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August 14, 2015 by Kgomotso Tolamo | No Comments

In Zambia, 60.5 percent of the population live below the poverty line; additionally UN-Habitat estimates a housing backlog of over 1.3 million housing units.  In circumstances such as this innovation is the name of the game when it comes to housing delivery.  Standard approaches only yield standard results; which inevitably have minimal effect on reducing the housing backlog. According to the World Bank’s Global Financial Inclusion (Global Findex) Database only 22 percent of rural and 14 percent of urban Zambians over the age of 15 have an account with a formal financial institution, and only 11 percent of employed adults…

August 13, 2015 | No Comments

The Centre for Affordable Housing Finance in Africa is looking for two new dynamic staff members, to assist us in our mission to help Africa meet its need for affordable housing. We’re hiring a Data Architect and a Dashboard Architect, both positions based in Johannesburg, to start as soon as possible: Click here for the detailed job description for the Data Architect position. Click here for the detailed job description for the Dashboard Architect position.

August 13, 2015 by Sireena Ramparsad | No Comments

Coupled with rapid urbanisation rates, African cities are experiencing unprecedented urban growth that places pressure on existing infrastructure and creates a demand for additional infrastructure. At the same time, cities’ resources are already under severe strain, given increasing income disparity, low affordability levels, and unstable employment. A key question is how to accommodate this demand in a financially sustainable manner? What are the options available for cities to raise capital to finance public infrastructure and avoid over burdening already scarce resources? One of the tools explored in this regard is land-based financing (LBF) which compliments other financing options such as borrowing,…

August 7, 2015 by Allan Kundu | No Comments

With the release of 2014 Global Financial Inclusion Data (Global Findex) in April 2015, the champions of financial inclusion have every right to celebrate. The data says several exciting things, firstly, that account penetration is deepening, secondly, the number of the banked has risen by over 500 million, and thirdly, mobile money has taken root as a very critical financial service in sub-Saharan Africa. But perhaps the most important piece of information that this data seems to provide to stakeholders and players in the housing sector in Africa, is that more funds are similarly flowing into housing. GENERAL INCLUSIVENESS IN…

August 5, 2015 by Kecia Rust | No Comments

Housing and banking go together.  It stands to reason: a family’s house is likely to be the most significant investment they will make in their lifetime.  It is expensive, and as a lump sum, beyond most households’ capacity to pay.  To save up is unrealistic: a household needs to have somewhere to live before they’ve saved the full amount that the house in which they live would cost to buy.  And so, the mortgage loan was invented.  As a straightforward instrument, the mortgage loan enables a household to buy, and live in now, a house that they then pay for…

July 1, 2015 | No Comments

The Finance Linked Individual Subsidy Programme (FLISP), revised in 2012, is a South African government initiative for households in the ‘gap’ market—those who are too rich to qualify for the RDP subsidy but too poor to easily afford a new house. FLISP is intended to assist these households in accessing housing, through a contribution by government that increases the size of a home loan. To date, CAHF published three blogs on FLISP: wondering whether FLISP would be successful, trying to understand how it would work and celebrating its expansion to the resale market. These blogs, and the two documents on…

June 9, 2015 | No Comments

Relief for many— in South Africa, a couple of weeks ago, trade unions and government agreed to a public sector wage increase, preventing a threatened strike. One of the main disputes during the months of tense negotiations was the public servants’ housing allowance. Currently, workers receive an allowance of R900 (US$71) a month, up from R800 (US$63) in 2012. Unions asked for R1500 (US$120), but, in the end, an allowance of R1200 (US$95) a month was agreed upon. The housing allowance may be seen to be part of a general increase in wages of public servants (after all, a larger…

This blog originally appeared in the African Union for Housing Finance‘s May 2015 Newsletter. See the AUHF’s ‘Publications’ page for more newsletters and other publications. Africa, now the fastest growing market for cement in the world, seems to be undergoing radical change in how its buildings are constructed—whether its self-build housing or large-scale infrastructure projects, cement is increasingly the key construction material. This change has occurred across the world, where cement use has increased at a greater rate (by a factor 25 from 1950 to 2010) than any other material. China has been the predominant driver of this growth—it increased its…

May 7, 2015 by Barrack Obaga M | No Comments

This blog originally appeared on BuildingKE. By Barrack Obaga M. It goes without saying that land development and building construction require funding. In Kenya, real estate projects are funded in a number of ways, for example, equity financing or debt financing. Individual home-owners can also finance their projects from savings. Developers can also raise funding for their projects through issuing bonds. By issuing bonds, developers are able to raise private finance from the capital markets. It is, in short, a way of borrowing money. With this option, a property developer borrows money through issuing a bond to a lender, also known as a…

May 5, 2015 by Adelaide Steedley | No Comments

Citymark uses area median income as a tool to explore housing affordability. Take a look at the Citymark dashboard and our Citymark reports. In our work, the most common question we are ever asked is “what’s affordable?” At conferences, in reports, media events, conference calls, and in elevators, at dinner tables and over grocery tills. In my experience (the United States), the definition of affordability is fairly universal – the cost of housing, whether rent or a bond, which does not exceed 25 – 30% of one’s gross monthly income.   The challenge arises when providing housing for those at the middle…