Getting an affordable house outside Kigali will soon be realizable after the Development Bank of Rwanda (BRD) partnered with Pearl Estates, a real estate company to put up housing units in Musanze district – one of the six secondary cities in Rwanda.
With the first 14 units already complete in Musanze district in the Northern Province, Alex Kanyankole, the Chief Executive Officer of BRD said the bank will finance companies like Pearl Estates to construct affordable houses in Rwanda.
“With many companies setting up offices outside Kigali, there is need to put up affordable housing units for them,” Kanyankole noted during the inauguration ceremony of the houses.
The inaugurated 14 housing units cost more than Rwf400 million, and 12 of them have already been purchased confirming the high demand.
The Pearl Estates promoter, Bishop John Rucyahana, said the decision to construct a model village with affordable housing units is aimed at helping fast-track development in secondary cities.
“We have been experiencing [rural] urban migration, this is a business to generate income but also we want to respond to the government’s plan to develop secondary cities. This is designed to develop our province and Musanze District as one of the secondary cities,” he said.
“It is time we invested more in infrastructure as some people used to spend a life-time without owning a house. Now that banks are willing to partner with us, we are committed to building more affordable housing units,” Rucyahana added.
He said the housing units to be constructed in Gacaca Sector will be composed of two, three and four bedrooms to make them affordable for people in various categories.
The investors said more units will be constructed in the near future at a site designated for more than 100 units in Gacaca Sector on the outskirts of Musanze town.
Kanyankole hailed the company for designing a good business plan to secure the loan, adding that other investors should also venture into affordable houses and infrastructure in general.
“This is a huge investment to boost affordable houses in secondary cities, the project was well received and we offered the loan as affordable housing is one of our main areas of intervention,” he said.
Kanyankole urged other local investors to emulate such a model in the country’s infrastructure development, saying affordable housing is one of the bank’s areas of intervention and BRD was willing to offer loans to people with convincing projects.
“We encourage investors to build more housing units so that the cost per unit can go down. We also encourage banks to offer mortgage to investors and negotiate possible ways of offering lower interest on long-term payment,” he added.
Deogratias Kabagambe, the Northern Province executive secretary, welcomed the development, saying it will not only help people own houses but also change the image of Musanze city.
He said the houses are in line with the district master plan and urged more people to invest in infrastructure development as one of the pillars of the second Economic Development and Poverty Reduction Strategy.