Housing accessibility viewed through supply-demand lens
Baku, May 21, AZERTAC
A panel session titled “Cities are Built the Way They are Financed: Meeting the Finance moments in the Housing Delivery Value Chain in Africa” was held as part of the 13th Session of the UN World Urban Forum (WUF13).
Kecia Rust, Executive Director and Founder of the Centre for Affordable Housing Finance in Africa, stated in her speech that the accessibility problem in housing provision is very often considered merely at the supply-demand level, with solutions typically proposed in the form of reducing costs or increasing subsidies. However, this approach overlooks the key factor – the role of the structure, duration, and pricing of finance within the housing value chain. In reality, it is the form of financing that determines the character of the buildings constructed and who they will serve.
“On the African continent, high interest rates, short-term loans, currency volatility, and fragmented capital flows severely limit housing accessibility. Nevertheless, new approaches demonstrate that intervening correctly at critical stages of financing can fundamentally change the situation,” Kecia Rust emphasized.
During the session, construction companies, engineers, investors, and Development Finance Institutions (DFIs) came together to share practical experiences regarding the attraction and allocation of capital. The event highlighted how the integration of funds into the construction process through design, technology, and blended finance tools can make housing more accessible on a mass scale. It also defined the conditions for applying these successful models in other regions.
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