As urban populations grow across Africa, several nations, as of mid-2024, are introducing affordable housing loan options to address increasing housing demands. Affordable housing is generally defined as housing that is of good quality, in a suitable location, and priced reasonably enough for occupants to cover essential living expenses while enjoying fundamental human rights without financial strain. According to Numbeo’s Property Value and Investment Indexes, many countries are facilitating easier access to mortgage loans for individuals and families.
- Ethiopia
Ethiopia’s government-subsidized mortgage policies have made house loans among the most affordable in Africa. These policies enable locals to access homeownership loans, especially in urban areas with high housing demand. The Integrated Housing Development Program (IHDP) was launched to provide affordable housing through condominium construction, and the Homegrown Economic Reform Agenda makes loans more accessible for lower-income earners. - Cameroon
Cameroon’s housing loan system is relatively favorable compared to household income. To reduce interest rates and make homes more accessible, the state-owned mortgage company Credit Foncier du Cameroun (CFC) offers low-interest loans for building affordable dwellings. The “Vision 2035” Special Housing Project aims to decrease substandard housing and improve access to affordable homes. - Egypt
Egypt’s housing loan options are designed to be affordable, especially for middle-class and younger families. Government programs and initiatives have been established to keep mortgage loan prices accessible, particularly for first-time buyers. The Social Housing and Mortgage Finance support aims to facilitate the construction of millions of affordable housing units, while the Decent Life Initiative (Hayah Karima) seeks to create fair housing opportunities throughout the country. - Algeria
Algeria’s housing loans focus on enabling citizens to become homeowners, particularly in densely populated cities. The AADL program allows citizens to purchase housing units at subsidized rates and pay over long terms with low interest. Additionally, the National Housing Assistance supports the development of social housing and low-cost homes by offering mortgage subsidies and tax incentives to developers. - Kenya
Kenya has modified its mortgage laws to make loans more affordable for low- and middle-income families. The “Big Four Agenda” program aimed to create 500,000 affordable homes by 2022. The Kenya Mortgage Refinance Company (KMRC) provides low-cost, long-term loans through partnerships with financial institutions, lowering mortgage interest rates and extending loan repayment periods.
These initiatives across various African nations reflect a growing recognition of the need for affordable housing solutions, aiming to improve living conditions and promote homeownership among diverse populations.