With government efforts towards realization of affordable housing taking a good stead of progress, another policy framework has been added to boost the initiative throughout Rwanda. The Cabinet meeting that convened in Urugwiro, Friday last week under the chair of President Paul Kagame, approved to establish an Affordable Housing Financing Fund.
The Rwf290 billion Affordable Housing Fund will be utilized in constructing houses for low income earners payable over a period of between 25-30 years up from the current 10-20 years, benefitting many Rwandans who cannot afford to raise funds for building homes with no chances of accessing long-term mortgage loans at low interest rate of 10% instead of the current 17%.
The Fund is targeting Rwandans who earn a monthly income of between Rwf200,000 and Rwf700,000. The initiation of the Fund follows a research carried out by the Rwandan Housing Authority along with other organizations which, in 2012, established that by the year 2012, there will be a need of over 340,000 dwelling units.
The fund will help to squarely address the problem of expensively imported building materials that increase the cost of rent and housing units for sale.
The Fund will be managed by the Development Bank of Rwanda.