High costs involved in provision of other services such as water, roads and electricity have been cited as the main hindrances for provision of low cost housing
Kampala, Uganda | THE INDEPENDENT | National Housing and Construction Company Limited, Stanbic Properties Limited, and Stanbic Bank Uganda Limited have entered a tripartite partnership to initially develop approximately1400 affordable housing units, executives said on Nov.30.
Under the terms of the partnership, National Housing and Construction Company will provide land to develop affordable modern housing where upon completion Stanbic Properties will handle the direct sales and marketing with Stanbic Bank playing the role of financing partner.
Both Stanbic Bank and Stanbic Properties are subsidiaries of Stanbic Uganda Holdings Limited (SUHL), under the Standard Bank Group, Africa’s largest commercial bank.
Under the partnership, at least 1,400 tailormade housing units will be developed, targeting Stanbic Bank employees after which offers will be extended to other corporate entities, public and business community.
Executives remained guarded on the cost of the houses or the interest the would-be buyers would incur. Previously, developers have cited the high costs involved in provision of other services such as water, roads and electricity as the main hindrances for the development of low cost housing for the population.
Spencer Sabiiti, the chief executive of Stanbic Properties Uganda Limited said, their mission is to get all actors in the property space to collaborate to ultimately increase the supply of authentically affordable housing but also ease access to affordable long-term finance.
“This partnership starts us off in the right direction as we have both a developer and financier, both leaders in their respective spaces,” Sabiiti said.
Engineer Kenneth Kaijuka, the chief executive officer of National Housing and Construction Company Limited said that while undertaking company mandate, issues of inadequate funding for housing development projects as well as insufficient and untimely project off-taking framework has hindered delivery on NHCC’s mandate.
“Informed by the great strengths and our respective mandates each party represents, we have agreed to join hands under this tripartite framework to champion mutually beneficial collaborative initiatives that will address the above underlying challenges ultimately increasing housing stock, market the existing NHCC stock, customize housing products for bank staff and other clients, under tailor made schemes,” he said.
Anne Juuko, the Stanbic Bank Uganda chief executive said that the bank, which is Uganda’s largest commercial lender, agrees with experts that, ‘while housing is well articulated in Target 11 of the Sustainable Development Goals (SDGs), it is a key component of sustainable development across all of the goals.’
“We agree with the view that good housing drives access to basic services, contributes towards inclusive growth, and supports the development of a sustainable future, with a direct impact on the factors that contribute or mediate the effects of climate change; through this partnership, Stanbic Bank hopes to play its role towards the desired goal,”Juuko said.
Matia Kasaija, the minister of finance planning and economic development officiated the MoU signing ceremony at NHCC headquarters in Kampala.
He said, the move by the three companies would boost health living by people currently seeking descent housing, and in the end enhance social economic transformation.
He said, this is in line with government’s development’s development agenda to ensure that there’s adequate housing for its population. According to the country’s Vision 2040, the government expects to ensure access for all to adequate, safe and affordable housing and basic services, and upgrade slums by 2030.
Uganda’s National Housing Policy that came into play in 2016 also talks about government providing some sort of guarantee to investors.
The policy says, the government shall mobilize partners to avail cheap sources of finance and where possible provide guarantees to financial institutions to be able to access cheaper offshore short-term borrowing finance for housing and related infrastructure development.
Uganda’s housing situation is characterized by inadequate homes in terms of quality and quantity in both rural and urban areas.
The housing deficit stands at 2.4 million housing units, out of which 210,000 units are in urban areas and 1.395 million units in rural areas. An estimated 900,000 units are substandard and in need of replacement or upgrading, according to Habitat for Humanity, a non-profit housing organization.
The organisation says, by 2022, Uganda’s population is projected to be about 48 million. The population growth is expected to require more than 3 million more housing units.
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