The number of affordable housing units being developed in the country is by far small compared to those needed for many urban dwellers in Rwanda, Senators have said, calling for more efforts to solve the issue.
They were speaking on Monday, June 27, as the Standing Committee on Economic Development and Finance engaged officials at the Ministry of Infrastructure and its affiliated agencies on activities to fast-track sustainable urbanisation in the country.
According to the "Urbanisation & Rural Settlement Sector Strategic Plan for National Strategy for Transformation 2018-2024" by the Ministry of Infrastructure, the number of affordable housing units in urban areas were projected at 8,047 in the current 2021/2022 fiscal year, and expected to rise to 15,047 units in 2023/2024.
However, Rwanda Housing Authority (RHA) Deputy Director General, Noel Nsanzineza told senators that so far, 1,988 housing units have been set up, adding that people have started buying them.
"But, when we look at the ongoing projects we have, we realise that we will have about 7,000 more housing units in 2024," he indicated.
Senator Juvénal Nkusi, Chairperson of Committee on Economic Development and Finance said that the less than 2,000 housing units that have been constructed as of now are few even considering that the City of Kigali accommodation needs alone.
"How will that gap be fixed, what would be the solution to it?" he asked.
Nsanzineza acknowledged that the existing efforts are short for the housing demand.
Information from the Rwanda Housing Authority suggests that affordable housing unit prices range from Rwf11 million to Rwf35 million, thanks to the World Banks' $150 million financing for Rwanda to help implement the affordable housing project in the City of Kigali.
This fund is meant to promote affordable housing policy to fill the gap in the housing needs through public-private-partnership model.
According to information from the Ministry of Infrastructure, the fund would lower the construction costs through offering land and other infrastructures such as water and electricity to private investors.
On challenges, the Rwanda Housing Authority expressed concern that there is low uptake in investing in affordable housing initiatives as some investors are reluctant to venture into them.
Senator Marie Rose Mureshyankwano wanted to know why some investors are not willing to put their money into such ventures.
Meanwhile, she said that there are complaints among the public that some of the constructed houses are expensive, therefore expensive for the low-income earners, or they are overpriced, hence not cost-effective.
"We would like to know what is going to be done to address that problem [of affordable housing], because that is what will help Rwandans to have decent settlement," she said.
Way forward
Nsanzineza replied that investors request that the Government gives them a sort of offtake guarantee where they want a guarantee that in case the constructed houses do not get buyers, there is an alternative way they would be purchased so that they do not incur losses.
"That is proposed in the affordable housing policy reform that we are making. We hope that once that has been considered and approved, it will help unlock the problem because the investors who have reluctance or are slow in investing in affordable housing," he said.
Also, he said that there are also people who need houses for rent, but at a reasonable price, pointing out that investors can also explore that segment.
Apart from affordable housing consideration, Nsanzineza said, there is also an aspect of social housing because there are people who cannot afford the low-cost accommodation, and the Government has to build and donate them to those needy citizens.
"This [accommodation development] is a long-term initiative which is somehow at its initial stage as we have 1,988 housing units. But, we want in the long-term, there will be low-priced houses to buy, rent or rent to own [such that they can pay rent for a house over a given number of years and later become their owner], and those to be given to the vulnerable families," he said.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
He indicated that this is an undertaking in which the Government continues to invest resources and is committed to developing.
Regarding the urbanisation rate, Nsanzineza indicated that in 2016, 18.4 percent of Rwandan residents were living in cities, but told senators that though they are still waiting for the National Institute of Statics of Rwanda to release urbanisation rate data, the available estimates suggest that about 30.4 percent of Rwandans are living in urban areas currently.
Under the National Strategy for Transformation, the country has an objective of accelerating urbanisation such that 35 percent of its dwellers will be living in cities by 2024.
