HFB and AFD sign a €10.5m Agreement towards Affordable housing in Uganda

2 Mins read

Mr. Michael MUGABI, the Managing Director Housing Finance Bank Uganda and Mr. Hatem Charkroun, the Agence Française de Développement (AFD) country Director in Uganda, signed two financing agreements to the tune of euro 10.5 million (UGX 46.5 bn).

The line of credit and technical assistance aim at supporting the development of a housing finance offer adapted to the needs of the population all over Uganda.

The signing was done in the presence of H.E. Mr. Jules-Armand ANIAMBOSSOU, Ambassador of France to Uganda.

The euro 10 million line of credit from AFD is aimed at financing the deployment of Housing Finance Bank’s affordable housing offer, enabling them to diversify the mortgage loan offer to include low and middle-income population who currently do not have access to an adequate financial offer from most commercial banks

“Housing Finance Bank and AFD have a mutual objective of contributing to the economic development of Uganda especially through enabling people build affordable and decent housing incrementally which is the preference for most Ugandans,” Mr. Mugabi noted.

Adding, “The dire need for decent housing especially for low income people in the informal sector which accounts for most of the population in the country remains a big concern for the Government of Uganda and Housing Finance Bank. Together, we shall enable home ownership to the majority of the Ugandans that would otherwise not be able to because they can’t afford it, or don’t have a title for the property or don’t have a formal job.”

In order to create an affordable housing financing product, Housing Finance Bank partnered with Habitat for Humanity (HFH) to conduct a market study in 2018 on housing financing opportunities for low- and middle-income populations. The results of this study were very positive and showed a strong potential for Housing Finance Bank in the low-income segment, especially regarding loans for incremental and/or self-built housing, as well as a micro mortgage loan for housing.

AFD’s financing will enable HFB to roll out its microfinance offer in its 19 branches located throughout the country. The loans will average euros 4,200 (UGX 18.7 million) and target populations earning between euro 45 and 450 monthly (between UGX 200,000 and 2 million).

Additionally, a euro 500,000 technical assistance will enable the Bank to strengthen its skills to provide products adapted to the needs of the population. This grant will be used to reinforce the capacity of local builders in order to develop green housing solutions and improved construction techniques.

About Housing Finance Bank:

 Housing Finance Bank is a full-service commercial bank that offers all banking services as well as being involved in mortgage banking. Founded in 1967 as a housing finance company, Housing Finance Bank became a fully licensed commercial bank in January 2008, having acquired a commercial banking license from the Bank of Uganda. The bank is the leading mortgage lender in the country, with approximately 60 percent of all Ugandan mortgage accounts. As of December 2019, Housing Finance Bank had an asset base valued at USh912.48 billion (US$247 million), with shareholders’ equity of USh211.92 billion (US$57.3 million).

About AFD:

The Agence Française de Développement (AFD) Group funds, supports and accelerates the transition to a fairer and more sustainable world. Focusing on climate, biodiversity, peace, education, urban development, health and governance, our teams carry out more than 4,000 projects in France’s overseas departments and territories and another 115 countries. In this way, we contribute to the commitment of France and French people to support the Sustainable Development Goals (SDGs).


Source – Trumpet News

Power your brain with Ugandan News

Add some text to explain benefits of
subscripton on your services.

Leave a Reply

Your email address will not be published. Required fields are marked *