ADDIS ABEBA – A private mortgage bank, Goh Betoch, is at the final stage of joining Ethiopia’s banking sector as its organizes officially start selling shares on Thursday.
Goh Betoch Bank Share Company, set up by former top bank officials, has begun selling shares on Thursday in an event held at the Skylight Hotel.
The banking sector reportedly allocates only 10 percent of its overall credit services to the growing construction sector. The organizers and officials in charge of construction believe the bank, under formation, will be vital in filling this financing gap in the area.
The bank plans to serve businesses and individuals to engage in construction, repair and improve their residential houses.
“I hope it will contribute a lot to the development of the real estate as well as construction sectors,” said Aisha Mohammed, minister of Construction and Urban Development, at the launching event the bank.
Aisha said the fasts growing economy is resulting in increasing urbanization “which has given a rise to housing demand”.
The share company is formed by prominent personalities in the banking sector including the Getahun Nana, former Vice Governor of the National Bank of Ethiopia.
Goh becomes the first local bank after the Housing and Saving Bank (HSB) that was formed by the merger of Imperial Savings and Home Ownership which latter become the defunct Construction Bank.
“The idea to launch the bank emanates from the growing demand in the housing sector,” said Getahun Nana, chairman of Goh Betoch Share Company.
Getahun said, “Our job is only to avail finance to those who have the interest to buy and or renovate their houses”.
The share company is will offer service for low, middle and high-class customers, said Getahun.
The bank has already received approval from the central bank to pilot the service. Officials of the bank say the minimum share that can be bought would be 50 shares worth 50,000 Birr. The maximum share ownership could be achieved with 5 percent or 50 million Birr based on is the central bank rule.
By Mhret G/Kristos
Photo Caption: chairperson of Goh Betoch Bank Share Company Getahun Nana [File]