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Ethiopian Investment Holdings (EIH) has launched a review of the Federal Housing Corporation (FHC), following a year of record-breaking results and renewed ambitions for the state-owned enterprise. In the past fiscal year, the FHC achieved 9.34 billion birr in revenue, which is 155% of its provisional annual target—a remarkable over-performance that underscores the growing role of housing and property management in Ethiopia’s public sector economy.
Operationally, the corporation also exceeded key benchmarks:
- Housing allocation: Achieved 101% of its target, ensuring more Ethiopians gained access to public housing.
- Maintenance services: Reached 99% of its planned works, reflecting progress in improving the livability of existing units.
- Construction materials production: Expanded its role in local supply chains by manufacturing materials for infrastructure and housing projects.
On the foreign currency front, FHC generated USD 1.36 million in income, representing a 30% increase compared to last year—an important contribution at a time when Ethiopia faces ongoing forex shortages.
Focus on Modernizing Asset Management
Looking ahead, the Corporation is prioritizing modernization of its property and asset management systems. Among the strategic actions under consideration are:
- Stronger rental leasing agreements to enhance transparency and improve revenue collection.
- Upgraded contract administration to reduce inefficiencies and enforce compliance.
- Targeted marketing strategies to raise visibility and attract new tenants or investors.
- Project finance opportunities to mobilize capital for large-scale development.
By improving management practices, FHC aims to not only boost revenue but also extend the lifespan and value of its housing stock.
Strategic Outlook: Feasibility and Expansion
EIH’s review highlights that the next phase will depend on feasibility studies to identify investment opportunities and optimize the Corporation’s real estate portfolio. These studies are expected to guide long-term planning, enabling FHC to adapt to Ethiopia’s fast-changing urbanization trends and housing demand.
The renewed focus comes at a critical juncture. As Ethiopia pushes forward with its economic reform agenda, the housing sector is emerging as both a social necessity and a financial engine. FHC’s performance suggests that with strategic reforms, the Corporation could transform into a key player in easing urban housing shortages while generating sustainable public revenue.
