As urban populations grow across Africa, several nations, as of mid-2024, are introducing affordable housing loan options to address growing housing needs.
Affordable housing is generally defined as housing that is of good quality, in a suitable location, and priced reasonably enough that occupants can still cover other essential living expenses while they meet their basic needs and enjoy fundamental human rights without financial strain. According to Numbeo’s Property Value and Investment Indexes, some countries have designed easy access to afford and repay mortgage loans for individuals and families.
Here’s a look at the top 5 African countries with the most affordable housing loans:
1. Ethiopia
Ethiopia’s government-subsidized mortgage policies have made house loans among the most cheap in Africa. These policies make it possible for locals to be eligible for homeownership loans, especially in cities that have high housing demand.
The Integrated Housing Development Program (IHDP) was launched by the Ethiopian government to provide affordable housing through condominium construction, and the Homegrown Economic Reform Agenda makes loans more accessible for lower-income earners.
2. Cameroon
Cameroon’s housing loan system is relatively lower than household income.
To reduce interest rates and make homes more accessible and affordable for a large number of people, a state-owned mortgage company called Credit Foncier du Cameroun (CFC) offers low-interest loans to build affordable dwellings. Whereas the “Vision 2035” Special Housing Project aims to decrease substandard dwellings and provide access to affordable housing.
3. Egypt
Egypt’s housing loan options are also affordable because of programs designed to make loans more accessible to middle-class and younger families. To help keep mortgage loan prices affordable, especially for first-time buyers, the government implemented housing initiatives and incentives.
Egypt’s Social Housing and Mortgage Finance support was established to help support the construction of millions of affordable housing units, while the Decent Life Initiative (Hayah Karima) seeks to create more fair housing opportunities throughout the country.
4. Algeria
Algeria housing loans are designed to enable citizens to become homeowners, particularly in highly populated cities.
The AADL program offers citizens the opportunity to purchase housing units at subsidised rates and pay over long terms with low interest. The National Housing Assistance also supports the development of social housing and low-cost homes by offering mortgage subsidies and tax incentives to developers.
5. Kenya
Kenya changed its mortgage laws to make loans more affordable for low- and middle-income families.
Kenya’s “Big Four Agenda” program, which aimed to create 500,000 affordable homes by 2022. KMRC also provides low-cost, long-term loans through collaborating with financial institutions, which lowers the mortgage interest rate and loan repayment period.
Source: vanguardngr
