By Silvia Nyambura
According to statistics from the Ministry of Lands, Housing and Urban Development, Uganda currently has a housing deficit of over 1.6 million units. The country is at the same time urbanizing at a rate of about 5.6 percent with a population growth of over 3 percent. It is predicted by the year 2020 population in Uganda will be over 42 million yet most of these people will not be able to afford housing without the help of a mortgage. Standard Chartered Bank’s Head of Retail products Timothy Kiyimba says residential mortgages are the most popular mortgage products at the bank with an uptake of Ushs 672 trillion.
To this end, the bank has partnered with the Association of Real Estate Agents (AREA) to grow the mortgage product in the market. This was announced at a breakfast meeting held at the Kampala Sheraton on 30th July 2014 aimed at sharing Standard Chartered’s expertise in mortgage provision to AREA who are the major link between the Bank and consumers.
Addressing the meeting, former AREA president Nicholas Arinaitwe said the issue of housing deficit cannot be solved without finance to propel the industry. He added the partnership would help address the information asymmetry in the market that often leads to consumers staying away from mortgages.
Also speaking at the event the CEO Standard Chartered Bank Herman Kasekende said, “As a financial institution, it is our responsibility to provide affordable mortgage financing options and facilitate especially the middle class in accessing affordable housing to reduce the backlog. While we have the mortgage solutions, we shall be counting on your support in proving both our customers and non customers ready properties for financing.