 5. Vote count: 2

No votes so far! Be the first to rate this post.



Related Posts

Put your comments here

N.B: A submit button will appear once you fill out all the required fields.

Editors' Pick

Editorial

Policy Unpredictability Pernicious, When Frequented Dreadful

Dec 24 , 2022

Biniam Mikru heads the department of cabinet affairs under Mayor Adanech Abiebie. But...

Agenda

Is the Coffee Bonanza Here to Stay?

Jul 2 , 2022 . By RUTH TAYE

On a rainy afternoon last week, a coffee processing facility in the capital's Akaki-Qality District was abuzz with activ...

Editorial

Financial Sector-sourced Glucose Drips No Remedy to Save Economy

Nov 27 , 2021

Against my will, I have witnessed the most terrible defeat of reason and the most sa...

Editorial

Contingency Economic Plan Necessary to Reconcile with Political Storm

Nov 13 , 2021

Plans and reality do not always gel. They rarely do in a fast-moving world. Every act...

Commentaries

Privation Translates to Opportunity

The past year has been challenging for Africa. After a hopeful 2021, during which the...

Debasing the Birr: A Delicate Balance

The policy decision to devalue the Birr against a basket of major currencies can be p...

Fineline

Leaders of the National . . .

Leaders of the National Election Board are in a charm offensive mood, of a sort. Last week, they organised a rare tour for members of the me...

When the country’s most. . .

When the country's most senior diplomats and envoys return back to their posts after two-week debriefings, they leave behind a point or two...

Editorial

What Organising, Operating Principles Prosperitians Follow?

Jan 21 , 2023

Eyob Tekalign, state minister for Finance, took to social media platforms last week t...

Giving Ethiopia’s Tactical Peace Strategic Substance

Jan 14 , 2023

The longing for normalcy and a semblance of individual and collective security in Eth...

Worldview May Drive the Administrations' Warped Priorities

Jan 7 , 2023

The hallmark of Ethiopia's contemporary leaders could be a fascination with grandeur...

Corruption Alarms Need Serious Measures

Dec 31 , 2022

A change of guards in 2018 gave Ethiopians hope for better circumstances from the pre...

Gallery

Parliament Approves New Cabinet Members

Oct 6 , 2021

Parliament Approves New Cabinet, Incorporates Opposition Leaders Lawmakers have approved today the nominations of 22 ministers, including three opposition leaders. Two MPs have voted against, while 12 abstained...

2020 in Posterity

Jan 5 , 2021

TIGRAY VOTES DESPITE "NULL & VOID" THREAT

Sep 9 , 2020

IN-PICTURE: LAUREATE'S RECEPTION  

Dec 14 , 2019

PM Abiy Ahmed (PhD) at a Gala Dinner Called for the Awarding of the Félix Houphouët-Boigny Peace Prize

May 6 , 2019

Faces, Voices of Addis Abeba

Apr 26 , 2019

Sunday With Eden

The Power of Unlearning Chaos and Claiming Responsibility

Those who think all parents could be good examples at all times should look no furthe...

Judging the Hypocrisy of Court House Trauma

I have never met anyone who appreciated court proceedings. It has become a traumatic...

Life Matters

The Cost of Truth in Relationships

I found myself in an awkward situation one of the days last week. The plan was to have lunch with two of my friends, but one of them was fas...

The Endless Quest for Control

I have had the chance to discourse with my psychologist friends, who told me about their experience with many clients with anxiety and othe...