Brookings: Housing Africa

As Africa’s population grows and moves to urban areas, one major challenge facing the continent will be housing. McKinsey estimates that by 2025, over 90 percent of young people in Africa will live in urban areas. Policymakers and the private sector must work to make millions of new housing units available and affordable. Vera Songwe, writing for Brookings, urges governments to work with the private sector to create “an adequate legal and regulatory framework for housing finance” so people can afford to invest in real estate. Housing financing options are crucial, she writes, so people can invest in “longer-term financing.” Investment in housing contributes to personal wealth; in South Africa, housing and utilities represent about 30 percent of household expenditures. Incomes are rising in Africa, but the government and the private sector must convince the public to learn about and pursue mortgages. – YaleGlobal