The deal signed Tuesday as World Bank Group launched the Development Finance Forum in Kigali aims at developing over 10,000 housing units in Kinyinya Sector of Gasabo District.
President Paul Kagame opened the two-day forum that seeks to help global public and private sector leaders to explore and demonstrate strategies to boost private sector investment in East Africa’s priority sectors, notably, housing, agriculture and tourism.
The proposed financing plans to use the recently created International Development Association’s IDA) Private Sector Window to mitigate risk and encourage commercial investment in the housing sector.
The World Bank Group’s statement indicates that Broad Homes envisions partnering with IFC, Rwanda Social Security Board, Development Bank of Rwanda, and BSMART Technology – a leading research, development and design firm – to develop over 10,000 housing units which consist of residential and commercial units.
The units are expected to benefit nearly 50,000 members of the Kinyinya community. The total project cost is estimated to be over $200 million.
Dr Uzziel Ndagijimana, Minister for Finance and Economic Planning, said the deal is a boost to Rwanda’s housing sector.
“Habitat harmonisation is part of the Seven-Year Government Programme. On this, we are partnering with the World Bank. There are two projects including this one in Kinyinya we have signed today,” he said.
“We also have plans to start special housing fund which is expected to receive $150 million at the launch.”
The 2012 survey by Government and the UN indicated that Rwanda is expected to have a shortage of housing by 344,000 units in 2020.
Around 1,000 housing units are developed in the City of Kigali annually while the demand requires 31,000 units.
Karin Finkelston, IFC’s Vice President for Partnerships, Communication and Outreach said, “The private sector can play a central role in addressing housing shortages in Africa’s growing towns and cities.”
“IFC supports projects that mobilize global expertise in housing construction and design, to increase the supply of high quality, affordable homes in Africa.”
At the forum yesterday, President Kagame spoke about Rwanda’s efforts to increase private investment by creating a business enabling environment, where companies can thrive and contribute to local economic growth.
The fourth edition of the event attracted more than 300 participants, including representatives of governments and leading companies in Africa.