The Commercial Bank of Ethiopia (CBE) and the Addis Ababa City Administration signed a memorandum of understanding (MoU) on Friday to finance housing for more than 41,000 government employees under the 25/75 cost-sharing program.

As part of the agreement, CBE will provide 120 billion birr in long-term financing, with a 20-year repayment period and favorable interest rates. The loan is expected to ease the persistent housing shortages faced by civil servants in the capital.

CBE President Ato Abe Sano said the initiative demonstrates the bank’s commitment to social development and financial inclusion. “We are offering this financing not just to build houses, but to solve a long-standing problem that affects public service delivery and worker morale,” he stated during the ceremony.

He also urged the city administration to accelerate the housing construction process and deliver the promised units swiftly.

Ms. Kidist WoldeSelassie, Head of the Housing Development Bureau, welcomed the partnership and said the city will prioritize teachers in the first phase of the program. “We’re prepared to move quickly and ensure these homes are delivered within a short time frame,” she added.