Editor,

RE: "Kigali’s housing dilemma: real estate developers are the problem” (The New Times, November 2).

I want to address my comment to Mr. Ntwari. There is no such thing as a dirigisme mind-setup, wanting to tell people where to put their hard-earned coins.

If the high-end market is interesting for them than low-cost, then they know better where and why they put their money there. No one can force them. If they still do that, it means that it is profitable (as you said, they pay quickly their loans).

If they are wrong, credit on real estate will start not to perform and slowly collapse and consolidate.

It will not be interesting anymore and maybe they can look at other segments. Businesses know better what is good for them.

Gill

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I beg to disagree. Businesses do not know what is better for them. If they did, they would all be profitable and none would shut down, go bankrupt, or default on their bank loans. Modern business is a risk. Most of us are just trying our best, but it is entirely possible, and common, to make bad business decisions.

As you said, Gill, if these real estate developers are right, then they will enjoy their profits and if they are wrong, they will slowly collapse.

Mr. Ntwari has predicted that this current set up is not sustainable, and over time, will collapse. I don’t see how this is forcing them to do anything. He is simply sharing his opinion.

Moreover, his initial point was that handling the affordable housing crisis in Rwanda should not simply be left in the hands of the private sector, as they have separate interests and their own personal issues to deal with (e.g. paying off their loans).

They did not go into this business to solve Rwanda’s housing problem, but to make money, which is a perfectly valid reason to go into business.

However, the needs of everyday Rwandans are not being met as most of us cannot come close to paying those monthly rental fees $2000 to live in those laminate wood high rises. That is why the government can step in and fill that gap.

The New Times article about Ethiopia’s solution illustrated this quite well.

Akaliza Keza Gara