Development Bank of Rwanda (BRD) established a department charged with promoting affordable housing basing on two-twin pillars of “mortgage finance and production of bankable housing”. The department designed a plan with both short, medium and longer term market interventions to address challenges around housing and housing finance.
This department will build homes and establish the institutions and capital flows that will be repeatable and scalable.
Key objectives of the department include;
- Increasing supply, bankability and affordability of housing, reduce the national housing deficit;
- Increasing availability and pricing of housing finance (mortgage loans);
- Standardize all aspects of lending, make mortgage loans a commodity;
- Improve liquidity of mortgage loans, create risk management mechanisms to improve safety and performance;
- Create funding links to local capital markets where there is long term funds and desire to invest in mortgage securities.
The successful provision of affordable housing relies on the twin pillars of mortgage finance and production of bankable housing. The department currently has four major priority projects;
- Rugarama Park estate;
- Kimisange and Kagarama Estates;
- Land banking projects for Ziniya, Ndera and Busaza; and
- Build piece of land (situated at former US Embassy) for the new BRD premises for commercial purposes.
The Housing Department will also focus on finding more sites for housing development in the six secondary cities – that is – Muhanga, Rubavu, Huye, Nyagatare, Rusizi and Musanze.