Reality and expectations do not match in housing finance, Executive Director of the Centre for Affordable Housing Finance in Africa (CAHF), Kecia Rust, said during the session titled “A New Deal for Housing Finance” held within the framework of WUF13, APA-Economics reports.
She stated that one of the main problems in the housing sector is that financial systems are built on expectations detached from reality.
Kecia Rust noted that financial institutions expect populations with formal employment, large construction companies, and fully registered land systems, whereas these conditions do not exist in many countries.
According to her, the main purpose of finance should be to eliminate these gaps.
The CAHF chief stated that in Kenya, some construction companies sell apartments purchased through mortgages at prices 30% higher.
She noted that the reason for this is the limited access of construction companies to construction financing.
Kecia Rust emphasized that a large share of people in Africa build their homes themselves in stages, and in this process they need infrastructure, material supply, and technical support.
