Access to Housing Finance in Africa: Exploring the Issues - Uganda
Finmark Trust
Download Document| Date Published | 2008 |
| Version | No. 4 |
| Primary Author | Dr William S Kalema and Duncan Kayiira |
| Other Authors | |
| Theme | |
| Country | Uganda |
Abstract
Uganda’s housing finance sector has undergone both qualitative and quantitative transformations and growth over the last decade. The sector has since 2002 registered substantial growth, expanding from one government-owned institute to 4 privately owned commercial banks and 1 Micro-finance Deposit taking Institution (MDI). The commercial banks’ mortgage portfolio has also grown similarly, increasing from UShs 32.4 billion (US $ 1.9 million) in 2002 to UShs 190 billion (US $ 109 million) in 2007. The sector is however small in comparison to the increasing housing needs of country and it has principally been serving the middle and high income earners5. The lower income earners who constitute over 80% of the population have for long been left out of this bracket which is a reflection of the relatively weak foundations made by consecutive governments in building a sound housing industry for the mainly poor6 and rapidly growing population. This report; i) explores how the housing finance sector in Uganda functions, ii) examines the effectiveness of housing finance in relation to the general housing conditions in the country, and iii) recommends a range of options for both public and private sector intervention geared towards enabling more efficient and effective housing finance services.