By Raymond Baguma
National Housing and Construction Corporation (NH&CC) has signed a loan agreement with Shelter Afrique, to provide housing to the rising middle-income class in Kampala district.
The minister of lands, housing and urban development, Daudi Migereko witnessed the loan signing ceremony for project financing between the two companies.
Shelter Afrique is a Pan-African development financial institution established by the African Development Bank (AfDB), Africa-Reinsurance and African Governments including Uganda. NH&CC is the leading real estate developer in Uganda with 50 year of existence.
Shelter Africa has a mandate to mobilize resources for housing development in Africa. Over the years, the company has acquired substantial operational experience and established itself as a credible housing finance institution.
Migereko hailed Shelter Afrique for providing the loan facility. He said that the project financing agreement was a sign of government’s commitment to reduce the current housing backlog of 1.6 million housing units and deficit 160,000 units per annum.
The project to cost US$17 million will enable NH&CC construct 162 housing units in Namungoona which will be sold to the public. Shelter Afrique will contribute US$9 million.
The project will include infrastructure such as roads, commercial areas, schools and community facilities on 8.4 acres of land.
Migereko said the project would lead to the creation of well-planned neighborhoods, create employment that will enhance household incomes and reduce on poverty and widen the tax base.
He urged Shelter Afrique to invest in industries to manufacture construction materials such as glass, steel, and roofing materials to reduce on the cost of construction and increase on the quality construction materials in Uganda.
Present were Yekin Oyateru the acting managing director of Shelter Afrique; Agnes Kalibbala, the chairperson of NH&CC, and Felix Okoboi the chief executive officer of NH&CC.
Also, another housing project is planned to construct at least 4000 middle-income housing units by the ministry of lands, housing and urban development, Shelter Afrique, Uganda Land Owners association and local developers. The project will be implemented in Arua, Jinja, Lira, Mbarara, Mukono, Ntungamo, Kabale and Wakiso.
Currently, NH&CC has completed and sold out over 1,000 low cost condominium flats under the first phase of Namungoona Housing Estate. Other housing projects are in Naalya, Bugolobi, Lubowa, Mbarara and Luzira.
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National housing signs pact for affordable houses