Dangiwa voices concern over housing affordability crisis in Africa, wants urgent solution
By Abdullahi Yusuf
The Minister of Housing and Urban Development, Arc.Ahmed Musa Dangiwa, has expressed concern over the housing affordability crisis in Africa, expressing urgent need to address the problem.
Dangiwa made the remark in an opening remark he delivered at the Ministerial Roundtable on “Innovative Financing for Housing Affordability,” held during the SHAFDB Annual General Meeting at the Marriott Hotel in Kigali, Rwanda,on June 12,2024.
This is contained in a statement issued to newsmen by the SSA Media to the Minister of State for Housing and Development, Malam Adamu Abdullahi.
Abdullahi quoted the minister as saying that severe housing affordability crisis is affecting over 80 percent of Africa’s population and is driven by low incomes, challenging macroeconomic conditions and rising living costs.
With each year passing by, the minister said,the affordability bar keeps getting higher, emphasizing the urgent need for affordable housing solutions.
The key initiatives,he said,include:”Interest-Free Budgetary Allocations: Utilizing budgetary allocations for housing without interest to lower costs.”
Others, Dangiwa said,are:”Sub-National Government Partnerships: Engaging state governments to provide land free-of-charge, reducing the overall cost of housing units by up to 40 percent;
“Public-Private Partnerships (PPP): Facilitating collaborations with developers under the Renewed Hope Cities and Estates Programme to deliver affordable housing units, with a portion sold at subsidized rates.
“Real Estate Investment Trust (REIT): Working with various agencies to create a N1 trillion concessional financing window to provide low-cost funds for developers, aiming to expand the scale of housing delivery.”
Arc Dangiwa also emphasized the importance of adopting new financial instruments and mechanisms tailored to Africa’s unique contexts, such as microfinance, mortgage-backed securities, and digital financial services.
“Traditional financing models have served us to a point. To bridge the housing deficit, we must explore and embrace new financial instruments and mechanisms,” he said.
The Minister then highlighted the significance of the Shelter Afrique Housing Solutions Fund, a 100 billion Naira real estate investment trust aimed at catalyzing investments in affordable housing through innovative market-based solutions.
He called for collaborative efforts among all stakeholders, including governments, financial institutions, developers, community organizations, and international partners.
“Our goal should be to create a housing finance ecosystem that leaves no one behind,” he said.
“Let us challenge conventional wisdom, explore uncharted territories and forge new pathways to make affordable housing a reality for all Africans,”Dangiwa added.
