The Uganda Housing Finance Conference 2nd - 3rd July 2015 [fr]
Housing Finance bank in partnership with his shareholder National Social Security Fund NSSF, National Housing and Construction Company , UMEME and Shelter Afrique hosted the first ever Uganda Housing Finance conference on the 2nd and 3rd of July 2015.
The conference brought together policy makers, regulators, development finance partners and other stakeholders. The Chief Guest was the Vice President of the Republic of Uganda speaking on behalf of the President who said that the goal of the Government was to ensure that every Ugandan can afford a decent and accessible Housing Unit and this should be the goal and target of every policy maker in this sector. In attendance were the Minister of Lands, Housing and Urban Development and the Minister of Finance, Planning and Economic Development. The theme of the conference “Improving Access to Housing Finance” was derived from the fact that mortgage markets finance less than 2% of Uganda’s population and most Ugandans do not own their own homes.
In his remarks at the opening of the conference AFD Regional Director, Yves Boudot had the opportunity to present briefly to vice President AFD‘s operations in Uganda mainly focused on water and electricity sectors financing; related to the housing sector, he reiterated the low coverage from the Banking Sector for housing finance. In his presentation he pointed out that in sub Saharan Africa mortgage credits/GDP is only 2% against 50% in the European Union and 77% in the United States. More so the concentration of the financial offer is towards higher income households with only 3% of the African population having access to a mortgage credit.
He informed the delegates of AFD’s intervention in the Housing sector through the use of its expertise in affordable housing with a broad intervention focusing on supporting innovative financial products dedicated to housing, provision of Technical Assistance for the design and construction of houses as well as formation of partnerships with key organizations in the sector such as the Housing Finance Bank and Shelter Afrique. A credit line of 10M$ with a duration of 10 years has already been lent to Housing Finance Bank in Uganda for long term refinancing of the bank’s housing finance activity.
According to the National Planning Authority, Uganda’s capital city alone has a housing deficit of 100,000 units and with a growth rate of 5.2% there is need for improved and coordinated urban planning to overcome the development of slum growth. The sector on average accounts for 7.5 per cent of Uganda’s GDP. Its growth is attributed to rapid population growth, increase in disposable income and increase in foreign direct investment. The challenges in the housing sector include; absence of proper legislation, housing policy to regulate and accelerate the construction of housing units, lack of standard on housing and the land policies in the country that can hinder the acquisition and development of land .