The future of Africa hinges on addressing its critical lack of housing and land. The region has the highest rate of urban population growth in the world with cities unable to keep pace with demand. In many cities, informal settlements have sprung up to meet the growing demand for affordable housing. However, many citizens are living in slums because the cost of land and housing is prohibitively expensive; they simply cannot afford a home. Indeed, housing is not just a human right but also an essential component for unlocking social and economic potential. In this blog, we look at why housing is so important to Africa, Government’s role in affordable housing, and why government intervention is necessary to stimulate affordable land and housing markets.

Why Housing Matters to Africa’s Future

Housing is often overlooked when discussing Africa’s future. However, it is an essential component for unlocking the continent’s potential and achieving the Sustainable Development Goals (SDGs). In fact, the home is crucial for durable poverty reduction, improved health, and enhanced productivity. This is because a home provides a foundation for raising a family and living a dignified life — particularly for women and girls. The state of housing in Africa can be assessed by measuring the continent’s housing deficit. In Sub-Saharan Africa, the deficit is estimated at around 22.6 million units. This deficit is projected to grow by up to 36 million units by 2030. A large factor behind this growth is the region’s surging urban population.

Government Role in Affordable Housing

The government has a role to play in reducing the housing deficit by promoting affordable housing and providing accessible financing options. Governments can do this by creating incentives for private developers to build affordable housing. For example, governments can create housing finance programs that are targeted at the low-income segment by offering them subsidies and tax breaks. However, governments also need to increase investment in social housing. This can be done by investing in public-private partnerships (PPPs) and setting up a social housing fund. Additionally, governments can use their regulatory authority to ensure that sites are available for affordable housing. In some countries, governments are purchasing land to build affordable housing and setting up PPPs with the private sector to finance the development.

The Importance of Land in Africa

Land is a critical input in housing and must be made affordable to increase the supply of housing. In Sub-Saharan Africa, the average plot size is about 0.4 acres, which is very small for low-rise housing and does not allow for the provision of infrastructure and other amenities. Land is also expensive in African cities which has made it inaccessible for low-income earners.. Land is also expensive in African countries because of the low rate of land turnover. This is due to various factors such as a lack of public investment in infrastructure, the unavailability of credit, and a weak land administration system.

Government Intervention is Required

In order to make land more affordable, governments should invest in land supply. This can be done by setting up state-owned corporations to purchase land at low prices and selling it to developers at a higher price. Additionally, governments can promote urban growth through the adoption of smart city strategies that maximize the use of existing infrastructure and create high-density nodes. Lastly, governments can invest in land administration systems to make it more efficient. This can be done through the adoption of the Torrens title system, which is a public land tenure system.