African Union for Housing Finance Reaffirms Commitment to Developing Sustainable Housing Finance Markets

STATEMENT BY THE MEMBERS OF THE AFRICAN UNION FOR HOUSING FINANCE AT THEIR ANNUAL GENERAL MEETING IN JOHANNESBURG, SOUTH AFRICA, ON 8 SEPTEMBER 2011
 
We, the members of the African Union for Housing Finance, having met over three days in Johannesburg, South Africa, confirm our commitment to the development of sustainable housing finance markets that address the broad spectrum of needs in each of our countries and regions throughout Africa. As individual housing sector practitioners, and collectively as members of the African Union for Housing Finance, we are committed to:
  • The development of appropriate housing and housing finance products, which are affordable to our populations, and contribute effectively towards adequate housing across our nations.
  • The establishment, and consolidation of existing, institutions throughout the housing supply chain that are sustainable and robust
  • Promoting consumer education and financial literacy so that households can participate effectively in their housing processes.
  • An integrated delivery approach in which the development of housing occurs within a sound planning framework that includes the delivery of infrastructure services, and social and economic amenities.
  • Professional development and training across the spectrum of the housing value chain.
  • Working in collaboration with each other, and other stakeholders, whether in the public or private sectors, to promote the realization of sustainable human settlements across Africa.
We note that our sector faces a number of serious challenges, among them:
  • The availability of serviced land for housing. In many of our countries, cadastral systems are only just developing. The backlog in land titling undermines the development of mortgage markets, which rely on the underlying security of land tenure to facilitate affordable finance. Further, infrastructure backlogs in all of our cities and towns mean either that housing developments are accessible only to high income earners who can afford the costs of settlement-by-settlement infrastructure financing that currently prevails; or that housing is developed without the necessary infrastructure, undermining the sustainability of our settlements and contributing to the growth of slums.
  • Municipal capacity constraints undermine development processes in many of our cities. Whether expressed through insufficient infrastructure investment and maintenance, or inefficient building approval processes, or poor land administration processes, municipal capacity constraints undermine housing development at all affordability levels. This issue requires not only local, but also national and continental attention. Subsidy support within the municipal finance framework is critical if infrastructure backlogs are to be overcome and city governments are able to keep pace with population growth.
  • Housing affordability. In each of our countries, the percentage of the population below the poverty line is significant. While there is a substantial population with the capacity to engage in financial transactions, this middle class (defined by the AfDB as people earning between $2 - $20 per day) still cannot afford the finance necessary for the purchase of the least expensive, developer-built house. In part, land and infrastructure costs contribute to the affordability challenges that such households face. The promotion of incremental housing processes, financed with housing micro finance and savings, would address some of this challenge. Rental housing solutions must also be considered. It is critical that, in partnership with government, we develop mechanisms that enhance housing affordability so that adequate housing is not just the preserve of the wealthy.
We affirm our commitment to addressing these challenges in cooperation and partnership with government and other stakeholders, in each of our countries and across the continent.
 
Reginald Motswaiso, Chairman of the African Union for Housing Finance
Gijima Johannes Dladla, 1st Vice Chairman of the African Union for Housing Finance
Cas Coovadia, 2nd Vice Chairman of the African Union for Housing Finance
 
 
 
 
Members of the African Union for Housing Finance (September 2011)
  

Company

Representative

Country

Abbey Building Society Limited

Mrs Rose A Okwechime

Nigeria

Banque Rwandiase de Developpement)

Mr Jack Nkusi Kayonga

Rwanda

Botswana Building Society

Mr Pius Molefe

Botswana

Botswana Housing Corporation

Mr Reginald M Motswaiso

Botswana

CBZ Bank (formerly CBZ/Building Society)

Mr Colin Chimutsa

Zimbabwe

Centage Savings and Loans Limited

Mr Johnson N Gabriel

Nigeria

Central Africa Building Society (CABS)

Mr Kevin Terry

Zimbabwe

FBC Building Society

Mr Felix Gwandekwande

Zimbabwe

First National Bank of South Africa Limited

Mr Marius Marais

South Africa

Fund for Housing Promotion

Mr Rui Costa

Mozambique

Gauteng Partnership Fund

Mr Ismail Karr

South Africa

HFC Bank (Ghana) Limited

Mr Asare Akuffo

Ghana

HFC Kenya Limited

Mr Frank Ireri

Kenya

Home Finance Company of the Gambia Limited

Mr Omar A Sarr

Gambia

Homeloan Guarantee Company

Mrs Ethel Matenge-Sebesho

South Africa

Homemakers Malawi Limited

Barnett Chirwa & Dick Chagwamnjira

Malawi

Housing Finance Bank Ltd

Mr David Dansor Ninyikiriza

Uganda

Malawi Housing Corporation

Mr Mark Ndaferankhande

Malawi

Mauritius Housing Company

Mr Manilall Seetohul

Mauritius

Mpumalanga Housing Finance Company

Mr G J Dladla

South Africa

National Housing Corporation Kenya

Mr James Wagema Ruitha

Kenya

National Housing Corporation Tanzania

Mr N Malisa

Tanzania

National Housing Enterprise

Mr Vinson Hailulu

Namibia

National Housing Finance Corporation (NHFC)

Mr Samson Moraba

South Africa

Safetrust Savings & Loans Limited

Mr Yinka Adeola

Nigeria

Social Security & Housing Finance Corporation

Raymond a k Njai

Gambia

Swaziland Building Society

Mr Joseph V Ndlangamandla

Swaziland

Tanzania Mortgage Refinance Company Ltd

Rished Bade

Tanzania

The Banking Association, South Africa

Mr Cas Coovadia

South Africa

Union Homes Savings and Loans PLCI

Mr E A Aikhorin

Nigeria

ZB Building Society

Mr Sifiso Mahlangu

Zimbabwe

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