This article is sponsored by Shelter Afrique Development Bank
Africa needs inclusive, resilient, and sustainable cities and communities for present and future generations. In their Kigali Declaration, ministers acknowledged that urbanisation has been a significant driver of development and poverty reduction.
“Governments have the opportunity to respond to this key development challenge by promoting a new model of urban development that integrates all facets of sustainable development to promote equity, welfare, and shared prosperity,” say the ministers in the declaration, agreed at the end of the Shelter Afrique Development Bank (ShafDB) AGM in Kigali.
“Addressing the complex challenge of urbanisation requires the concerted effort of member states, multilateral organisations, local governments, the private sector, and civil society, in alignment with the Sustainable Development Goals (SDGs),” the declaration observes. “The time has come to mobilise the global community, focusing on all levels of human settlements—from small rural communities to metropolises—for social and economic growth.”
Supported by a roadmap for “How to Finance and Deliver,” leveraging the professional expertise around ShafDB, the declaration proposes a metering system for progress and a networking platform for cooperation, knowledge sharing, and innovation.
“Sustainable development goals will be advanced through sustainable urbanisation with emphasis on decarbonising the built environment, rewarding green innovative solutions, and utilising certified carbon credit monetary conversion for green infrastructure development through concessional funding,” notes the declaration.
According to the declaration, financing is at the core of the housing sector achieving its set mandate, which is anchored on collaboration between various stakeholders throughout the housing value chain. Leveraging on these dynamics is essential for addressing the challenges and opportunities in providing affordable and sustainable housing for all.
With an estimated deficit of 52m housing units, Africa requires at least $1.2 trillion investment to plug in the housing deficit in the region. This challenge is further exacerbated by the fact that Africa is considered the fastest-urbanising region of the world; and, as the Organisation for Economic Co-operation and Development (OECD) projects, the continent’s population is projected to double between now and 2050 and two-thirds of this growth will be absorbed by urban areas.
“Considering the magnitude of Africa’s housing crisis, and the economic and employment multiplier effects of the housing industry, DFIs and other related multilateral institutions have a fundamental role to play in addressing the continent’s housing needs,” say the ministers. “The intervention of development partners should primarily focus on improving the housing conditions of low-income households, mobilising funding, promoting efficiency, and supporting innovative solutions to address the continent’s colossal housing shortage…
“This is well aligned with ShafDB’s core mandate in terms of attending to both the demand and supply sides of the housing value chain and also the institution’s thematic areas,” they say.
The misters recognise the imperative of establishing sustainable financing mechanisms, including increased public investment, innovative private sector engagement, and leveraging international development assistance, to ensure long-term funding stability for housing and urban development initiatives.
They commit to advocating for policy reforms and regulatory frameworks that incentivise investment in affordable housing, promote inclusive urban development strategies, and facilitate access to finance for underserved populations.
Recognising the role of partnerships and collaboration in achieving the set objectives of the human settlements, housing and built environment industries the ministers commit to the need to leverage on the strengths and capacities of various multilateral institutions and DFIs to provide holistic solutions to the challenges in the industry.
To bridge the financing gap in housing and urban development industries, the minister agreed to ensure resource mobilisation; to implement of capacity development and project preparation facilities; to harness the power of innovation and technology; to collaborate on areas relating to policy, research and development; and to establish robust implementation, monitoring and evaluation mechanisms to track the implementation of the key action points indicated in the declaration.
Urbanisation represents a critical economic, political, and social opportunity for accelerating progress towards the targets set out in the United Nations’ Sustainable Development Goals (SDGs) and the African Union’s Agenda 2063, which provides a blueprint for transforming Africa into the global powerhouse of the future.