By Mohamed Abdi - Reporter
ADDIS ABABA (Dawan) – September 6, 2026 Ethiopia is planning to build 1.5 million affordable homes as part of a broader initiative aimed at expanding housing finance and addressing the country’s housing needs, according to the Ethiopian News Agency (ENA).The National Bank of Ethiopia and the International Finance Corporation (IFC) signed an agreement on Thursday to establish Ethiopia’s first dedicated mortgage refinancing institution.
Prime Minister Abiy Ahmed said the new institution would be established with 100 billion Ethiopian birr, equivalent to approximately $616 million, while the IFC would contribute $200 million to the initiative.
The institution is expected to provide banks with access to long-term financing, allowing them to expand mortgage lending and make housing finance available to more people.
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The Ethiopian government said the initiative is part of a wider plan to deliver 1.5 million affordable homes while increasing private-sector participation in the country’s housing finance system.Abiy described the initiative as part of broader efforts to build a rapidly growing, resilient and inclusive economy.
However, the government has not announced a timeline for completing the housing target. The success of the plan will depend on whether the new financing system can translate into affordable housing opportunities for Ethiopian families.