Pan-African housing development financier Shelter Afrique has signed an agreement with the Rwanda Social Security Board to scale up the development of large-scale affordable housing in Kinyinya, a suburb of Kigali city, according to an official statement recently issued in Kigali.
The company said the MoU which it signed with the Rwandan government agency is expected to boost its mandate of providing decent and affordable housing in the country through a 10,000 integrated and sustainable large scale housing project in Kigali.
Shelter Afrique is owned by 44 African governments, the African Development Bank (AfDB) and the Africa Reinsurance Company.
Reports indicate that the housing shortage is a major social challenge especially in the major urban centers in Africa, blamed on the high costs of land, building materials, and lack of innovative financing methods.
The rising demand for housing in Kigali and other major cities has exerted pressure on neighboring towns where such service supply is hindered by the unavailability of serviced land, it said.
The project is expected to cost approximately $400 million out of which TDB has approved a facility worth $150 million to Shelter Afrique to support the first two phases.
Shelter Afrique Board Chairman Steve Mainda said that the development is part of its 2019-2023 strategic goals, which focus on achieving both development impact on all large-scale housing projects so as to realise the creation of value for shareholders.
“As a board, we are committed to ensuring that the Company achieves its mandate of providing affordable housing across Africa by embracing viable public-private partnerships such as the Kinyinya Park Estate housing project,” Mainda said.
It is expected that the project will be undertaken in five phases over three to four years, consisting of 10,000 affordable apartments and 200 units of commercial outlets including schools, shops, and business facilities on behalf of the Rwanda Social Security Board (RSSB).