By Ariel Gandolfo
On May 29, the International Finance Corporation (IFC) and the state-owned China International Trust and Investment Corporation’s subsidiary CITIC Construction launched CITICC (Africa) Holding Limited, a $300 million investment platform to develop 30,000 African homes over the next five years. Projects would begin in Nigeria, Rwanda, and Kenya and expand throughout the continent.
The deal addresses a crucial regional gap in housing finance. Kenya is short 2 million housing units, Nigeria a whopping 17 million units, and these numbers are set to grow. According to the World Bank Group, three billion people, or 40 percent of the world’s population, will need new homes in the next 15 years, most of them in Africa. The United Nations Human Settlements Program (UN Habitat) states that the African continent is experiencing the highest rate of urbanization in the world, with approximately 40,000 people migrating to cities every day.
A number of African cities already face housing shortages, with notorious informal settlements such as the massive Kibera slum outside Nairobi, Kenya, home to almost 1 million people. UN Habitat reports that in some countries, including Nigeria, Sudan, and the DRC, over half of urban populations live in slums. Continue reading