Prime Minister Abiy Ahmed (Ph.D.) announced his intention to open the finance sector to foreign investors that is willing to open a mortgage bank in Ethiopia.
The move is a huge departure for the finance sector that is still closed to foreign competition.
“The banking sector must be liberalized at some point. And now if there is any foreign bank willing to provide mortgage banking service, it should be allowed to invest in the country, because the housing demand is critical,” he said.
Currently, Ethiopia has no mortgage bank. Construction and Business Bank, the last mortgage bank in Ethiopia, was acquired by the Commercial Bank of Ethiopia in 2017.
Three private mortgage banks are now under establishment.