Mortgages are one of the fastest growing segments in African retail banking with an estimated CAGR of 6% between 2017 and 20221. But many Africans do not qualify for mortgages or cannot afford interest rates that average 14% in sub-Saharan Africa 2 . Lenders are also cautious on offering long-term credit to the 81%3 of Africans in informal employment and are sensitive to macroeconomic factors and availability of housing stock. Financial innovation – such as rent-to-own models, housing microfinance and mortgage-backed-securities – are touted to make housing credit more accessible. But how can such models be leveraged at scale? And might so-called ‘green mortgages’ for environmentally certified developments steer housing finance in a sustainable direction? Leaders in the financial community explore innovations that could pump life into inclusive housing finance in Africa.
Key points
– Assessing unmet finance needs – the constraints of customers and lenders
– Scaling innovation – the possibilities in rent-to-own, capital markets and microfinance
– Pulling in a sustainable direction – incentivising loans for affordable green homes
Website: https://www.afis.africa/en/
Linkedin: https://www.linkedin.com/company/84131849/
