• No_Ads
$20m approved for housing and construction in AfricaPublish Date: Dec 20, 2013
$20m approved for housing and construction in Africa
  • mail
  • img
NSSF recently announced plans to construct an estate in Lubowa

By Carol Natukunda
The African Development Bank (AfDB) has approved $20 million to support small and medium enterprises involved in real estate and construction in Africa.
The bank noted that the money would help addressing the critical shortage of building materials while creating jobs and income in the region.
The money will be channeled through the Nairobi-based Shelter Afrique, one of the largest companies in Africa devoted to financing the development of real estate and housing across the continent.
In a press statement released yesterday, the bank stressed that economic growth, exponential urbanisation and a growing middle class are hampering the provision of adequate housing in Africa.
According to AfDB, the construction industry is growing at 20 per cent per annum, but this cannot sufficiently address the rising demand for housing partly due to a wide financing gap for construction and building materials. 
“The public and private sectors have so far been unable to deliver sufficient resources to meet this expanding working capital requirement. Where funding is available, pricing remains prohibitive,” the statement read.
There is an acute housing shortage in Uganda. Statistics from the lands, housing and urban development ministry indicate that Uganda has a shortage of over 1.6 million housing units, with Kampala district alone, having a deficit of over 100, 000 housing units. The situation is likely to worsen as the country's population in urban centers grows to over 5.6% annually in urban centers.
Recently, the government announced plans to construct 6000 houses for low income earners in seven districts.   
The districts are, Wakiso (1500 units), Lira (1000), Arua (500), Mbarara (500), Jinja (1500), Kabale (500) and Soroti (500). Some houses are already being constructed in Tororo.
Sources said that the project estimated to cost $250m (about sh641b). Experts say if financing for construction was easily available, housing would be a major source of revenue for the country.
“Whether someone has money or not, they want a place to stay. Ugandans want nice things. As their life improves, they want a better place that is accessible to their workplaces, but these places are limited,” notes Ali-shah Jivraj, a local real estate dealer in Uganda.

The statements, comments, or opinions expressed through the use of New Vision Online are those of their respective authors, who are solely responsible for them, and do not necessarily represent the views held by the staff and management of New Vision Online.

New Vision Online reserves the right to moderate, publish or delete a post without warning or consultation with the author.Find out why we moderate comments. For any questions please contact digital@newvision.co.ug

  • mail
  • img
blog comments powered by Disqus
Also In This Section
Parliament to pay tribute to Oketcho
PARLIAMENT will Tuesday afternoon pay tribute to the fallen former West Budama MP, William Oketcho, with a special session in his honour...
Luwalira calls for appreciation of gov
NAMIREMBE Diocese Bishop Wilberforce Kityo Luwalira has called upon Ugandans to walk the talk of the truth, not with an aim of winning favours...
Uganda pushes for regional law on cooperative societies
UGANDA is spearheading the passing of the East African Community Cooperative Societies Bill 2014 that is currently being scrutinized by the East African legislative Assembly...
UN says deadly attack on S. Sudan base may be
The United Nations Security Council said the attack which killed at least 58 people on a UN base in South Sudan where thousands of civilians were sheltering may ''constitute a war crime''....
South Sudan on brink of collapse as war rages
When not plotting military strategy to seize South Sudan's crucial oil fields, sacked vice-president turned rebel chief Riek Machar spends time reading the economic and political history "Why Nations Fail"....
Corruption failing research
THE money that could be used for funding research in Uganda is being embezzled by unscrupulous public officials, professors have noted...
WIll the national ID registration process be completed in the scheduled 4 months timeframe?
Can't Say
follow us
subscribe to our news letter