In South Sudan, the financial sector is underdeveloped and does not provide accurate data on the performance and financial practices of key players. Given the fragile economic situation especially after December 2013, investors have been reluctant to invest and banks have had to rely on diminishing customer deposits, retained earnings and borrowings for primary funding. South Sudan’s housing and housing finance sector has attracted few institutional investors. IFC, Nordfund, Swedfund and EFK are the few institutions that have invested in programs that have had a direct and/or indirect impact on the country’s housing and housing finance sector. All the investors are DFIs, with the exception of UN-Habitat, a keen social impact investor. UN-Habitat, has for example, provided homes for refugees and returnees since 2006. The organization has constructed over 600 homes in Juba and accommodated close to 3 600 South Sudanese in decent housing units.
The report presents an in-depth analysis of the landscape of investment in South Sudan. It provides useful data on existing DFI investors, the type of instruments they use to invest and the investment environment they operate in. The report forms part of The Centre for Affordable Housing Finance’s Investor Programme which aims at quantify the breadth of investment activity with respect to housing and housing finance across Africa, and to establish a mechanism to track this on an ongoing basis. This project has collected data and highlights gaps and opportunities in the investment landscape. With the aim of stimulating greater investment in affordable housing and connecting investors with potential investments, the report profiles investors and investment instruments with the greatest impact on the housing finance market within the EAC Region. Growing financial sector experience and increasingly sophisticated financial instruments are driving Investor interest in African real estate. This includes new market opportunities related to a rising urban middle class, an increasingly localized construction material industry and innovations in housing finance such the emergence of Real Estate Investment Trusts and mortgage liquidity facilities across Africa.