IFC invests in affordable housing finance and development in Sub-Saharan Africa. In FY2013, IFC committed $3.5 billion to Sub-Saharan Africa projects, with housing as a priority. IFC finances the entire housing value chain, providing over $2.6 billion to 76 housing finance institutions who have issued $18.3 billion in loans to 1.9 million homeowners. Challenges to expanding affordable housing in Sub-Saharan Africa include insufficient developer capacity, weak business environments, and high interest rates.

1. Affordable Housing
Finance
Sub Saharan Africa
September, 2013
THE POWER
OF PARTNERSHIPS

2. IFC’s Purpose
• To promote open and competitive
markets in developing countries
• To help generate productive jobs and
deliver essential services to the
underserved
• To support companies and other
private sector partners where there is
a gap
• To catalyze and mobilize other
sources of finance for private sector
development
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3. Fiscal Year 2013 Highlights
Investments: 612 new projects in 113 countries
Advisory services: $232 million in program
expenditures
$24.8 billion in financing: $18.3 billion for IFC’s
own account, $6.5 billion mobilized
$49.6 billion committed portfolio
IDA countries account for almost half of IFC
projects overall: $3.5 billion invested in SubSaharan Africa
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4. Investments by Region, FY13
Commitments for IFC’s Account: $18.3 Billion
South Asia
9%
Global
1%
Latin America &
the Caribbean
26%
Middle East &
North Africa
11%
SSA is a priority
region for IFC
East Asia & the
Pacific
16%
Sub-Saharan
Africa
19%
Europe & Central
Asia
18%
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5. IFC’s Priorities
Long-term
client relationships
in emerging markets
Local financial
markets
Frontier
markets
Strategic
Focus
Areas
Climate change
and environmental
& social sustainability
Constraints to private sector growth in infrastructure,
health, education, & the food supply chain
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6. The Power of Partnerships
Host County
Governments
IFC’s Global
Network for
Solutions
900 Financial
Institution
Clients
30+ IFIs/DFIs
Sovereign
Wealth Funds/
Institutional
Investors
Civil
Society
2,000 Private
Sector Clients
20+ Bilateral Donors/
15+ Private
Foundations
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7. Our Three Businesses
Integrated Solutions, Increased Impact
Investment
Services
Advisory
Services
•
Loans
•
Access to finance
•
Equity
•
Investment Climate
•
Trade finance
•
Sustainable Business
•
Syndications
•
•
Securitized finance
Public-Private
Partnerships
•
Risk management
•
IFC Asset
Management
Company
Blended finance
$49.6 b portfolio (FY13)
$232 m (FY13)
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• Wholly owned subsidiary
of IFC
• Private equity fund
manager
• Invests third-party capital
alongside IFC
$5.5 b under mgmt (FY13)

8. IFC Real Property Portfolio: Snapshot
IFC Housing Finance & Property Investments
 IFC finances the entire housing value chain, from building materials to capital markets
 Since 2002, IFC has directly financed more than 76 housing finance lenders worldwide, providing
over USD 2.6 billion in financing to these institutions in emerging markets.
 IFC's Housing finance clients have provided USD 18.3 billion in housing finance loans to 1.9
million homeowners. As of March 2013, IFC HF projects included 85 clients, 167 projects, and $1.1
billion in commitments in all of the regions in which IFC works.
 IFC has committed approximately US$1.2 billion in Real Property production in 53 projects since
2007 (before 2007 negligible), of which 45% has been in Commercial Property and 55% in
Residential Property (affordable housing) as of 6/20/2013.
 In FY 2012 & 2013, IFC funded lines of credit for US$20 million to Housing Finance
Kenya, including up to $4 million from the IFC-Canada Climate Change Program to support a
Green Mortgage component. Additionally, IFC recently committed US$100 million to the Kenya
Commercial Bank to support its mortgage lending business.
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9. IFC Real Property Portfolio: Snapshot
IFC’s Approach to Housing Finance in SSA
 Our focus for now is on primary mortgage and microfinance lenders
 Need a robust primary lending market to support bond issuances – Deal Flow
 Capital market solutions currently feasible in a only few places: SA, possibly
Kenya, eventually Nigeria, Uganda, Ghana
 Production, Production, Production
 PPPs with authorities, JVs with international and local builders
 Banks can only make affordable mortgages if the formal sector builds affordable houses
 The residential construction industries in SSA ex-South Africa is atomized and inefficient
 IFC seeks to support mass scale developers and lenders in Africa, and Public Private
Partnerships for large scale housing production
 Housing microfinance shows promise for lower income households that build incrementally.
 Partnerships
 Shelter Afrique, AfDB, World Bank, AUHF, U.N. Habitat, AfD, KfW, and more.
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10. IFC Real Property Portfolio: Snapshot

Issues for Housing Finance in Sub-Saharan
Housing demand is strong, and public Africa many countries have made reforms in
authorities in
recent years
 Uganda mortgage law; Rwanda cadaster automation, BEE reforms; Nigeria national strategy
for housing
 Insufficient residential developer/builder capacity
 Banks can only make affordable mortgages if the formal sector builds affordable houses
 The residential construction industries in SSA countries outside of South Africa is atomized
and inefficient
 The Business Enabling Environment (BEE) remains weak for housing construction and finance in
many SSA countries
 To make housing affordable, it is critical to reduce the cost and time that it takes to trade in
real property
 Interest rates remain too high in most SSA countries – improved macro conditions would boost
affordable housing production
 Mexico, mortgage rates fell from 19% in the year 2000 to 7% by 2008
 Housing production from 200k units/year in 2000 to 750k units in 2008
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11. IFC Real Property Portfolio: Snapshot
Contacts
Sub-Saharan Africa
Global
W. Britt Gwinner
Program Manager, Housing Finance SubSaharan Africa
Nairobi, Kenya
wgwinner@ifc.org
Douglas Grayson
Head, Global Housing Finance Investments
dgrayson@ifc.org
Shana Billingy
Operations Officer, Housing Finance
Advisory Services
Nairobi, Kenya
sbillingy@ifc.org
Friedemann Roy
Head, Global Housing Finance Advisory
froy@ifc.org
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