UN Habitat expects 50 per cent of Sub-Saharan Africa to be living in towns and cities by 2030, and World Bank data shows that the region’s economic growth has been significantly higher than the world average for the last 10 years. Yet despite this economic growth, the housing situation in many African countries has rapidly deteriorated. There is a huge shortage of housing, in terms of both quantity and quality, contributing to a proliferation of slums and informal dwellings. The Centre for Affordable Housing Finance in Africa (CAHF) estimates for example the current housing shortage in Nigeria at 17 million units requiring funding of US$363 billion. In Ghana, the shortage is estimated at 1.7 million units with the funding requirement ranging from US$51.8 billion and US$52.5 billion. In Kenya the shortage is estimated at 2 million units per year.
The importance of Housing finance in the housing delivery value chain is critical. Indeed, finance is needed for both the demand and the supply of housing. On the demand side, the availability of and access to housing finance is a significant determinant in a household’s decision to acquire, build, or rent a house. Similarly, on the supply side, developers need financing to build the mass housing projects that are needed to address the continent’s housing deficit. Housing finance, being an essential part of financial systems, also contributes to the development and deepening of financial markets and the financial sector as a whole. A number of countries have successfully developed capital markets with significant volumes coming from the refinancing of mortgage debt. However, the development of housing finance on the continent has not kept pace with the backlog in housing demand.
NEWS & EVENTS
We are a multi-donor initiative with a strong partnership and collaborative mindset. We work with a variety of local, regional, and international institutions, both public and private, in order to achieve our mission to develop the African financial systems. Below is a summary of the institutions we work with to support the development of Housing Finance in Africa.