The IFC is partnering with CITIC Construction Co., the Chinese construction and engineering multinational, to launch a $300 million affordable housing investment platform focused on sub-Saharan Africa. The new vehicle, CITICC (Africa) Holding, will partner with local housing developers to provide long-term capital to build 30,000 homes over the best five years, creating 150,000 new jobs in the process.
Rapid urbanization is pushing up demand for housing in Sub-Saharan Africa. African cities become home to over 40,000 people every day, many of whom find themselves without a roof over their heads. Kenya’s housing shortage is estimated at 2 million units, while Nigeria is in want of 17 million units. The soaring demand is being met by scant new supply. Africa’s housing market has few local developers with the technical and financial strength to construct large-scale projects.
The IFC-CITIC Construction platform will work with local housing companies to develop affordable housing projects across Sub-Saharan Africa, each ranging in size from 2,000 to 8,000 units. CITIC Construction has a proven track record in constructing and delivering large scale housing projects. The platform will start by developing homes in Kenya, Rwanda and Nigeria, before expanding to other countries as operations ramp up.
“As Sub-Saharan Africa become more urbanized, the private sector can help governments meet the critical need for housing”, said Oumar Seydi, IFC Director for Eastern and Southern Africa. “The platform will help transform Africa’s housing markets by providing high quality, affordable homes, creating jobs, and demonstrating the viability of the sector to local developers. IFC will work with financial institutions to support mortgages and housing finance that will allow people to purchase the units.”
The new housing units will be constructed in accordance to IFC’s green building standards, delivering homes that are environmentally friendly and sustainable.