Ronald Njoroge NAIROBI (Xinhua) -- Africa
needs more than 1.4 trillion U.S. dollars funding to
effectively address the affordable housing deficit,
a pan-African housing development financier said
here on Tuesday.
The majority of African
countries are facing a housing crisis as a result of
high population growth, increased urbanization, poor
urban planning, dysfunctional land markets, rising
construction costs, proliferation of informal
settlements, and underdeveloped financial systems,
said Andrew Chimphondah, managing director and chief
executive officer of Shelter Afrique.
The firm’s research showed that the overall
shortage of housing in Africa is estimated to be 56
million housing units.
Out of this, he said, more than 90 percent, or 45
million units, are in the affordable housing
"This means that for Africa to fully address the
issue of affordable housing shortage, at an average
construction cost of 25,000 U.S. dollars per unit,
the continent requires at least 1.4 trillion dollars
excluding the cost of the bulk infrastructure,"
He spoke in Nairobi when Shelter Afrique signed a
memorandum of understanding (MoU) with Habitat for
Humanity International (HFHI), which will see HFHI
assist Shelter Afrique in mobilizing capital for
Chimphondah said that countries with growing
housing deficit include Nigeria with a deficit of 22
million housing units, Tanzania and Democratic
Republic of Congo with a deficit of three million
units, and Kenya, South Africa and Madagascar with a
deficit of more than two million or more.
He said with a deficit of over two million
housing units, Kenya needs in excess of 50 billion
U.S. dollars to adequately address the issue of
"This requires focused political leadership and
we are encouraged by the efforts the government of
Kenya through the inclusion of affordable housing as
a key priority in implementing the Big 4 Agenda on
the supply side, and the establishment of the Kenya
Mortgage Refinancing Company to improve access to
mortgage lending on the demand side," Chimphondah
He observed that the continent will require even
more financial resources as individual countries
continue to record rapid population growth and
higher rate of urbanization.
Chimphondah said the solution lies in a
well-coordinated and collaborative effort among all
stakeholders, including governments, multilateral
institutions, non-profit organizations, and the
private sector represented by both established
developers and financial institutions.
"If we do not intervene, we are going to see the
surge in slums and substandard dwellings across
Africa," he added.