Shelter Africa, a pan-African housing development finance company, said the majority of countries in Africa are facing a housing crisis as a result of population growth, increasing urbanization and a lack of supply of affordable housing.
Speaking in Nairobi at the launch of Caribe Homes, an affordable housing project funded by the group, Shelter Africa chairman Daniel Gidinua said the situation was exacerbated by a lack of affordable housing finance, high prices and weak rental security for urban land, rising construction costs and rapid growth of slums.
The company is now calling for stronger public-private partnerships to address the shortage.
“These high growth rates have led to a rapid increase in demand for urban infrastructure and housing in urban areas. Unfortunately, investment in urban planning and housing is often lagging, resulting in housing shortages. As a result, the surge in demand for housing drives up housing prices, often displacing quality housing for the majority, especially those in poverty, low-income and middle-income groups, from wealthier households,” Gidinua said.
Andrew Chinfonder, managing director and CEO of Shelter Afrik, said several countries on the continent were facing huge housing backlogs, adding that urgent action was needed to stem the crisis.
“It no longer matters which country you are referring to. Uganda faces an annual housing shortage of 1.6 million homes, Kenya 2 million homes, Tanzania 3 million homes, South Africa 3 million homes and Nigeria 17 million homes a year. There is a crisis everywhere and it is our duty to heed the call to action,” Chinponda said.
Gidinua noted that housing backlog is a challenge but not insurmountable, adding that Shelter Afriq is committed to providing affordable housing for everyone in Africa and the organization is keen to build smart partnerships aimed at generating growth with scale.
“We believe this challenge represents an opportunity for concerted action and investment by different governments, private companies and communities across the continent. We want to focus on the lower tiers of the affordable housing market chain so that we can address this housing crisis through smart partnerships,” Gidinua said.
In a recent report, UN-Habitat blamed Africa’s huge housing shortage on poor government response to the problem, government ignorance of housing issues, land handover systems, urban planning and poor organization of the construction sector in most African countries. The report also states that the continent needs 4 million homes a year to meet its housing needs.
Shelter Afrique is the only pan-African financial institution exclusively supporting the development of Africa’s housing and real estate sector. By meeting the needs of the continent’s rapidly growing urban population, our work has a direct and positive impact on the lives of many people.
Shelter Afriq, a partnership of 44 African governments, the African Development Bank (AfDB), and African Reinsurance Company, creates strategic partnerships and offers a number of products and related services that support the efficient delivery of affordable housing and commercial real estate.
These include project finance, institutional lending, equity investments and joint ventures, trade finance and social housing. We also provide practical advice and technical assistance to a wide range of industry stakeholders.
