The Board of Directors of the African Development Bank (AfDB) has approved on 23 November a U.S.$ 20 million line of credit over 10 years to Housing Finance Bank Limited (HFB) Uganda to support residential and commercial real estate development aimed at benefiting low and medium income earnings through decent housing, as well as small and medium enterprises through commercial property and office space.

The line of credit is in line with Uganda's National Development Plan and will assist to provide affordable housing for both low and medium income groups. It will also promote the construction of well-planned housing estates adhering to sound environmental and town planning standards, thus improving urban planning in the country. Mortgage financing is severely lacking across Africa and in Uganda, and this line of credit will provide relief to the important housing shortage in the country.

Tim Turner, AfDB Director of Private Sector and Microfinance department said: "The line of credit will catalyze the construction, over the loan period of over 14,000 new housing units and various business premises. It will also create new employment opportunities in the construction sector. With HFB's focus on lower income housing, it will enhance HFB's endeavors to finance the construction of organized lower cost real estate in Uganda."

Media Contact :

Sabrina Hadjadj Aoul