ADDIS ABABA – Addis Ababa City Administration will increase its support to real estate developers, says deputy mayor, as government eyes more private sector engagement to address housing challenge in the capital.
Adanech Abiebie, Deputy Mayor of the city, made the pledge a day after the state-run, Commercial Bank of Ethiopia (CBE), agreed to work together with Gojo Bridge Housing Trading Plc to address increasing house deamnds of residents.
The housing challenge in the city needs engagement of the private sector in addition to government’s efforts , according to Deputy Mayor Adanech.
The city will provide any necessary support including allotment of land to those are interested to invest in housing sector, vowed the Deputy Mayor.
The City Administration has availed thousands of hectares of land for developers and companies that showed interest to take part in the sector, she said during a program that saw the inauguration housing project carried out by a private firm called Tracon Trading.
The company, which is currently engaged in various businesses including manufacturing and Real-estate development, inaugurated the 624 units of houses with an outlay of 2.6bln Birr.
Source of finances and securing land are among the major challenges residents face when trying to build house. Commercial Bank of Ethiopia has working experience with various entities to meet the housing demands of citizens, according to Officials of the state-run bank.
“Today, we have also agreed to work with Gojo Bridge Housing, which came up with different ideas and options, to address housing challenges” said Tedros Tadesse, Director of Megenagna District at CBE.
The memorandum of understanding signed with Gojo Bridge Housing Trading Plc, will task CBE in the financial aspect of the project.
Accordingly, the bank will register people who want to purchase houses, collect payments and carry out other financial related works in collaboration with Gojo Bridge Housing.
Tiratu Beyene, General Manager of the city administration with the rank of deputy mayor, commended CBE’s move to supporting Gojo Bridge Housing’s project as it brought about a new idea to meet the housing demands of residents.
The company is currently preparing to build about 1,000 houses at four sites in Addis Ababa city. Its plan is to build 100,000 houses over the coming five years, as per Almaw Gari, Chief Executive Officer (CEO) of Gojo Bridge Housing.
People who want to build their houses are required to form association and save registration fee of 350,000 birr in a blocked account at the CBE, the company said.