AS THE majority of African countries suffer from acute shortage of housing due to huge population growth that has been compounded by rural urban migration, studies have shown that the continent needs US$1.4tn to plug affordable housing deficit.

Affordable housing is a pressing issue across Africa due to rapid urbanization, population growth, and inadequate infrastructure. The housing deficit in Africa is estimated at 50 million units, with the demand for affordable homes growing annually.

The annual housing investment gap stands at approximately US$16–20 billion, with most of the shortfall concentrated in low- and middle-income housing.

For example in Tanzania, the report by Shelter Afrique shows that housing deficit is a significant challenge, driven by rapid urbanization, population growth which is estimated to more than double by 2050, and limited affordable housing. 

The Tanzanian housing sector’s fast-growing demand is mainly driven by strong and sustained economic growth with GDP growth averaging 6-7 percent over the past decade.

Estimates indicate that the country has a housing deficit of approximately 3 million units, with an annual demand for about 200,000 new affordable housing units annually.

“The existence of house deficit is very high with consideration of the quality of houses and congestions in line with important services like water and electricity,” says Shelter Afrique.

Cities like Dar es Salaam, Arusha, and Mwanza experience high urban migration rates, exacerbating the demand for affordable housing.

The CCM 2020–25 election manifesto instructed the government to create a friendly climate to ensure citizens across the country live in modern homes.

Low- and middle-income Tanzanian households face a number of housing challenges, including insufficient housing supply, overreliance on insecure, inadequate self-build informal housing, rising building materials costs, irregular income making it harder to plan for housing-related spending and/or access housing finance, and difficulties servicing outstanding loans.

The also reports show that in Kenya, housing deficit constitutes of nearly 2 million and continues to grow at a rate of about 200,000 units a year. 

There’s increased proliferation of informal settlements in urban areas with a whopping 61 percent of the urban population living in slums in overcrowded homes typically with only one room and no adequate ventilation which proves to be detrimental to the health of these people. 

The Kenyan government plans to launch a low-cost housing project that will see 30,000 housing units constructed in east of Nairobi by 2020 as part of the former President Uhuru Kenyatta’s development agenda.

According to the reports, Ghana has a housing deficit of 1.7 million housing units as of 2018. To address this issue, the ministry of housing in Ghana has proposed an annual delivery of 85,000 homes over the next decade. 

The government is also working towards facilitating creative financing schemes that improves overall affordability and access to modern communities for all working-class citizens. 

The Ghana government, in 2019 budget has also announced GH¢1 billion mortgage and housing finance to leverage private capital which aims to expand access to housing and deepen the local mortgage and construction finance market to help bring down the housing deficit.

Ethiopia’s economic growth is accompanied by a rapid urbanization rate which has posed several socio-economic challenges which includes affordable housing. There’s an estimated shortage of at least 1.2 million units in Ethiopia. 

The government of Ethiopia has addressed the public’s demand for residence and employing various condominium housing schemes that has largely benefited low and middle-income citizens. 

Aside of government aided projects, a number of private real estate developers have been playing a pivotal role in making affordable homes a reality. 

The private companies have made significant contributions in satisfying the demand of middle and low- income citizens for apartments and other high-end houses by fully funding the cost of homes and employing different mechanisms such as microfinance and low interest loans to transfer properties.

Shelter Afrique says addressing the housing deficit requires a multi-faceted approach, including improving access to affordable housing finance, revising land policies, and supporting local construction industries to lower costs.

Africa’s housing market is projected to grow as governments and stakeholders focus on affordable housing solutions. Scaling up innovative technologies, promoting local manufacturing of materials, and improving financing mechanisms will be crucial to bridging the housing deficit.