Low cost housing gets US$12m boost

Shelter Afrique a specialized company for habitat and housing in Africa will invest US$12 million in housing targeting middle income earners. “We already committed to approve four transactions totaling to about $12m for housing sector in Rwanda which is big money for a start,” Alassane BÂ Managing Director of Shelter Afrique said. He said that Rwanda Development Bank is also interested in housing financing and the deal is intended to be signed before the end of this year. This was during the official signing ceremony of loan agreement worth$ 2.4m between Housing Bank and Shelter Afrique yesterday at in Kimihurura. The loan will have a grace period of two years carrying an interest rate of 8.5 percent. “This is the first time we come to Rwanda and with a reasonable size of financing and we believe the funding will increase because we see a lot of potential in this country,” he said. He hailed that policies in the country are conducive to create agood platform in order to promote business. He is optimistic that Rwanda Housing Bank will select wisely to reach out to the targeted segment with a view to improving the living environment and facilitating the achievement of the goal of housing for all. The Director General of Rwanda Housing Bank Gervais Ntaganda said that the Bank offers loans to low or middle income earners financing up to the tune of 70 percent. “Our mortgage financing targets middle income earners with loan ranging from Rwf30 to 40 million and if you want to build a house in Kigali it’s not below this,” Ntaganda said. Shelter Afrique operates with in 42 African countries and uses its distinct presence and competitive advantage to create value added products to enhance the development of the real estate sector. Ends

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Low cost housing gets US$12m boost