Kigali ex-combatants co-op ventures into real estate devt

Lack of affordable housing, especially in urban centres like Kigali, continues to trouble residents and authorities. The situation is worse among the market segment made up of low and middle-income earners as many real estate developers shun them and target the high-end market. However, the lower pyramid of the market – the low and middle-income earners in the City of Kigali need not worry anymore as their dream of owning decent homes could soon become reality, thanks to a new housing project targeting this particular market segment. The project by Abadahigwa ku Ntego Ltd, a subsidiary company of Kigali Veterans Co-operative Society (KVCS), could bring more affordable homes onto the market as early as next month. The houses in Kabuga centre, Masaka Sector in Kicukiro District, are part of the group’s efforts to contribute to the development of affordable housing in Kigali, Frank Ntabana, the managing director of Abadahigwa ku Ntego, says. Ntabana says the firm has so far invested over Rwf1 billion in real estate development. KVCS is in charge of street packing management in Kigali and its suburbs. According to the Kigali master plan 2013, slum dwellers are supposed to get modern housing at an affordable cost. In order to achieve this target, at least 34,000 housing units are required annually and 344,068 units will be needed by 2020, according to a 2012 study. Therefore, all these endeavours are geared toward provision of quality shelter to the city’s increasing population, currently standing at 1.2 million people and projected to reach 3.8 million by 2040. According to Ntabana, the idea of venturing in real estate development was inspired by the high demand for affordable housing in the country. “We want to help support government initiatives that are aimed at improving the lives of Rwandans. Therefore, our goal is to ensure that low-income earners in the country realise their dream of owning homes in well developed settlements,” he explains. He says the group is so far developing eight units, which are part of the first phase of the project that will cost Rwf138 million and each house will go for Rwf25 million. “We expect the houses to be ready by the end of next month…We are targeting to build 24 houses in the second phase, which we expect to be completed by next year. Thereafter, we will embark on the third phase of the project. We will invest about Rwf1 billion in both second and third phases.” Ntabana says houses are designed in way that ensures land optimisation given the shortage of land in the country. He adds that they are also constructing other facilities at the site, including waste treatment systems, a road leading to the site and village streets, among others. Meanwhile, the firm employs 60 graduates from Iwawa Rehabilitation Centre. More will be recruited as the project keeps expanding, according to Ntabana. “We are glad that this company employed us while many other companies shunned us, yet we acquired extensive skills in construction. This has helped us to cater for our families well using the money we earn from the project works,” said Aboubakar Safari, the co-ordinator of the Iwawa graduates employed at the site. Safari asked the government to ensure that they are readily absorbed into the labour market. The Iwawa group at the site plans to start cooperatives and to tender for construction jobs in local government and private institutions. Ntabana says the group’s project targets low and middle-income earners and supports efforts aimed at providing affordable homes. KVCS recently received Rwf833 million loan from Development Bank of Rwanda (BRD) and Zigama CSS for the construction of affordable houses, according to Steven Seka, the director general of KVCS. “We raise funds from members and banks. KVCS is known for collecting parking fees, but have committed to venture in different sectors, starting with real estate, in a bid to contribute to the country’s development and also improve the welfare of our members,” Seka says. Having started in 2004, KVCS has 1,456 members presently. “We are also planning to venture into rice growing in marshlands, e-waste management in Bugesera District, refurbishment, cottage industries and health service provision,” Ntabana says.

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Kigali ex-combatants co-op ventures into real estate devt