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FMO extends access to affordable housing in Africa

FMO recently disbursed USD2.5m company level equity and committed to USD10m project level equity for Houses for Africa Holdings Inc. Houses for Africa is a housing developer in Africa, which addresses the housing shortage for the emerging middle class. A lack of housing development capacity often combines with a dearth of development and mortgage finance. This is why capacity building in this space is critical. In global terms, only the top 20% to 30% of higher/middle income groups can access mortgages; the lower and lowest-income segments, which are by far the biggest groups, are not on the private finance horizon.

HFAH aims to expand its business into Nigeria, Tanzania, Uganda, Rwanda, Angola, Ghana, Cameroon, Botswana and Kenya. This expansion will generate employment in the construction and ancillary industries, which in the end will lead to a substantial increase in employment. The company also introduces new mortgage products to homebuyers. Urban, architectural and engineering design will be used to maximize energy efficiency of the housing units.

Apart from this funding, FMO will develop an Environmental and Social Management System, setting new E&S performance standards in the property development sector in Africa. Good practices in housing finance serve as a benchmark for a new affordable housing finance model and allow for the extension of home ownership towards lower and middle incomes. This deal will provide access to affordable housing for consumers at a time where mainstream banks are retreating in this area of finance in Africa.

For more information about FMO’s housing approach, please visit www.fmo.nl/housing

The Netherlands Development Finance Company (FMO) is the international development bank of the Netherlands. FMO invests risk capital in companies and financial institutions in developing countries. With an investment portfolio of € 3.4 billion, FMO is one of the largest bilateral development banks worldwide. Thanks in part to its relationship with the Dutch government, FMO is able to take risks which commercial financiers are not - or not yet - prepared to take. FMO's mission: to create flourishing enterprises, which can serve as engines of sustainable growth in their countries.

Press contact:
Nicoline van Slingelandt
Communications Officer (PR)
T: +31 70 314 9790
M: +31 622 563 047
E: n.van.slingelandt@fmo.nl

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