{Pan-African finance institution, Shelter Afrique, has committed a USD 10 million line of credit to Development Bank of Rwanda (BRD) towards improving accessibility to affordable housing in Rwanda.}
The signing ceremony of the agreement between the Managing Director of Shelter Afrique, Alassane Bâ and BRD’s Chief Executive Officer, Alex Kanyankole took place at BRD premises this Thursday, 28th November, 2013.
The purpose of the line of credit is to facilitate BRD’s long term on-lending to individual mortgages as well as private real estate developers in Rwanda. This comes as a timely intervention in solving the prevalent housing problems in Rwanda with policy makers calling on the government of Rwanda to embrace affordable housing initiatives designed to enable middle and low income earners to own homes.
In his remarks, Kanyankole expressed his gratitude to development partners such as Shelter Afrique that consistently commit their resources in support of BRD’s delivery of sustainable development and poverty eradication in the country.
“This loan facility will strongly enhance BRD’s goal of bridging the sector’s high unmet financing needs therefore contributing towards meeting the housing deficit in the country. We are very committed to supporting investments in the housing sector development to ensure availability of decent and affordable housing options for everyone in Rwanda”, added Kanyankole.
Kanyankole also emphasized that in accordance with the line of credit facility agreement, BRD will be mandated with identifying and appraising individual mortgages as well as local housing project developers.
On his behalf, the Shelter Afrique MD, Bâ said “With this new line credit, we expect at least 1000 households will acquire their first home and pave the way to mobilize more financial resources to support the development of affordable housing and entice the positive impacts on the whole economy mainly for the job creation in the construction sector”
Over the past years, BRD has prioritized financing investments in the real estate and housing sector as well as availing innovative products like ‘GiraIcumbi’ aimed enabling more Rwandans to afford decent housing and attain their dream houses.
There is strong need for interventions mainly from lending institutions to solve the housing needs in Rwanda as highlighted in a survey released by the City of Kigali in October of 2012, in which KIGALI City needs at least 344,068 new housing units over the next ten years to accommodate the rapidly growing urban population.
Established in 1982, Shelter Afrique has been financing affordable housing development in Africa through availing funds through housing finance institutions in Shelter Afrique member countries.
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