Rwanda’s Development Bank and Palmeraie Development Group from Morocco set to start the construction of 5,000 affordable housing units by early 2017. This agreement comes after the visit of Morocco’s King Mohammed Vi visit to the East African nation last week.
The construction is expected to take 18 months with an estimated cost of 68 million dollars. The two organizations will contribute 30 percent of the cost as the 70 percent is contributed by the Bank of Africa according to the Alex Kanyankole, the chief executive of Development Bank of Rwanda (BRD).
The first phase consisting of 2000 housing units will be developed in Gasabo district in Kigali Province, Rwanda. Other sites are still being identified for the other units.
The houses are meant for people who have had difficulties affording a house.
“For those who may not be able to afford to pay upfront, we will come up with lease agreements whereby they pay a modest amount per month and after a certain period, we identify a modest amount that you can pay to acquire the house. These are the details that we are still ironing out. We are aware of the challenges associated with affordable housing and are working to address them,” Said Kanyonik to the New Times
The housing will be apartment contrary to popular bungalows to target densely populated areas.
Kigali gets 800 – 100 housing units constructed annually with a majority being for high income earners, the city needs to build at least 31,000 housing units annually to ensure adequate and quality housing in the capital. According to a joint study by the City of Kigali, the Ministry of Infrastructure, and the European Union Kigali could face a housing deficit of 344,000 homes in 2020.
