Addis Ababa, September 3, 2026 (FMC) — Ethiopian Prime Minister Abiy Ahmed today oversaw the signing of a landmark Framework for Cooperation between the National Bank of Ethiopia (NBE) and the International Finance Corporation (IFC) to establish Ethiopia’s first dedicated Mortgage Refinance Company, capitalized at 100 billion Birr.
In a message shared on his social media pages following the signing, Prime Minister Abiy said the IFC is set to contribute a minimum of $200 million to the wholesale institution. He said the institution will address long-standing liquidity mismatches in Ethiopia’s banking sector and unlock accessible mortgage financing across the country.
Prime Minister Abiy said the partnership is a critical step toward realizing the goal of delivering 1.5 million affordable and dignified homes for Ethiopian families, while also expanding private-sector participation in Ethiopia’s financial system.
He said Ethiopia continues to build a modern, resilient and inclusive economy, with the mortgage refinancing initiative forming part of efforts to strengthen the country’s financial system and expand access to housing finance.
The establishment of the dedicated wholesale institution is expected to provide a new financing mechanism for mortgage lending, helping address liquidity constraints that have limited the availability of longer-term housing finance while creating greater scope for banks and other private-sector actors to participate in the housing market.
The initiative therefore connects financial-sector development with Ethiopia’s broader affordable housing objective, with the new institution intended to help mobilize financing at scale for households seeking access to mortgage-backed housing.