Ethiopia Partners with IFC to Establish First Mortgage Refinance Company

The National Bank of Ethiopia and the International Finance Corporation (IFC) have signed a cooperation agreement to establish Ethiopia's first Mortgage Refinancing Company (MRC). The initiative aims to address long-standing housing finance challenges and develop the country's mortgage market. The new entity will start with a substantial initial capital injection of Br 100 billion. As part of the agreement, the IFC is contributing US$ 200 million to support the establishment and operationalization of the company. The development comes as economic analysts review housing market models and lessons from other African countries, including Kenya, Tanzania, and Egypt. The project is expected to enhance liquidity for commercial lenders and expand access to long-term home loans across Ethiopia.