Goh Betoch Bank (GBB), the sole mortgage bank, has teamed up with Global Trade and Finance Inc. (GT-Finance), a US-based consulting firm that provides venture finance assistance, to seek help for one of its core business endeavors.

The bank, which has been in operation for over three years, has been evaluating whether to collaborate with foreign parties in order to meet Ethiopia’s rising housing demand.

According to the most recent deal signed by the bank with GT-Finance, the worldwide company, which collaborates with reputable businesses and governments across the globe, will provide the bank with technical and financial assistance.

The two parties will collaborate on project finance, technology supply for housing construction, venture capital investment, and knowledge transfer, according to Eskinder Dibekule, Chief Operating Officer (COO) of GBB.

The COO stated, “The partnership will allow the bank to accelerate its mortgage business.”

Recalling that despite Ethiopia’s high demand for housing, obtaining mortgage financing presents a number of obstacles, he said, “Our bank has proposed several solutions, including drawing on experiences from other countries, to the government, including the National Bank of Ethiopia (NBE),” in an effort to “alleviate the problem.”

According to him, the bank is operating by combining its operations with other commercial banking services because the NBE does not have specific regulations for mortgage banks or specialist financing businesses.

“Long-term funding, access to affordable land, proper real estate laws, and access to construction materials are vital to easing the severe housing challenge faced by urban dwellers,” he added, mentioning that numerous legal supports from authorities are likely to boost the mortgage industry.

He emphasized that in order to make financing accessible for the housing industry, a reasonable interest rate is essential.

Because the ecosystem needs to function as a whole, mortgage banks cannot operate alone.

Accordingly, Eskinder said, “We have proposed to the relevant government authorities the establishment of a housing fund to mobilize long-term funding, based on the experience of Nigeria.”

Obtaining long-term funding from overseas is an additional option.

As a mortgage bank, the leadership has made many attempts to seek overseas funding and technological expertise.

The senior banker told Capital, “As part of that effort, we have now partnered with GT-Finance, a finance and project consultancy company that works in technology, health, finance, and project.”

In terms of finance and consulting, they collaborate with many businesses and organizations to support venture capital and funding.

The COO claims that they are aware of Ethiopia’s circumstances and are eager to participate in the Ethiopian market.

“We, along with the government, expect a favorable environment. If they provide project financing and venture capital, it will address the long-term funding issue,” he stated.

He added that Goh Property and Marketing, a subsidiary of GBB, had been established to build and provide affordable homes, but that “our concept cannot be fulfilled by the subsidiary alone, as others must play their role.”

Another strategy the bank is working on is collaborating with developers to offer affordable housing to the general public, and the bank will provide complete assistance to developers, including project management and advisory services, in addition to funding, to ensure projects are completed on schedule.

The COO stated, “At this time, we are working with developers, and some of the negotiations have been completed.”