AS the mortgage operatives continue to search for means of restoring confidence of the populace in the homeownership system, a continental group has affirmed its commitment to the development of sustainable housing finance markets that address the broad spectrum of needs in each of the countries and regions throughout Africa.The group under the aegis of African Union for Housing Finance (AUHF), comprising 27 mortgage banks, building societies, housing corporations and other organisations involved in the mobilisation of funds for shelter and housing, in 15 countries on the continent.Given that the regulatory environments in many African countries are not appropriate for mortgage finance, AUHF is seeking ways to incorporate and assist informal sector lenders, such as community banks, peoples' banks, saving associations and credit unions to participate in the housing finance market.The association after its annual general meeting held recently in Johannesburg, South Africa, said in a statement that members agreed on the development of appropriate housing and housing finance products, which are affordable to our populations and contribute effectively towards adequate housing across our nations.They also expressed commitment towards establishment and consolidation of existing, institutions throughout the housing supply chain that are sustainable and robust at the three-day meeting.Member countries of the AUHF include Nigeria, Rwanda, Botswana, Zimbabwe, South Africa,Mozambique, Ghana, Kenya, Gambia, Malawi, Uganda, Malawi, Mauritius, Tanzania and Swaziland. Individual housing finance institutions, as well as, associations representing such institutions are eligible for membership.A representative of the Botswana Housing Corporation, Reginald Motswaiso leads the group as AUHF chairman, Gijima Johannes Dladla, (1st vice chairman) and Cas Coovadia, (2nd vice chairman). Nigerian membership of the Union is drawn from the mortgage sector and represented by Abbey Building Society Limited (Mrs Rose A Okwechime), Centage Savings and Loans Limited (Mr. Johnson N. Gabriel), Safetrust Savings & Loans Limited (Mr. Yinka Adeola) and Union Homes Savings and Loans Plc (Mr. E A Aikhorin).AUHF also committed itself to promoting consumer education and financial literacy so that households can participate effectively in their housing processes, as well as, ensuring 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.'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.'The meeting also agreed to champion professional development and training across the spectrum of the housing value chain and working in collaboration with each other, and other stakeholders, whether in the public or private sectors, to promote the realisation of sustainable human settlements across Africa.They said, '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.'AUHF called for the promotion of incremental housing processes, financed with housing micro finance and savings, to address some of this challenges faced by the low-income earners, saying, '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.'Rental housing solutions must also be considered. 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.
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