Fortune News | Nov 09,2019
Nov 2 , 2019
By TEMESGEN MULUGETA ( FORTUNE STAFF WRITER )
A company aiming to provide consultancy services solely to the diaspora in Ethiopia has opened its doors. Addis Landmark Group Plc (ALG) provides services related to bank loans, property management, commercial and residential housing, construction management and business management.
Founded by Mistere Sisay, who has worked in the US banking industry for the last 15 years, the company will also provide mortgage consultancy service and mortgage document processing.
ALG’s primary focus is to generate mortgage loans in foreign currency by marketing loan packages to the diaspora. The average price of the services ALG offers is 250 dollars.
"Our business plan not only will generate substantial mortgage loans for the Ethiopian banking industry and increase real estate sales and investment in Ethiopia, but it will also address several issues banks and future clients face,” she added.
The company, established with capital of five million Br, received a business license from the Addis Abeba Trade & Industry Bureau last year. The company has been conducting research for the past two years on Ethiopia’s loan procedures.
The Group also approached Awash, United and Dashen banks and the Commercial Bank of Ethiopia, which are offering diaspora mortgage loans for the past year to inquire about the issues they face and to identify ways the firm can address problems related to lack of clients, submission of incomplete documents and direct communication with clients. Currently, ALG has partners in Virginia, Maryland, Dallas, Boston, LA, Seattle and Dubai.
Ethiopia’s banking industry, which has banks that have over 2,300 branches as well as 35 microfinance institutions, has grown rapidly over the past several decades. It saw a 23.6pc spike in deposit mobilisation in the last fiscal year and disbursed 115.4 billion Br in loans, almost six percent higher than the previous year.
The percentage of adults with bank accounts has also increased from 22pc in 2014 to 35pc three years later, according to the World Bank's Global Index database. In contrast, 82pc of Kenya’s adults had bank accounts in 2017.
One expert sees the wisdom in establishing this type of consultancy firm, especially with a focus on mortgages, because it can simplify the procedures the diaspora community has to go through to play a part in the economy and invest in the country.
“It can encourage other consultancy firms to join the sector,” said Hailemariam Kebede (PhD), a lecturer at Addis Abeba University's School of Commerce. “It can also increase the flow of forex and create job opportunities.”
In developed countries, the mortgage consulting industry generates over 15 billion dollars worth of loans for banks every year.
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