KAMPALA: The government is calling for partnerships with financial institutions to develop affordable housing finance products that can enable low-income earners to access credit and construct decent homes.
The Minister for Lands, Housing and Urban Development, Judith Nabakooba, says the cost of existing mortgage products offered by commercial banks remains too high for many low-income earners to afford.
She says financial institutions need to design products that reflect the income patterns and realities of people working in the informal sector.
Ms Nabakooba says this would help more Ugandans access housing finance and contribute to addressing the country’s growing housing deficit, currently standing at 2.4 million units.
She says about 60% of the population currently lives in informal settlements, further highlighting the need for affordable housing solutions.
“Financial institutions must also now think about developing housing finance products that reflect the realities of Ugandan households, right now you find that the mortgages we have are two digits, but some of the countries we have benchmarked with, they have one digit. And even the period is a little bit longer than what is provided currently here, the products are there, but how do we make them more affordable for a young person who is just leaving university or who is just beginning life to take on a mortgage knowing that that mortgage will be covered in 20 years or 15 years compared to what we are seeing, seven, nine, and also the interest rates,” Ms Nabakooba said.
Her remarks come as development analysts project that the current housing deficit, estimated at 2.4 million units, will rise to three million units by 2030.
