A recent report by the Rwandan New Times,indicates that some housing projects that are in the
pipeline could help have 15,000 affordable houses built within six years across the country.
The Rwanda Housing Authority (RHA) acting Director General, Noel Nsanzineza told The New
Times investors have been urged to embrace technologies that can be used to construct houses
that are also affordable to low-income earners.
He pointed out that the cost of an affordable house should not be more than Rwf40 million or
Rwf500, 000 per square meters.
This means that a Rwf40 million house should sit on 80 square meters. In order to have
affordable houses below this amount, there is a need for different technologies,” he said.
Out of 15,000 houses expected in six years, he said, 1,800 houses have recently been completed.
The Rwanda Housing Authority (RHA) has earmarked 6,100 hectares where the private sector
will construct affordable houses as part of the 30-year plan to fix Kigali’s shortage of affordable
homes.
A separate social rental programme (rent and rent to own scheme) is also being designed to
facilitate access to decent housing for low and extremely low-income earners.
According to data from The National Institute of Statistics, around 54 per cent of inhabitants are
low-income people who earn between $38.0 and $225 per month.
In 2020, the Rwandan government partnered with the World Bank to access grants, including
one for housing finance.
Reports indicate a sum of US$150 million was approved for the Rwanda Housing Financing
Project, aiming to expand access to long-term housing finance for middle-income individuals
who have limited or no access to mortgages.
However, experts say this initiative may not sufficiently address the housing finance needs of
lower-income earners who are excluded from mortgage lending. It remains unclear how the
finance intentions for end users align with the availability of construction finance and whether
this effectively caters to the informal or small-scale supply sector, including rental
accommodation.
To address these concerns, they have reiterated a need for a comprehensive understanding of the
demand and supply sides in the housing sector, as well as their interconnection and the specific
housing value chains involved.
Rwanda’s Vision 2050 aims to elevate the country’s living standards to that of upper middle-
income countries by 2035 and high-income countries by 2050. The National Land Use
Development Management Plan predicts a 2% annual population growth rate, resulting in a
population of 22.1 million by 2050.
Meeting the housing needs of this growing population will require 5.5 million dwelling units by
2050, with an annual delivery rate of 150,000 units from 2020 to 2050. In urban areas alone, an
estimated 3.2 million units will be needed by 2050. However, the current formal capacity falls
short of achieving the required annual delivery rate. Smaller-scale players and households
themselves contribute significantly to housing provision, often through informal means.
To achieve the affordable housing targets outlined in Vision 2050, it has become critical that
partnerships between market players and the government are crucial, alongside a focus on
leveraging and enhancing the capacity of smaller-scale players.
As Rwanda progresses towards its vision, experts say there is the need to support the
development of a housing finance sector that caters to the needs of all residents and
accommodates various housing supply approaches.