Govts should give land for free: Shelter Afrique

MONA-LISA DUBE RECENTLY IN VICTORIA FALLS

Pan African housing financier Shelter Afrique has said there is a need for governments to give out land for free if Africa is going to address the housing deficit on the continent which is estimated to be more than 50m housing units.

Shelter Afrique acting managing director Kingsley  Muwowo  told the Business Times on the sidelines of the annual general meeting (AGM) symposium in Victoria Falls that the cost of land has made access to housing expensive beyond the reach of many.

“For one to borrow money to build, they must have land. And we need to do mass housing through governments. Governments own land, local governments own land. So what the government must do is allocate land for free

For example in Kenya where we are headquartered, land as a component of the cost is about 30-40%. So if you remove land, the house becomes more affordable. So we are trying to influence the governments to go this route.

Housing and Social Amenities minister Daniel Garwe said housing has also been made expensive by how mortgage financing is currently structured at the banks.

“Banks have inherited a mortgage system that was designed for an elite class in our society and that elite class had secured jobs and employment with big cooperates. The landscape has now changed in Zimbabwe, we now have a lot of self-employed people in the informal sector,” Garwe said.

You now ask this group of people to bring in payslips, it will not work, he says

Meanwhile a stakeholder in the construction sector has said cohesion is lacking within the sector and may hinder the government in achieving the 200 000 housing units by 2023 target if not addressed.

Beta International executive Godfrey Manhambara told the Business Times that there is a need for a holistic approach to ensure housing is accessible and affordable.

“The conversations happening here are good but a multi-sector approach is missing. For one to deliver low cost housing to the populace we need all the players in the value chain. As constructors we require fiscal tax incentives to ensure that we invest in appropriate technology equipment that is suitable for where we are going, that in turn makes housing affordable,” he said.

The 41st Annual General Meeting was held in Victoria Falls last week.