While financial institutions provide the needed funding, private developers should participate in developing affordable housing projects to create sustainable housing solutions, Prime Minister Edouard Ngirente said on Tuesday, June 11. ALSO READ: Real estate: 7 bottlenecks derailing affordable housing efforts in Rwanda He made the remarks during the opening of the 43rd Annual General Meeting and Symposium of Shelter Afrique Development Bank, in Kigali. The three-day meeting brings together key stakeholders from across the continent to discuss and explore sustainable partnerships in the affordable housing finance value chain. Africa is facing rapid urbanization as cities grow to become hubs of economic activity, cultural exchange, and innovation. However, one key concern that comes with this growth is the critical need for affordable housing. By 2050, Africa’s population is projected to double, with two-thirds of this growth occurring in urban areas, and Eastern Africa, in particular, is experiencing the world’s fastest urbanization rate, averaging annual growth rates of 4.5 percent. ALSO READ: Authorities mull revised affordable housing subsidy strategy The persistent concern, leaders say, is the increasing informal housing in urban areas. Available data indicate that over one billion people reside in unplanned settlements, and Africa accounts for nearly 25 percent of this proportion. Ngirente said that to address the challenge, it is important to focus on housing finance and its impact on the entire housing value chain, with priority being to respond to the challenges from both the supply and demand sides of housing finance. “On the supply side, housing suppliers face obstacles in accessing affordable construction financing. Meanwhile, on the demand side, although financial inclusion is improving, many households still struggle to access standard housing finance products.” He noted that the country has invested efforts in driving affordable housing based on the National Land Use and Development Master Plan to guide the balanced, integrated, and efficient use of land across Rwanda. “By aligning land use with our development goals, the master plan sets the stage for vibrant, and well-planned communities.” By mid-century, it is projected that Rwanda will host a population of 22.1 million, growing steadily at a rate of two percent. the master plan estimates that the country will require 5.5 million dwelling units and intends to build an average of 15,000 new units annually from 2020 to 2025. ALSO READ: Projects in pipeline to build 15,000 affordable houses within six years Meeting these evolving housing needs, Ngirente said, requires public-private partnerships and engaging private developers that play a key role in constructing affordable homes, while financial institutions provide necessary and needed funding. “We believe that by optimizing this partnership and effective collaboration, we can create sustainable housing solutions. Therefore, we would like to encourage developers to participate in affordable housing projects.” He noted that the government provides incentives to attract investors in the sector. Incentives offered include water, electricity, and other infrastructure needed on the site. Chi Patience Akiporji, the Chairperson of Shelter Afrique, commended Rwanda’s journey in promoting affordable housing through various interventions cemented by public-private partnerships. According to her, the high interest rate regimes in Africa are drawing down on private developers in real estate and the regulatory environment needs to be availed to incentivize growth in the housing sector.
