Shelter Afrique, a pan-African housing development financier, is looking to tap into the African diaspora to improve affordable housing delivery across the continent.
CUPERTINO, CALIFORNIA | NOW THEN DIGITAL — Shelter Afrique, the pan-African housing development financier, is eyeing the African Diaspora as a potential source to boost the delivery of affordable housing solutions throughout the continent.
- In an address at the 25th Annual Harvard Africa Business Conference 2023 – Africa Accelerated, Shelter Afrique Managing Director, Mr. Thierno-Habib Hann, shared insights on innovative solutions for addressing Africa’s housing deficit.
- Mr. Hann noted that the African diaspora presents a formidable resource pool for the continent’s infrastructure development, including housing. Over 170 million people of African descent that live all over the world, including in the top ten highest recipients of remittance inflows in Africa such as Nigeria and Ghana, save approximately $53bn per year.
Speaking at the 25th Annual Harvard Africa Business Conference 2023 – Africa Accelerated, Shelter Afrique Managing Director, Mr. Thierno-Habib Hann, shared insights on innovative solutions for tackling Africa’s housing deficit.
According to Mr. Hann, there are over 170 million people of African descent residing globally, providing a vast pool of resources for the continent’s infrastructure development, including housing.
The World Bank estimates that Africans in the diaspora save around $53 billion annually, and in 2021, recorded remittances exceeded $95.6 billion sent to and within Africa. In 2021, Nigeria was the highest recipient of remittance inflows in Africa, followed by Ghana and Kenya.
“African diaspora populations are growing, as are their savings and the scale of resources available to reinvest in their countries of origin. The World Bank estimates Africans in the diaspora save about $53bn per year and, in 2021, recorded remittances reached over $95.6bn sent to and within Africa,” Mr. Hann said.
Shelter Afrique is exploring the potential of tapping into the diaspora for affordable housing delivery by establishing diaspora bonds for affordable housing and infrastructure development, skills transfer, and leveraging on their networks and outreach.
In recent years, five countries, including Kenya, Nigeria, Ethiopia, Ghana, and Rwanda, with an estimated total diaspora population of four million individuals, or 12 percent of total African migrants, have issued diaspora bonds.
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Africa is home to one of the most rapidly growing urban populations, with over 60% of the urban population in sub-Saharan Africa living in areas classified as slums and informal settlements. The UN predicts that Africa’s urban population will increase to 1.5 billion by 2050, with the continent reaching the tipping point of 50% urban population around 2035.
Currently, Africa faces a housing deficit of at least 56 million units, reflecting the continent’s growing infrastructure gap, which can be attributed to a lack of sufficient capital to finance affordable housing projects, a lack of bankable projects, and inefficient risk allocation mechanisms.
Shelter Afrique believes incorporating the diaspora into the affordable housing financing mix is a crucial step in addressing the housing deficit and boosting infrastructure development.
According to the African Development Bank, Africa’s infrastructure needs amount to $130-$170 billion annually, with a financing gap in the range of $68-$108 billion. To date, less than half of this amount has been mobilized, leaving a substantial financing gap.
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