Ethiopia Prepares to Launch Mortgage Banking to Address Housing Crisis

251 Communications and Marketing Private Limited has officially launched the 7th Annual Real Estate and Home Expo. The event is taking place from December 27 to 29, 2024, at the Sheraton Addis Inter Luxury Collection Hotel.

The opening ceremony featured a panel discussion focusing on policy insights, land management, financial mechanisms, and raising public awareness. Tsegaye Moshe, Housing Development Lead Executive Ministry of Urban Development and Infrastructure(MoUDI) , revealed the government’s plan to design a Mortgage Banking Law, stating, “It is on the way. Potential long-term financial sources have been identified.”

During the discussion, Zemedeneh Nigatu, Global Chairman for Fairfax Africa highlighted Ethiopia’s pressing housing challenges. “With a population growing by about 3 million annually, Ethiopia is in a significant housing demand. The main hurdle in housing is the lack of long-term financing,” he noted. Drawing on international examples, Zemedeneh emphasized the necessity of mortgage banking to make housing more affordable.

Tsegaye also underlined the urgency of addressing substandard housing in Ethiopia, stating, “Ethiopia is urbanizing at the rate of 5.4%, but about 74% of houses in Ethiopia are substandard. That is why we introduced the Real Estate Development and Immovable Property Marketing and Valuation Proclamation.”

This three-day event brings together top developers, investors, financial institutions, home builders, interior designers, and other key stakeholders in Ethiopia’s real estate and construction industries. The Expo aims to showcase the latest developments, innovations, and investment opportunities in the sector while fostering networking and collaboration among industry leaders.

Recognizing the private sector’s pivotal role in economic growth and infrastructure development, Ethiopia has enacted Decree No. 1076/2018 to encourage public-private partnerships. This Expo is expected to further this initiative by serving as a vital resource for advancing Ethiopia’s housing and urban development goals.

Addis Alemayehou, founder of 251 Communications and Marketing, stated, “This year’s Expo is a milestone, bringing together the most influential players in the industry. We are committed to supporting the sector’s growth by creating an interactive platform that fosters sustainable development, innovation, and investment,” he said.