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Shelter Afrique Launches Housing Affordability Calculator

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Shelter Afrique, a Pan- African housing development financier through its research and policy formulation arm, Centre of Excellence (CoE), has launched a ‘Housing Affordability Calculator’. This will help the Company better address issues of housing affordability in order to improve viability of affordable housing projects in Africa. The housing affordability calculator, which was developed in partnership with the Center for Affordable Housing Finance in Africa (CAHF), also seeks to enhance understanding of housing affordability as it pertains to the demand and supply sides in the context of African countries.

“The question of what is affordable is pervasive, but the answer still eludes us. Basically, housing affordability is a function of the purchase price, finance and the cost of living. However, if household affordability is not accurately gauged by public or private sector developers, then there is a serious risk that there will be insufficient effective demand by households to purchase or rent the houses produced. Thus, the housing affordability calculator is vital for Shelter Afrique in evaluating housing project proposals submitted. With respect to whether the units proposed are likely to be affordable to a low income target market in that location.” said Dr. Muhammad Gambo, Head of Policy, Research and Partnerships at Shelter Afrique.

He noted that the viability of affordable housing projects depends upon accurate methods for gauging household (or buyer) affordability and achieving unit costs that meet those affordability constraints.

“This affordability calculator will also assist other stakeholders in the built environment industry to better address issues of housing affordability. And to improve the targeting and viability of their affordable housing projects,” Dr. Gambo said.

The calculator requires the user to input four data points: household’s monthly income; distance from the city centre; country of residence; and the local currency or US Dollar. The calculator then applies background data and assumptions based on the prevailing mortgage terms in individual countries, percentage of monthly household income spent on transport based on distance of house from city centre, and percentage of monthly household income spent on transport and housing for each income band.

Empty apartments amid housing shortage

The push for housing development across Africa has led to a boom in new homes. But high construction costsinfrastructure, land and compliance costs mean the majority of such houses are too expensive for those who need them most.

“In most countries in Africa, even the cheapest newly-built house is still not affordable to the majority of the urban population leading to high vacancy rates as we’ve seen in some countries such as Nigeria and Kenya. Developer-built housing typically targets the higher end, and is rarely delivered at scale. But even a USD20 000 house is unaffordable for the majority – and these are only available in limited projects,” Dr. Gambo said.

Link to Shelter Afrique Video Images

Dr Gambo noted that poor affordability targeting could put pressure on governments to provide further subsidy as in the case of Vision City in Kigali, Rwanda, or in the Kilamba development in Angola”. And at the same time impose target price that cannot be feasibly delivered by a developer.

“Our aim is to improve the provision of affordable houses across Africa and we hope that the affordability calculator will help us achieve this goal. By making such projects feasible and viable on both the demand and supply sides,” Dr. Gambo concluded.

 

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Press Release

The Gender Mainstreaming for Climate Entrepreneurship

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The Gender Mainstreaming Programme 2024 organized by the Nigeria Climate Innovation Centre aimed to close the gender gap in climate entrepreneurship. NCIC achieves this objective by collaborating with industry players, and stakeholders to drive and gain support for women in the industry, across Nigeria and the world at large. WeClimeEquallyWorkshop and the G-FIVE Business Accelerator by NCIC are the two instruments the organization uses to foster gender equality and climate-focused entrepreneurship. 

The Gender and Climate Workshop Event 

This Year’s WeClimeEquallyWorkshop 2024 with the theme: Equity and Sustainability Towards a Prosperous Future was held on Thursday 21, March 2024 at Four Points by Sheraton. The welcome address was led by Mr. Adamu, the Chief Operating Officer who represented Bankole Oloruntoba, the Chief Executive Officer, of NCIC. He emphasized the work of NCIC in championing projects that drive gender equality and entrepreneurship.

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 Mrs. Titi Oshodi, Special Adviser to the Lagos State Governor on Climate Change and Circular Economy rendered the Goodwill Message and raised the need for effective communication to spur the needed change as there are many communication nuances in the Nigerian landscape. Rendering the speech of His Excellency Babajide Sanwolu, Governor of Lagos state, Mrs. Oshodi plauded that the WeClimEqualityWorkshop provides a pivotal platform to exchange knowledge and amplify women’s voices and ensure their meaningful participation in climate and circular economy because there is a link between gender, women, and marginalization is essential.

The workshop also featured 4 expert paper presentations delivered by industry experts from KPMG, FC4SLagos, Fate Foundation, and academia. In addition, attendees were treated to an intriguing panel session on applying a gender lens to the triple Es of Employment, Environment, and Entrepreneurship. Following hours of interactions, attendees were allowed an opportunity to co-create practical strategies to infuse gender lens in organizational programming, policies, and framework. 

