The Commercial Bank of Ethiopia, Ethiopia’s largest state-owned bank, has approved a 27.8 billion birr financing package to support a large-scale staff housing project for Ethiopian Airlines Group, expanding the airline’s efforts to ease housing pressures on its workforce.

The loan will fund the construction of residential units for five thousand employees and represents a financing agreement between two of the country’s most significant public enterprises.

The Commercial Bank of Ethiopia and Ethiopian Airlines Group formalised the arrangement on December 24 at the bank’s headquarters in Addis Ababa. The agreement was signed by Efrem Mekuria, acting president of the bank and executive vice-president for corporate banking, and Mesfin Tasew, chief executive officer of the airline.

Bank officials said the financing aligns with efforts to broaden credit provision beyond commercial projects to include initiatives with social and workforce dimensions. Efrem said the bank continues to expand its lending operations to respond to the financing needs of different sectors of the economy.

Ethiopian Airlines said the funding would allow it to proceed with planned housing construction for staff, a project supported by the airline’s management, employees and labour union. Mesfin said the airline values its long-standing relationship with the Commercial Bank of Ethiopia and expects the project to improve employee welfare.