$300 million fund to Africa for affordable housing
Tag: Africa Housing
Summary: International Finance Corporation and Chinese multinational construction and engineering company, CITIC Construction Co., Ltd announced in Kenya's capital, Nairobi, the launch of a $300 million inve…
International Finance Corporation(IFC), a member of the World Bank Group, and Chinese multinational construction and engineering company, CITIC Construction Co., Ltd announced in Kenya's capital, Nairobi, the launch of a $300 million investment platform to develop affordable housing in sub-Saharan Africa.
The platform, CITICC (Africa) Holding Limited, will partner with local housing developers and provide long-term capital to develop 30,000 homes over the next five years. IFC estimates that each housing unit will create five fulltime jobs on the continent.
The platform, initiated as the demand for housing in sub-Saharan Africa, pushed by rapid urbanization, hasn't been well met in many regions. According to Oumar Seydi, IFC Director for Eastern and Southern Africa, more than 40,000 people migrate into cities in Africa every day. However, there are few local developers with the technical and financial strength to construct large-scale projects in Africa's housing market. Kenya's housing shortage, for example, is estimated at 2 million units. Nigeria also needs 17 million more units.