Real estate developers have got a timely shot in the arm following a $10m (about Rwf6.8b) line of credit secured by Development Bank of Rwanda to finance affordable housing projects in the country.

The funds from Shelter Afrique, a Pan-African finance institution, are a timely intervention in solving the prevalent housing problems in Rwanda, especially with policy-makers urging the government to support affordable housing initiatives to help middle-and low income earners own homes.

Alex Kanyankole, the Development Bank of Rwanda (BRD) chief executive officer, said the loan will enhance the bank’s goal of bridging the sector’s unmet financing needs and reduce the big housing deficit the country faces. 

"We are committed to supporting investments in the housing sector to ensure availability of decent and affordable housing options for every Rwandan,” he said during the signing ceremony on Thursday.

Kanyankole pointed out that the bank would also identify and appraise individual mortgages, as well as local housing developers, under the deal.

"We expect at least 1,000 households to acquire their first homes with this line of credit. This will pave the way for us to mobilise more resources to support the real estate sector. The funding to BRD will impact positively on the whole economy and create more jobs in the construction sector,” said Alassane Ba, the Shelter Afrique managing director.

Over the past years, BRD has prioritised financing investments in the real estate sector; availing products like ‘Gir’Icumbi’ aimed at enabling more Rwandans to afford decent housing.

Kanyankole revealed that real estate industry and banks were designing a policy, together with the ministry of infrastructure, to adopt new technologies for the housing sector.

A housing market study conducted last year by the City of Kigali indicated that the city housing demand is around 31,000 units a year compared to around 1,000 units supplied per year.

"The Kigali Housing Market–Investor Brochure,” report estimated that between 2013 and 2018, about 17,280 units will be built, which represents an average of 1,234 units per year.

ben.gasore@newtimes.co.rw