Africa’s housing sector has witnessed remarkable and significant developments over the past few years. Thanks to the multiple reforms brought about by stakeholders of the sector. However, there is still a vast scope of possibilities to bridge the gap between the affordable housing demand and supply through multiple approaches, which when brought together will lead to a future where everyone has a place to call home.
We have encompassed some of the influencing factors that would allow more collaboration and thus pose the African affordable housing as a lucrative sector to invest in a meaningful future.
1. Investment & Financing
The key to a good return is based on a bankable investment structure, optimal project management and predictable returns. Multiple channels of securing & boosting returns and alternate financing options help re-instil the investor/financier faith in affordable housing projects.
2. Public Private Partnerships:
PPP models are now taking the centre stage as governments turn to PPPs for long-term commitments; risk-sharing and large scale investments. This model is not only cost-efficient, but also time-efficient and objective. Yet, multiple concerns arise with the model with respect to the accountability, control and rigidity of contracts.
3. Design & Construction efficiency:
A whopping 70% or more of the entire cost is directed towards construction. This is one of the major challenges that affect affordability. Innovative construction methods such as the use of reclaimed material, new planning and cost management systems, design innovations, account for construction efficiency of homes.
4. Legal & policy framework:
While these exist to protect the interests of the end users, there is no denying that, many a times legal structures & policies could be an impediment for investors to venture into projects as a result of implications which could impact the entire value chain of the sector. The issue is how to address priorities and various conflicts of interests in order to ease financing and supply of affordable houses.
5. Technological advancements:
The rapidly evolving landscape of technology, offers numerous ways to not only expedite the initiation and delivery of houses but also streamlines, the whole process, increases transparency and thus reassure that the residential units are fast, affordable and reach the rightful buyer.
6. Infrastructure and community facilities:
Homes that are well within the proximity of workplaces, educational institutions and other recreational areas are always a win with the community. This not only attracts more investment but also the buyers, providing them with low-cost homes and facilities that are basic to present-day living.
7. Sustainable Homes are the Future
Last but certainly not the least, is the concept of Green Homes, where people and the planet can thrive. Green building practices and sustainable designs contribute to efficient utilization of resources, while creating healthier and more productive environments for people and communities.
The Affordable Housing Investment Summit attempts to open avenues to have honest and fruitful dialogues, on the 26th & 27th of June 2019 in Nairobi-Kenya, along the factors above and more, among the key stakeholders including the government representatives, financiers and project developers who delve into the ideas that can convert challenges into opportunities to make affordable homes a reality for all.
To Know More Register Here : www.ahisummit.com/registration/