Le ministre Dangiwa aborde la question de l’accessibilité au logement lors de la table ronde ministérielle organisée dans le cadre de l’assemblée générale de la ShafDB à Kigali

Minister Dangiwa addresses the issue of housing accessibility during the ministerial round table organized as part of the ShafDB general assembly in Kigali

Kigali: June 12, 2024 – The Honorable Minister of Housing and Urban Development, Arc. Ahmed Musa Dangiwa highlighted the serious crisis of housing accessibility which affects more than 80% of the African population, due to low incomes, difficult macroeconomic conditions and the increase in the cost of living.

Speaking at the Ministerial Roundtable on “Innovative Financing for Affordable Housing”, organized as part of the Annual General Meeting of the Shelter Afrique Development Bank (SHAFDB) at the Marriott Hotel in Kigali, Rwanda, The minister said affordability is a moving target, posing an even greater challenge in achieving the goal of “housing for all”.

“With each passing year, the bar for affordability gets higher and higher,” he noted, emphasizing the urgent need for affordable housing solutions.

Arc Dangiwa shared his experience as Managing Director of the Federal Mortgage Bank of Nigeria (FMBN), where he oversaw the design and financing of affordable housing.

However, he pointed out that the sharp increase in the costs of building materials has made it increasingly difficult to maintain affordability, with the cost of housing units increasing significantly.

To address this crisis, Arc Dangiwa has outlined a multi-dimensional strategy that emphasizes innovative financing and collaborative efforts.

·        The main initiatives are: Interest-free budget allocations: Use interest-free housing budget allocations to reduce costs.

·        Partnerships with subnational governments: Engage state governments to provide land free of charge, thereby reducing the overall cost of housing units by up to 40%.

·        Public-Private Partnerships (PPP): Facilitate collaborations with developers under the Renewed Hope Cities and Estates program to provide affordable housing, some of which is sold at subsidized prices.

·        Real Estate Investment Trust (REIT): Working with various agencies to create a N1 trillion concessional financing window to provide low-cost funds to developers, with the aim of expanding the scale of housing delivery .

Arc Dangiwa highlighted 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 well to some extent. To close the housing gap, we need to explore and adopt new financial instruments and mechanisms,” he said.

The Minister also highlighted the importance of the Shelter Afrique Housing Solutions Fund, a N100 billion real estate investment fund intended to catalyze investments in affordable housing through innovative market-based solutions.

In conclusion, Arc Dangiwa called for collaboration 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’s challenge conventional wisdom, explore uncharted territories and open new paths to make affordable housing a reality for all Africans.”

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