Green Females in Venture Enterprise Business Accelerator 

Building on some key outcomes of the #WeClimeEqually Workshop, 50 climate-focused women entrepreneurs entered a 4-day hybrid business accelerator program delivered in partnership with the Lagos Business School Sustainability Center. Core modules of the accelerator centered around sustainability, innovation, legal regulatory frameworks, business management, and grant writing amongst others. 

Additional program support included a nursery for mothers, accommodation, a virtual learning platform for long-distance learners, and bonding activities. Participants were also certified at the end of the program. The Gender Mainstreaming for Climate Entrepreneurship is sponsored by Climate KIC; Europe’s leading Climate Innovation and Irish Aid. To learn more about the Nigeria Climate Innovation Center Visit the website here https://nigeriacic.org/about-us/

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PayRetailers announces its expansion to Africa strengthening its presence in emerging markets

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PayRetailers Co-Founders (Image: Supplied).

PayRetailers, the leading payment processor for Latin America is pleased to announce its new expansion to Africa. With coverage across four countries, the company offers a unified payment solution that will be a game changer for cross-border online merchants looking at Africa as their next move for strategic growth.

To strengthen its presence in the continent, PayRetailers is activating its payment processing functions in Rwanda, Zambia, Uganda, and Tanzania. This will offer a simple, user-friendly, and scalable experience to businesses looking to grow their regional operations and give them access to major local methods like SPENN, Airtel, and MTN.

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This market is increasingly connected and mobile and destined for strong growth, which is why PayRetailers, in its mission to increase financial inclusion and continue supporting business growth in emerging markets, has decided to activate its networks in the region and drive this exciting era of prosperity.

Lorenzo Pellegrino, Chief Operating & Digital Officer at the fintech, states: “As a part of our strategic expansion, we are extending our coverage to four markets in Africa, at least to start with. Over the coming months, we plan to steadily expand our operation in the continent, which is experiencing incredible growth in the payments industry and has massive potential for merchants looking to diversify and broaden their consumer base. Using the stellar and continuous growth we have experienced in LATAM as our guide, we are well-poised to help businesses thrive faster and more sustainably.”

“We recognize the immense potential and significance of venturing into these dynamic markets,” adds Juan Pablo Jutgla, CEO of PayRetailers. “Each new addition to our market coverage is a gateway into untapped opportunities and strengthened partnerships, ensuring our sustained growth and global relevance. Our imminent expansion into additional countries across West, North, and Southern Africa underscores our commitment to empowering our clients and connecting them with diverse consumer bases across the continent.”

From May onward, businesses will be able to operate in the region using PayRetailers for their online users, representing a major milestone for its client portfolio and its innovation strategy for 2024.

To secure its standing in the African market, the company reveals further expansion plans already in stow for the coming months.

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AFEX Ranks 5th on FT Africa’s Fastest Growing Companies in 2024

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AFEX Management (Image: Supplied).

AFEX, Africa’s leading commodities market player, announced that it has secured a place in the Financial Times (FT) ranking of Africa’s Fastest-Growing Companies in 2024. Coming in at Number 5 this year, this marks the organization’s 3rd consecutive entry on the list, after ranking as the fastest growing company in Africa in 2023. 

The Financial Times, in partnership with Statista, recognizes Africa’s most exciting businesses through the Fastest Growing Companies ranking, celebrating thriving businesses with exceptional revenue growth. The list ranks African companies by their compound annual growth rate (CAGR) in revenue for 2019 and 2022. In that period, AFEX grew by 287.82% in the 4-year period, despite still felt effects of COVID-19, macroeconomic headwinds and market upheavals caused by uncertain policy environments and increasing natural disasters/ climate change effects witnessed in its existing markets of Nigeria, Kenya and Uganda.

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Since 2019, AFEX has been working across Africa, creating an efficient market for commodities trading and solving food insecurity by driving financing from the Nigerian Capital markets and retail investors. In 2020, the launch of their digital trading platform, ComX, lowered barriers for commodity trading and alternative investments, while providing transparent financing options for the currently fragmented agriculture value chain. Through innovative financial instruments like the FETC and Asset Backed Commercial Papers which have historically performed well, AFEX is creating the infrastructure to boost agriculture production across Africa. 

Akinyinka Akintunde, President/CEO, AFEX Nigeria said “We are proud to once again be featured on the Fastest growing companies list for the third time in a row. This year’s entry is perhaps more significant for us considering the harsh market environment that a lot of businesses are undoubtedly contending with. This is a testament to all the work we have put in over the past few years to ensure Africa’s food self-sufficiency. Our expansion into Cote d’Ivoire this year also mirrors our commitment to our strategic expansion plan, Project Black Panther, which sees us replicating our business model in 9 African countries in the next decade to improve cross border trade on the continent”.

Today, AFEX has impacted the lives of over 500,000 farmers across 4 countries, while prioritizing creating a positive and lasting difference in their communities. Ultimately, AFEX is empowering local farming communities, fostering economic opportunities, and contributing to Africa’s sustainable self-sufficiency as the company prioritizes its impact goals.

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