Africa’s affordable housing shortage is a growing crisis, driven by rapid urbanization and population growth. The continent requires approximately $1.4 trillion to address the housing deficit of 50 million units, with annual investment needs of $16–20 billion.
Housing Deficit Across Africa
The demand for affordable housing continues to rise across the continent, fueled by economic growth, migration, and limited infrastructure. Countries like Tanzania, Kenya, Ghana, and Ethiopia illustrate the scale of the challenge and the steps being taken to address it.
Tanzania’s Housing Gap
Tanzania faces a deficit of 3 million housing units, with an annual demand for 200,000 new homes. Rapid urbanization and population growth, set to double by 2050, exacerbate the problem. Cities like Dar es Salaam and Mwanza experience high migration rates, increasing pressure on housing supply. Efforts focus on creating affordable homes through policy adjustments and innovative financing.
Kenya’s Urban Crisis
Kenya’s housing deficit has reached nearly 2 million units, growing by 200,000 annually. Urban areas like Nairobi grapple with a proliferation of informal settlements, with 61% of urban populations living in slums. Government initiatives include large-scale low-cost housing projects aimed at addressing the issue.
Ghana’s Affordable Housing Drive
Ghana faces a 1.7 million-unit housing shortfall. Plans to deliver 85,000 homes annually over the next decade are supported by innovative financing schemes, including a GH¢1 billion initiative to expand access to mortgages and construction finance.
Ethiopia’s Urban Growth Strains
Ethiopia’s urbanization has created a housing shortage of over 1.2 million units. Government-supported condominium projects and private sector contributions aim to provide affordable housing options. Microfinance and low-interest loans help middle- and low-income citizens acquire homes.
Tackling the Housing Crisis
Addressing Africa’s housing challenges requires a collaborative approach. Stakeholders emphasize affordable housing finance, innovative building technologies, and local material production to lower costs. Governments and private entities must work together to meet the growing demand.
With the housing market projected to grow, scaling up sustainable solutions will be critical to bridging the gap and improving living conditions across the continent.