The International Finance Corporation (IFC) has committed to do more to develop the property sector, both to provide new and affordable housing and to encourage an industry that requires significant building materials and has the potential to be a major employer.
The IFC and Chinese multinational construction and engineering company, CITIC Construction, previously launched a $300m investment platform, CITICC (Africa) Holding Limited, to develop affordable housing in multiple African countries. The CITICC will partner with local housing developers and provide long-term capital to develop 30 000 homes over the next five years. IFC estimates that each housing unit will create five full-time jobs – resulting in nearly 150 000 new jobs on the continent.
Kenya and Nigeria are high on the priority list for the new effort. Kenya’s housing shortage is estimated at 2 million units, while Nigeria is in want of 17 million units. Africa’s housing market has few local developers with the technical and financial strength to make up the short-fall of units.
The IFC-CITIC Construction platform will work with local housing companies to develop affordable housing projects across Sub-Saharan Africa, each ranging in size from 2 000 to 8 000 units.The platform will start by developing affordable housing in Kenya, Rwanda and Nigeria, expanding to other countries as operations ramp up.
With the realisation that the government needs to work in conjunction with the private sector to serve the objectives of the continents housing development, Open Africa is proud to host the Affordable Housing Round Table Discussion in Kenya, on the 30th of April 2019. This round table aims to host industry decision-makers and head of governance within the housing sector to dissect and find solutions to the implementation of the set goals. Some of the subjects to be discussed include:
- Reducing the cost of mortgages to homeowners
- Raising low-cost funds in both private and public, for investment in large-scale house construction
- Cutting the cost of construction through the use of innovative techniques & materials
- How Africa can learn from best practice elsewhere in the world
- Building up resource base to ensure delivery of projects and how cities can become inclusive, safe, resilient and sustainable