Selam Mortgage Bank, which is under formation with brand name Selam Bank, has aspired to address the growing housing demand in Ethiopia.
During the bank’s launching ceremony held on 27 May 2021, Selam Bank founding member Zemedeneh Negatu of Fairfax Africa said that the bank has the aim of creating the largest generation of home owners in the country.
As to Ato Zemedeneh, the fastest growing population and speedy urbanization are the major drivers of housing demand growth in the country.
“The housing market is among the most expensive in Ethiopia compared to other African countries. The current banking mortgage system is unaffordable and the interest rate is discouraging to buy houses,” he said.
Currently, only 3.5% of Ethiopians can afford the current banking mortgage system, according to him.
He said, therefore, Selam Bank has a plan to meet the huge housing demand in Addis Ababa and other towns through introducing new construction technologies and innovations through affordable price.
“Selam Mortgage Bank (under formation) launched in Ethiopia [on 27 May 2021]. SMB to finance 100,000 affordable mortgages totaling Birr 200 billion in the next 5 years for middle & low income borrowers & help create the largest generation of homeowners’ wealth in Ethiopia’s history,” said Ato Zemedeneh on his Twitter Account.
President Sahlework Zewde on her part said private investors should play their part in solving the housing problem in Ethiopia. The rising cost of housing is challenging the lower and middle-income earners in the country, she said.
The president further said that various platforms should be installed to address the growing housing demand.
“Selam Mortgage Bank is launched! Our aim is to create the largest generation of homeowners in Ethiopian history,” tweeted Bethlehem Tilahun Alemu, founder and executive director of soleRebels and Garden of Coffee.
Selam Bank will be the second of its kind aiming at mortgage banking in Ethiopia. Two years ago, promoters of Goh Betoch Bank, promised to introduce mortgage banking loan for housing construction, began floating shares to the public. When Goh Betoch Bank goes operational, it aims to invest one billion birr in housing development projects, according to Eshetu Fantaye who presented the prospects of the bank in June 2020.
A mortgage bank is a bank specializing in mortgage loans. It can be involved in originating or servicing mortgage loans, or both. The banks loan their own capital to borrowers and either collect payments in installments along with a certain rate of interest or sell their loans in the secondary market.
Sources: Ethiopian Press Agency/ Semonegna.com
እጅግ ደስ ይላል፡፡ የኮንስትራክሽንና ቢዝነስ ባንክ ሲፈርስ በጣም ተሰምቶኝ ነበር፤ ምክንያቱም በልጅነቴ እጄን ተይዤ የገባሁበት ባንክ ስለነበርና አሁን ባንከር ሆኜም ሳዉቀዉ ጥሩ አስተዳደር ቢኖረዉ ብዙ ሊሰራ የሚችል ባንክ ስለነበርና የቤቶች ፋይናንሲንግ ያለ አግባብ ወደ ንግድ ባንክ መዞሩ አግባብም ነዉ ብዬ ስለማላስብ ተሰምቶኝ ነበር፡፡ አሁን ያንን ጉድለት የሚተካ ባንክ በመፈጠሩ ደስ ብሎኛል፡፡ ያሉት ባንኮች Hard Banking system ስለሚከተሉ እሱንም ይቀይራል ብዬ አምናለዉና በርቱ፡፡
”Smart working is highly better than hard working”
It is nice news! still I’m not sure that low income individuals can be benefited from this banking system due various reasons for example management system should be smart, government should take part in encouraging such companies to help citizens without homes,and also the bank should deal with government and private organizations to include monthly salary holders,
Great start! I am happy to see this kinds of idea from our own people.
God bless our people!
በጣም ደስ የሚል ሀሳብ ነው ።
Das ist wirklich gut job so muss man für unsere Land gutes tun
Kebedeenu@aol.com
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thanks you!!
ስላም እንዴት ናችሁ ስለ ስላም ባንክ ebc ላይ ስምቻለሁ በጣም ደስ ይላል ሀሳባችሁ የኔ ጥያቄ በቤት ላይ እንቨስት ማድረግ ፈልጋለሁ ወይም መቆጠብ እንዴት ነው ማድረግ ያለብኝ እኔ ምኖረው ካልፍርኒያ ነው የግድ ኢትዮጵያ መምጣት አለብኝ ወይስ እዚሁ ሆኜ መጨረስ ችላለሁ አሜሪካ ውስጥ ቅርንጫፍ መስሪያ ቤት ካላችሁ ስልክና አድራሻ ብትስጡን ጥሩ ነው እናንተም መጥታችሁ ለኢትዮጵያውያን ሀሳባችሁን ብትገልጽ መልካም ነው አመስግናለሁ መልስ እጥብቃለሁ
Hello Edoardo,
Thank you for contacting us. We (Semonegna.com) is a news and information website. We do not have any contact with newly formed company Selam Bank. We believe that they will release their website and contact information. We advise you to make a follow up on them. Good luck.
Team Semonegna.com
Hello following Ethiopians my name is abebe and I live in USA newyork just I saw and listen about “Selam bank” so I need to ask two question first the phone number and second do I can buy share ? Please answer this question
Hello Abebe,
Thank you for contacting us. To answer your questions, Selam Bank is still under formation – which means it just got “green light” to move forward (such as selling shares). So far, the bank didn’t start selling shares. It didn’t still have contacts (such as email, phone etc.). Whenever we get such information, we will update this post. Also, for further information you may contact Bethlehem Alemu (founder of SoleRebels), one of the main founders of the bank. Good luck.