IFC and Government of Rwanda Launch Program to Improve Housing

Kigali, Rwanda, July 2008—IFC, a member of the World Bank Group, and the government of Rwanda today launched a mortgage lending program to help address the country’s significant housing shortage and promote development of the sector.

IFC and the government will establish a facility, through Banque de l’Habitat de Rwanda, to provide long-term mortgage financing to local financial institutions. The program will also support the creation of financing structures for property developers and offer capacity-building and training to local financial institutions, helping them establish modern mortgage operations.

Jean Philippe Prosper, IFC Director for Eastern and Southern Africa, said, “This initiative will contribute to the Rwandan government’s efforts to make home ownership more affordable. It will also help develop an efficient and competitive mortgage market.”

Housing finance is a priority sector for IFC’s financial markets strategy in Africa. It is also one of the fastest-growing areas of IFC investment in the region. Through its Pan African Housing Initiative, IFC promotes comprehensive legal and regulatory reform to support housing development and delivers long-term capital for mortgage lending. Programs are active in Ghana and Uganda.

The launch of the mortgage lending program in Rwanda follows a commitment IFC made to the government in November 2007, when President Kagame met with Lars Thunell, IFC Executive Vice President and CEO.