The pan-African finance financier that exclusively supports the development of the housing and real estate sector in Africa, Shelter Afrique has said urge governments to establish a housing microfinance fund improve access to housing finance by those in the lower end of the market.
Speaking at the Affordable Housing Investment Summit in Nairobi, Shelter Afrique’s Chief Executive Officer Andrew Chimphondah said most policies had an exclusive urban focus and non-consideration of the low-income groups and the rural areas. Mr. Chimphondah added that the establishment of such a fund would make it easier facilitate efficient and inclusive housing market systems and make affordable housing a reality across Africa.
In addition, Shelter Afrique’s Chairman Daniel Nghidinua said that with the right enabling policies and by following coordinated and inclusive approach, African countries have and can mobilize requisite capacities and resources to tackle the shortage of affordable housing.
Mr. Chimphondah further noted that in sub-Saharan Africa, majority have very limited access to long-term financing for housing, which is almost invariably limited to commercial banks offering formal, multi-year mortgages.He reiterated that there is an urgent need to expand mortgage finance option, designing appropriate mortgage finance products, and enhancing access to capital markets.
It was realized that majority of African countries were facing housing crisis and that the continent housing industry required at least minimum of USD 2.5bn in new investment annually for any meaningful impact.
According to a recent report, more than 60% of sub-Saharan African currently lives in Slums as many people have very limited access to long-term financing for housing in sub-Saharan Africa.