Home National housing NHCC and Stanbic to develop homes for sale

NHCC and Stanbic to develop homes for sale

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Finance Minister Matia Kasaija approved the tripartite agreement on behalf of the government.

The high costs involved in providing other services such as water, roads and electricity were cited as the main obstacles to providing low-cost housing.

Kampala, Uganda | THE INDEPENDENT | National Housing and Construction Company Limited, Stanbic Properties Limited and Stanbic Bank Uganda Limited have entered into a tripartite partnership to initially develop around 1,400 affordable housing units, executives said on November 30.

Under the terms of the partnership, National Housing and Construction Company will provide land to develop modern affordable housing where, upon completion, Stanbic Properties will take care of direct sales and marketing, with Stanbic Bank playing the role of financial partner.

Stanbic Bank and Stanbic Properties are both subsidiaries of Stanbic Uganda Holdings Limited (SUHL), part of Standard Bank Group, Africa’s largest commercial bank.

As part of this partnership, at least 1,400 tailor-made housing units will be developed, targeting Stanbic Bank employees, after which the offers will be extended to other corporate, public and commercial entities.

Executives remained cautious about the cost of homes or the interest potential buyers would incur. Previously, developers have cited the high costs involved in providing other services such as water, roads and electricity as the main obstacles to developing low-cost housing for the population.

Spencer Sabiiti, Managing Director of Stanbic Properties Uganda Limited, said their mission is to get all players in the real estate space to work together to ultimately increase the supply of genuinely affordable housing, but also facilitate access to finance. affordable in the long run.

“This partnership sets us in the right direction as we have both a developer and a financier, both leaders in their respective spaces,” said Sabiiti.

Engineer Kenneth Kaijuka, Chairman and CEO of National Housing and Construction Company Limited, said that while fulfilling the mandate of the company, the problems of inadequate financing of housing development projects as well as the insufficient framework and untimely projects have hampered the fulfillment of NHCC’s mandate.

“In line with the great strengths and our respective mandates that each party represents, we have agreed to join hands within this tripartite framework to promote mutually beneficial collaborative initiatives that will address the underlying challenges above. ultimately increasing the housing stock, marketing the existing OCNC stock, customizing the housing produced for bank staff and other clients, through tailor-made programs, ”he said.

Anne Juuko, managing director of Stanbic Bank Uganda, said the bank, which is Uganda’s largest commercial lender, agrees with experts that “although housing is well articulated in Target 11 sustainable development goals (SDGs), sustainable development across all goals.

“We agree with the view that good housing promotes access to basic services, contributes to inclusive growth and supports the development of a sustainable future, with a direct impact on the factors that contribute or mitigate the effects of climate change; Through this partnership, Stanbic Bank hopes to play its role towards the desired goal, ”said Juuko.

Matia Kasaija, Minister of Planning, Finance and Economic Development chaired the MoU signing ceremony at NHCC headquarters in Kampala.

He said the move by the three companies would improve the healthy lives of those currently seeking decent housing and ultimately enhance economic and social transformation.

He said this is in line with the government’s development program to ensure that there is adequate housing for its people. According to the country’s Vision 2040, the government expects to ensure access for all to adequate, safe and affordable housing and basic services, and to improve slums by 2030.

Uganda’s National Housing Policy, which came into effect in 2016, also mentions that the government provides some sort of guarantee to investors.

The policy states that the government will mobilize partners to secure cheap sources of finance and, to the extent possible, provide guarantees to financial institutions so that they can access cheaper short-term offshore debt financing for development of housing and related infrastructure.

The housing situation in Uganda is characterized by inadequate housing in terms of quality and quantity in both rural and urban areas.

The housing deficit amounts to 2.4 million housing units, including 210,000 units in urban areas and 1.395 million units in rural areas. According to Habitat for Humanity, a nonprofit housing organization, about 900,000 units are substandard and in need of replacement or modernization.

According to the organization, by 2022 the Ugandan population is expected to reach around 48 million. Population growth is expected to require more than 3 million additional homes.

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