Shelter Afrique Development Bank and Vista Group Holding SA are joining forces to tackle one of the most persistent problems in African housing: the shortage of long-term financing that makes affordable homes actually affordable.
The two organisations have partnered specifically to explore ways of mobilising long-term capital for affordable housing finance across the continent. The focus on long-term funding is significant because short-term capital, which is what most developers and buyers currently have access to, drives up costs and makes sustainable housing projects difficult to structure.
This partnership signals a growing recognition that the affordable housing gap in Africa is not simply a construction problem. It is a financing problem, and solving it requires dedicated, patient capital that matches the long timelines of housing development and mortgage lending.
Watch this space. If Shelter Afrique and Vista Group can crack the funding model, it could open a serious conversation about what scalable, affordable housing finance looks like for the continent.
Originally published by BusinessDay.