Housing Finance in Ethiopia

Overview

This profile is also available in French here.

To download a pdf version of the full 2021 Ethiopia country profile, click here.

Ethiopia is urbanising rapidly, although it is still a mainly rural country. The country’s urban population is increasing by 4.7 % a year, with 21.6 % of the population classified as urban in 2020. The demands of this growth have not been matched by access to jobs, services, and housing. The civil war has particularly created a dire humanitarian situation.

Ethiopia is a low-income country, averaging 9.4% economic growth a year from 2010/11 to 2019/20. However, more recently due to the war in the Tigray region and the effects of COVID-19, the country’s real gross domestic product (GDP) growth is expected to drop to 2% in 2021. The impact of COVID-19 on economic activity has been marked, with noteworthy effects on employment and an estimated 20% of job losses in urban areas.

The Ethiopian government is involved in ambitious projects with high public fiscal investment, and financing through credit. This has had a downside, however, and the 2020 fiscal year saw the country’s public deficit expected to widen to 2.7% in 2021. Given the evident limitations of these state-driven programs, efforts are being made at a national level to extend private sector engagement and boost competitiveness.

Find out more information on the housing finance sector of Ethiopia, including key stakeholders, important policies, and housing affordability:


Each year, CAHF publishes its Housing Finance in Africa Yearbook. The profile above is from the 2021 edition, which has up-to-date profiles for 55 African countries.

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