ESV Ipadeola Dorcas Omolale
Multilateral financial institutions play a pivotal role in the housing development of the various regions of the World. They are major economic agents that focus on economic developments of the developed countries as well as the Less Developed Countries (LDCs). In addressing the perennial challenge of affordable housing in Africa, these institutions have been partners in progress in this regard.
By a simple definition, multilateral financial institutions are international financial institutions chartered by two or more countries for the purpose of fostering economic growth and development. Especially in Less Developed Countries (LDCs) of the World. The African Development Bank (AfDB), the International Finance Corporation – the private sector arm of the World Bank (IFC) are good examples of multilateral financial institutions.
In recent times, the IFC has been on the forefront of housing development in Sub-Saharan Africa, playing a catalytic role in ensuring that the African housing deficit is addressed in the most economic and affordable ways. IFC recently launched a $300,000 investment platform that will allow private sector participation in the development of affordable and modern multiple housing in so many African countries. This platform is expected to partner with domestic housing developers in select African countries to develop 30,000 homes over the next five years. This strategic move is equally expected to create over 150,000 new jobs on the continent.
According to the report as published by IFC, Nigeria and Kenya are the key beneficiaries of this move. As at today, the Nigerian housing deficit is put at a whopping 17 million units, leaving so many poor Nigerians houseless without roofs on their heads. Kenya’s housing shortage is estimated at 2 million units.
Unarguably, rapid urbanization is pushing up demands for housing in Sub-Saharan Africa. African cities are becoming the new homes to over 50,000 people every day and for the region to attain a sustainable developmental pattern, its housing demands must be met to enhance human capital development that will drive the overall growth and development of the region.
The African Development Bank (AfDB) on its part is not resting on its oars in the provision of affordable housing in Africa. AfDB is the premier multilateral development institution of the African continent, and as such, plays a multifaceted developmental role. Infrastructure and housing development is one of such key roles, helping to bridge the gap of housing deficit in Africa. One of its major goals is the improvement in the quality of lives in Africa, and this cannot be achieved without adequate and quality housing development.
In February, 2016, seven years ago, the AfDB invested $8.2 million in the African housing development through Shelter Afrique, the leading Pan-African organization that is devoted to financing the development of housing and human settlement in Africa. This effort has greatly impacted the African housing landscape in a most positive manner, responding to the growing housing demands in Africa; and thereby addressing so many social economic issues in Africa.
In the coming years, multilateral financial institutions will continue to invest in African housing development. The Sustainable Development Goals (SDGs) are all aimed at addressing human development, including housing needs as captured in SDGs number eleven, which speaks to sustainable Cities and Communities. Of course, the only way this particular SDG goal can be achieved is through Public Private Partnership (PPP), and a strong support and coordination from the multilateral institutions like the International Finance Corporation (IFC), and the African Development Bank (AfDB).
ESV Ipadeola Dorcas Omolale is a Registered Estate Surveyor and Valuer. She sent in this piece from Sheffield, England.
