CBE Announces Plan to Provide 120 Billion Birr Housing Finance for Gov’t Employees in Addis Ababa

Mortgage arrangement for Addis Ababa Housing Project with state owned CBE for public servants came as fears of strike in Ethiopia is rising

Getahun Tsegaye
Staff Reporter 

Addis Ababa, Ethiopia – The Addis Ababa City Administration and the Commercial Bank of Ethiopia (CBE) have signed a major agreement to launch a new housing development project aimed at providing homes for 41,000 government employees. 

The scheme, operating under a 25/75 financing arrangement, is said to prioritize public school teachers — but reactions on the ground have been mixed, as long standing frustrations over previous housing programs resurface.

According to the agreement, beneficiaries will cover 25% of the home price as a down payment, with the remaining 75% financed through a 20-year loan from the Commercial Bank of Ethiopia. The bank’s president, Abe Sano, confirmed that 120 billion birr has been allocated for the project, which will charge a 14% interest rate. “This initiative is meant to ease the housing crisis for public servants, especially those without any property,” he stated.

The head of the Addis Ababa Housing Development Administration Bureau, Kedist Wolde Giorgis, emphasized that the new project is part of a broader plan to ease housing shortages for civil servants. She reiterated that teachers would be given priority.

However, the announcement has stirred frustration among residents who have been waiting for years under the older 20/80 housing scheme, which required a 20% down payment and promised affordable government-subsidized housing. That program has faced delays, unmet expectations, and in some cases, outright cancellations. Many of the applicants feel left behind.

Estifanos, a 20/80 housing applicant since 2014, expressed disillusionment: “I’m happy that teachers and public employees might benefit, but I’ve been depositing money every single month for over ten years. Still, I have no house. We’ve asked the housing corporation to explain the delay, but they never give us clear answers.”

For many prospective beneficiaries, even the new opportunity appears out of reach.

Ahmed (name changed), a senior high school teacher in Addis Ababa, told Borkena that his net monthly salary is around 6,500 Ethiopian Birr (approximately $48). “The government gives me a 3,000 birr ($22) monthly housing allowance, which helps a bit,” he said. “But saving up 25% for a house and then paying off the rest at 14% interest over 20 years? That’s impossible unless our salaries increase dramatically — and fast.”

Another teacher, who requested anonymity, agreed. “Of course, the plan sounds good on paper, but the reality is far from it,” he said. “The government knows teachers have been demanding salary increases recently. I suspect this is a tactic to shift our attention.”

Despite skepticism, some teachers say they will still register for the program — hoping that somehow the promise will become reality. “I’ll take the risk,” the anonymous teacher added. “But I’m not convinced it’ll work out.”

The program is expected to break ground soon, with construction planned over a three-year period. A one-year grace period will apply before loan repayments begin. For many, though, the question remains whether this new housing initiative will be any more successful — or fair — than the one before it.

Background

In July 2022, the Addis Ababa City Administration annulled a public housing lottery under the 20/80 and 40/60 condominium schemes after an investigation exposed widespread irregularities. The probe, led by INSA and NISS, revealed  that thousands of unqualified names were fraudulently added through tech tampering. Ten officials were detained, and Mayor Adanech Abiebie called the breach an act of “technological thuggery” aimed at both property theft and political manipulation. 

Since then, the housing distribution has been put on hold, and the public continues to await a response from the city administration.

The announcement came at a time when health professionals across the country are on strike over poor living condition and not livable salary.

Edited by Dimetros Birku

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