Africa needs more than Sh100 trillion in funding to be able to effectively address the growing housing crisis, Pan African housing development financier, Shelter Afrique has said.
Shelter Afrique Chief Executive Officer Andrew Chimphondah was speaking in Nairobi after the Company signed a Memorandum of Understanding (MOU) with Habitat for Humanity International (HFHI), which will see HFHI assist Shelter Afrique in mobilising capital for affordable housing.
“Research from our Centre of Excellence (CoE) shows that the overall shortage of housing in Africa is estimated now to be 56 million housing units. Out of this, more than 90 per cent (or 45 million units) are in the affordable housing bracket. This means that for Africa to fully address the issue of the affordable housing shortage, at an average construction cost of USD 25,000 per unit, the continent requires at least USD 1.4 trillion excluding the cost of the bulk infrastructure; and we believe that this is substantial,” Mr Chimphondah said.
Mr Chimphondah said the majority of African countries were already facing housing crisis as a result of high population growth, increased urbanization, poor urban planning, dysfunctional land markets, rising construction costs, the proliferation of informal settlements, and underdeveloped financial systems.
Countries with growing housing deficit include Nigeria with a deficit of 22 million housing units; Tanzania and Democratic Republic of Congo with a deficit of 3 million units; and Kenya, South Africa and Madagascar with deficits of more than 2 million or more.
“For instance, with a deficit of over 2 million housing units, Kenya needs in excess of Sh5 trillion to adequately address the issue of affordable housing. This requires focused political leadership and we are encouraged by the efforts the Government of Kenya through the inclusion of Affordable Housing as a key priority in implementing the BIG 4 Agenda on the supply side, and the establishment of the Kenya Mortgage Refinancing Company to improve access to mortgage lending on the demand side,” Mr. Chimphondah said.
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