Goh Mortgage Bank Share Company, the first mortgage financial firm, has planned to disburse a loan amounting 1 billion Birr in 2021/22 fiscal year.
The bank has set a goal to collect 1.3 billion Birr saving in the fiscal year.
Goh Mortgage Bank also sees opening 60 branches across Ethiopia in five years, according to Mulugeta Asmare, CEO of the Bank. Having 6,658 shareholders, Goh has raised a subscribed capital of 1.1 billion Birr and 521.5 million Birr paid up capital.
In six and half years, the Bank aims to boost its paid up capital to 5 billion Birr.
In the meantime, Goh has officially started providing its services on Monday at his headquarters—Abderuf Building around Bole.
With a business motto of “Generation’s Bank”, Goh asserted that shortage of mortgage banks has exacerbated lack of residential homes in Addis Abeba.
Besides the mortgages, Goh provide commercial banking services such as granting short and long term loans.
Adanech Abiebie, Mayor of Addis Abeba in her address during the official service inauguration of Goh said: “The provision of services by the Bank will have a mammoth contribution to solve shortage of housing in Addis”.
To solve the housing predicament, involvement of the government will not be sufficient, says Adanech. “Participation of Goh and other mortgage Banks is mandatory.”
She also called for a collaboration of all to achieve the targets by Goh “The City Administration of Addis Abeba will provide its support to Goh,” she pledged.
Mulugeta also shares Adanech’s concern. “Absence of specialized banks which serves unique economic demands is challenging the sector,” he said.
He hopes the establishment of Goh will change the situation for good.
The mortgage bank that received its license from the National Bank of Ethiopia (NBE), the financial sector supervisory body, in August is expected to be an alternative source of finance for housing scheme, which usually access less than 10 percent from the total fresh loans in the financial industry.