This article mainly focuses on the overview of the African housing finance systems. The aim of the paper is to provide a preview of housing finance systems in four different African countries; to reveal the generic nature and scope of housing finance in these respective states. As it is known, shelter is one of the basic needs of human survival in addition to food and clothing. For any developing country, the provision of shelter is of paramount importance to low and moderate- income households. Ferguson (2000) notes that surveys of low-income households in developing countries typically show that housing has a higher priority than education and healthcare. However, finance for housing has received very little attention over the years. With the increase in population and the migration of people from rural to urban areas in search for often non-existence greener pastures, it has become more pertinent that Governments find ways of providing housing either directly or through support to others to do so. Durban, et al. (2002) argued that one of the main reasons why finance for housing has received little attention is the large capital that is needed to buy or rent a house.

Economic growth in South Africa has been relatively stable in the post apartheid period after stagnation in the 1980s. This was mainly due to the international economic sanctions and political instability. However, in the year 2000, a 3.0 % economic growth was recorded. According to Statistics South Africa report, the South African economy grew by 3% last year, compared to 2.8% expansion recorded in 2001. Housing delivery in South Africa is somewhat hampered by large-scale unemployment in the formal sector. The high level of unemployment has a negative effect on demand for and investment in housing. According to the Labour Force Survey (LFS) the official unemployment rate is currently standing at 30.5 percent and the expanded rate of unemployment is 41.8 percent. However, the government can take some pride from the fact that since 1994 over 1.46∗ million housing units have been built thereby ensuring that 7 million disadvantaged South Africans have a place that they now call home.

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