Expert: Most people in Africa build their homes gradually by themselves

The majority of people in Africa construct their homes gradually on their own, Kecia Rust, Founder and Executive Director of the Centre for Affordable Housing Finance in Africa (CAHF), said during an event held at the 13th Session of the World Urban Forum (WUF13) in Baku, Report informs.

According to her, people need significant support in this process. The official added that they could benefit from roads and from simplifying the supply chain.

Rast noted that mortgage lending in Kenya remains low: "Construction companies are not interested in mortgages. When selling a house through a mortgage, they add 30% to the price. They prefer cash payments because they use that money to finance construction. The reason is that land documents are often not in order, so they cannot access construction financing. If they want to build, someone must finance them, so they demand cash and offer a 30% discount. This means mortgages carry an additional 30% burden, since one must wait for documentation to be completed."

She also pointed out that this represents a gap in the housing supply chain: "These houses are not even affordable. We saw the same mismatch in Angola. There was a massive project of 30,000 homes, but the so-called affordable houses cost over $100,000. That may be reasonable globally, but not for Angola."