When considering housing finance, one usually only thinks of financing the superstructure, with little regard for the infrastructure that supports the house. Acquiring, constructing and maintaining bulk and internal infrastructure is considered to be one of the most expensive components of the construction and maintenance process. The Centre for Affordable Housing Finance in Africa commissioned this case study, which considered various examples of how infrastructure for housing projects is financed across Sub-Saharan Africa, in order to contribute to the growing track record of novel solutions and initiatives, pioneered by policy makers, financiers, developers and households themselves that suggest that there are new opportunities for making the housing finance sector work for the poor in Africa. The case study describes and discusses alternative infrastructure financing models, their advantages and disadvantages, and the preconditions for their application in different contexts. It also discusses the various types of infrastructure, who they serve and who should pay for them, and the various financing models that have proven to be successful. We hope that this case study, and the other case studies in the series, contribute to the development of imaginative solutions by housing finance practitioners across the continent, assisting them in adapting initiatives to manage the vast array of challenges they face daily.
This case study was prepared with the support of FSD Africa