Case Study 8 | Sustainable NGO Microfinance of Poor and Low-Income Housing in Egypt

This case study presents the strategy and approaches, structure and partnerships, clientele and loans portfolio, and microfinance performance of Habitat for Humanity Egypt’s (HFHE) housing assistance to poor and low-income households.  The Centre for Affordable Housing Finance in Africa commissioned a case study on the micro loans provided by Habitat for Humanity in Egypt; with the aim of contributing 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.  HFHE disperses short-term micro loans, with an average loan size of EGP 7,000 (US$ 890), repayable in monthly instalments over a 24-30 month period.

HFHE provides loan capital, technical support and training, monitoring and follow-up to partner NGOs and participating community-based organisations (CBOs), who are then directly responsible for the management of the loan. This “distributed network” of independent non-profit organisations disbursed 2,393 HFHE loans, totalling EGP 20.2 million to needy families in 22 rural and provincial urban communities in the 2015 financial year. HFHE uses two approaches when making housing microfinance loans, i.e. normal lending and wholesale lending. 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