Advisory Center for Affordable Settlements & Housing

acash

Advisory Center for Affordable Settlements and Housing
ACASH

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Document TypeGeneral
Publish Date17/06/2015
AuthorMaiwase Chilongo
Published By
Edited BySuneela Farooqi
Uncategorized

Investment Theme: Access to Housing

African countries are currently experiencing a demand for affordable housing which far outstrips supply. The housing crisis is a result of several demographic shifts creating a deficit in the housing sector which is expected to worsen in coming years. It is forecasted that in Africa, the average densities will increase from 34 persons per square kilometre in 2010 to 79 persons per square kilometre in 2050. This, in conjunction with inadequate urban government policies, socio-economic inequalities, and low urban institutional capacities, has caused a proliferation of urban slums. The housing backlogs of African countries are large and growing. In 2015, Nigeria’s backlog was estimated at 17 million units and is expected to increase by 2 million units per year. Kenya’s backlog is estimated at 2 million units and is growing by 30,000 units per year. South Africa’s is 2.3 million units,
growing by 178,000 per year.

Rapid urbanisation is a strong contributor to the housing crisis. The United Nations predicts that the urban population in Africa will surpass the rural population by 2037. In 2014, the total African urban population was 450 million, which is expected to rise to 1.3 billion in 2050.iv By 2050, African urban dwellers will account for 20.2% of the world’s urban dwellers, up from 11.3% in 2010. In addition to this, the projected labour force is expected to increase to 1.1 billion by 2040 which is a significant contributor to the migration from rural areas to cities.

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