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Lessons Learned in
Wagane Diouf, CEO Urbanis Africa – www.urbanisafrica.com
1 Market Demand
In the price range between $15,000 and $100,000
the demand for housing will not be met in Africa
for another 50 years to come. Here is why ?
Affordability can only be achieved trough scale,
cross subsidization, design and building at the
periphery of large cities
Ordinary African do not welcome new housing
technologies. We are at the early stage of the
adoption curve. The market needs early adopters.
4 Equity Financing
Equity Financing is the hardest funding to raise.
The preferred approach is a large scale private
placement to local investors.
5 End User Financing
The real obstacle to the growth of affordable
housing is the financing of the buyer. Africa is
80% informal – Therefore mortgages are not
applicable – How about tenancy purchase
5 Construction Finance
Once Equity Finance and End User Finance have
been addressed, Construction finance is the
easiest funding to secure – But, let the contractor
do the hard work on this one !
6 Incremental Housing
For the middle class, Incremental housing is a
weak solution to the problem. However, for the
poorest of the poor, it is the only option. This
should be left to the Government.
7 Property Management
Its is a not reasonable to expect the African
middle class to pay for levies. This must be
included in the cost of the house. Here is how.
8 Development Management
The only way to approach Affordable housing is
to integrated the development process under one
umbrella and cut the soft costs. Urbanis is the
case in point.
9 Green Developments
The Zero Bill home should be the objective of
every affordable housing developer. It is possible
to achieve and has been done in England ( of all
10 Public Private Partnerships
The Role of the counties and government in
general is to provide the land, infrastructure and
guaranty the off take. The Developers can handle
the rest !