Ovid Betoch Bank aims to raise Birr five billion within six months to meet the growing demand in the mortgage market.
The bank is actively selling shares to gather the necessary funds and transition into a housing finance company. Its prospectus highlights the need for greater focus on the housing and construction sectors and calls for government intervention to modernize the industry and prevent a shortage of residential housing.
The bank's prospectus emphasizes the lack of attention from existing banks toward the construction sector, particularly residential development. It aims to mobilize the necessary investment within six months to kickstart its operations and play a crucial role in meeting the government's target for residential home expansion. With the prospectus outlining the offering of shares and the minimum purchase requirements, Ovid Betoch Bank is actively seeking investors who are willing to support its vision of providing homeownership opportunities and driving the progress of the housing finance industry in Ethiopia.
The government aims to double the number of residential homes in the next decade, and Ovid Betoch Bank aims to contribute to these efforts by providing potential shareholders with opportunities for homeownership. Currently, Goh Betoch Bank is the only mortgage company in Ethiopia, but further policy support from the government is sought for the industry's success. Despite being the second most populated country in Africa, Ethiopia's low urbanization rate presents significant growth opportunities for the housing finance sector.
Source (including image): Capital Ethiopia