Inadequate funding is a major impediment to addressing a major housing deficit currently facing Africa, a top official from Pan-African residential development financier Shelter Afrique has said.
Chief executive officer Andrew Chimphondah says that availability of funds would make it easier to facilitate efficient and inclusive housing market systems with the main objective of making affordable housing a reality across Africa, more so within the lower end of the housing market.
Low mortgage uptake
“Research on housing finance options for Africa conducted by our Centre of Excellence has shown that the penetration of housing mortgage throughout Africa is quite low,” says Mr Chimphondah.
He continues,”it means that mortgage might not be the right option for low-middle income population.”
He was speaking in Nairobi after the Company signed a Memorandum of Understanding with Habitat for Humanity International (HFHI), which will see HFHI assist Shelter Afrique in mobilizing capital for affordable housing.
On her part, Habitat for Humanity International Capital Markets & Financial Inclusion Ms. Elena Milanovska noted that her company had invested more than USD 4 million in Africa from the micro-build fund, adding that the partnership with Shelter Afrique will make it easy for the organization to significantly increase its investment in Africa.
Shortage of Affordable housing
“There is shortage of affordable housing and there is also substandard housing. Habitat for Humanity International is excited to sign this partnership deal with Shelter Afrique as we see a lot of potential in addressing the growing deficit in the provision of affordable housing in Africa. ” said Ms Milanovska.
Ms. Milanovska said the partnership with Shelter Afrique was a perfect match, adding that Habitat for Humanity International had established USD100million micro-build fund that supplies debt capital and technical expertise to help microfinance institutions increase the availability of housing loan products for their low-income customers.