MFW4A partners with AUHF, CAHF, IFC and CRRH-UEMOA to build capacity of the Mortgage Finance Industry
Building viable and sustainable housing finance operations across the value chain and to all income segments in Africa
Abidjan, 8 February 2018 – The African Union for Housing Finance (AUHF) in partnership with the Centre for Affordable Housing Finance (CAHF), International Finance Corporation (IFC), with the support of the West African Regional Mortgage Refinance Company (CRRH-UEMOA) and Making Finance Work for Africa (MFW4A) organized a workshop on “Mortgage Product Design and Portfolio Management” in Abidjan on 6 – 8 February.
The workshop was hosted by the African Development Bank (AfDB) and brought over 40 executives of state agencies and commercial banks from 15 African countries. Through presentations, group exercises and case studies, participants explored the opportunities and challenges for building viable and sustainable housing finance operations in Africa. They were also exposed to tools to design and manage demand-oriented mortgage products for informal borrowers and low-income earners in a given market.
David Ashiagbor, MFW4A Coordinator, said “Africa’s mortgage markets are constrained by inadequate and often complex land management systems in addition to a general lack of long term funding. This workshop will better equip participants to structure products in partnership with institutions like CRRH, IFC, the AfDB and property developers.”
The workshop discussed housing finance product offerings for informal borrowers and low-income earners, as well as alternative schemes such as renting and shariah-compliant housing finance products. Lessons were drawn from CRRH’s experience in West Africa, and IFC’s experience supporting housing finance institutions in India.
"IFC has financial products and expertise to seize opportunities in the housing sector, including through debt, equity, and risk sharing facilities," said Cassandra Colbert, IFC Regional Representative. Ms. Colbert added, "We also have access to resources to work with both the public and private sector to advance the housing agenda.”
Mrs Stella Kilonzo, Division Chief, Capital Markets, AfDB stressed the the importance of building the capacity within African institutions to develop and test instruments adapted to the local environment. She added “Article 25 of the Universal Declaration of Human Rights states that everyone has the right to a standard of living that is adequate for the health and well-being of himself and of his family, including food clothing and housing.”
The workshop included a field visit on the third day to two affordable housing sites in the Songon area in Abidjan. The visits enabled participants to apply the knowledge learnt during the course and presented actionable steps in providing innovative products for the affordable housing market in Africa.
About AUHF ( www.auhf.co.za)
The African Union for Housing Finance (AUHF) is a member-based association of mortgage banks, building societies, housing corporations and other organisations involved in the mobilisation of funds for shelter and housing on the African continent. In serving its members and realising its goal of effecting housing finance markets and delivery of affordable housing in Africa, the AUHF pursues four main activities:
- Networking & Deal Facilitation: Identifying and connecting stakeholders, making the whole greater than the sum of its parts.
- Information Collection & Dissemination: Understanding the issues and sharing this with members and the wider sector
- Lobbying & Advocacy: working with members to advocate for enabled environments that attract more investments, better products and stakeholders in housing and housing finance.
- Capacity Building & Training: Enabling members to respond to the challenges and opportunities within the context of their businesses; supporting better engagement between the public & private sectors.
About IFC (www.ifc.org)
IFC, a member of the World Bank Group, fosters sustainable economic growth in developing countries by financing private sector investment, mobilizing private capital in local and international financial markets, and providing advisory and risk mitigation services to businesses and governments. IFC’s vision is that poor people have the opportunity to escape poverty and improve their lives. In FY07, IFC committed $8.2 billion and mobilized an additional $3.9 billion through loan participations and structured finance for 299 investments in 69 developing countries. IFC also provided advisory services in 97 countries. For more information, visit www.ifc.org.
About CAHF (housingfinanceafrica.org)
The Centre for Affordable Housing Finance in Africa (CAHF) has been operating as an independent think tank in South Africa since May 2014, pursuing its mission of making Africa’s housing finance markets work. It grew out of the housing finance theme of the FinMark Trust, where its research and advocacy programme began in 2003. CAHF’s work extends across the continent, and it is supported by and collaborates with a range of funders and partners.
About CRRH-UEMOA (www.crrhuemoa.org)
The CRRH-UEMOA is the result of cooperation between the Banque Centrale des Etats de l’Afrique de l’Ouest (BCEAO), the Banque Ouest Africaine de Développement, and the Conseil Régional de l’Epargne Public et des Marchés Financiers to set up a mortgage markets in the UEMOA zone. Its mission includes providing long-term resources for refinancing mortgage loans to credit establishments in the UEMOA zone, whether through issuing loans on the regional financial markets, or by mobilizing concessional financing from development partners.
The Making Finance Work for Africa Partnership (MFW4A) is a platform for joint action, dissemination of ideas and coordination amongst and between donors and African financial sector stakeholders to address the African financial sector development priorities. The Partnership’s mission is to be the reference platform for advocacy, knowledge sharing and cooperation on financial sector development in Africa.