Over the next 50 years, African cities will accommodate more than 40,000 people each day. The estimates for the period 2001-2011 registered a housing shortage of 60 million new units for the growing number of new urban households. Sub-Saharan African middle class, growing at the fastest pace in the world, faces the housing shortage problem despite of its economic improvements. Part of this new growing but vulnerable class has a purchasing power that could present new opportunities for builders and investors, but the majority finds it difficult to have access to a home. The lack of adequate mortgage finance and micro-credit programs make it difficult to have access to housing and many families independently build their homes ( incremental housing is the mostly adopted by lower middle and middle class as the preferred way of building their dwellings). A consequence is that there is a vast number of new stakeholders who are beginning to understand that "low and middle income urban households are the markets of the future" (Pan African Housing Fund, 2013) but there are not yet adequate policies to reach all levels of purchasing power that middle class new society presents. Estimates point out that, despite the tremendous growth of this new middle class, 60% of it belongs to the lowest income bracket, the so-called floating class. It is fundamental to redefine what the role of the government regarding housing policies is and what the role of private investments is in meeting the demand of the low-income housing market. What kind of strategies, cooperations and financing actions should the governments take to face the problem and which new housing policies and tools for lower- middle class?
HOUSING THE NEW URBAN MIDDLE CLASS IN SUB-SAHARIAN AFRICA
MAZZOLINI, ANNA
2014-01-01
Abstract
Over the next 50 years, African cities will accommodate more than 40,000 people each day. The estimates for the period 2001-2011 registered a housing shortage of 60 million new units for the growing number of new urban households. Sub-Saharan African middle class, growing at the fastest pace in the world, faces the housing shortage problem despite of its economic improvements. Part of this new growing but vulnerable class has a purchasing power that could present new opportunities for builders and investors, but the majority finds it difficult to have access to a home. The lack of adequate mortgage finance and micro-credit programs make it difficult to have access to housing and many families independently build their homes ( incremental housing is the mostly adopted by lower middle and middle class as the preferred way of building their dwellings). A consequence is that there is a vast number of new stakeholders who are beginning to understand that "low and middle income urban households are the markets of the future" (Pan African Housing Fund, 2013) but there are not yet adequate policies to reach all levels of purchasing power that middle class new society presents. Estimates point out that, despite the tremendous growth of this new middle class, 60% of it belongs to the lowest income bracket, the so-called floating class. It is fundamental to redefine what the role of the government regarding housing policies is and what the role of private investments is in meeting the demand of the low-income housing market. What kind of strategies, cooperations and financing actions should the governments take to face the problem and which new housing policies and tools for lower- middle class?
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