In a bid to provide affordable housing units, the government is setting aside Rwf 8 billion in the nest fiscal year to support investors in the housing sector.
The fund according to Eng. Didier Sagashya, director general Rwanda housing authority is part of the incentives the government is providing to the sector which is needed to provide over 500,000 affordable housing units by 2020.
“We are calling on investors to bring their projects so that they can benefit from this government support,” he said on Thursday while addressing the press in Kigali.
The government through incentives for the sector also reduced the income corporate tax from 30 percent to 15 percent for investors in the sector, with optimism that the sector will attract more investors.
“All these have been put up to see how we can raise affordable housing units in relation to the growing demand from each specified category,” he further noted.
According to 2012 housing survey in Kigali which categorised resident s according to their income in four categories including those who earn between Rwf 35,000 to Rwf 200,000, the third between Rwf 200,000 and Rwf 600,000 while the last being above Rwf 600,000.
“So when we are talking of affordable housing we look at all the categories get the houses that are suitable for residents each category in regard to their incomes,” he noted.
Sagashya noted that the Authority together with Rwanda Social Security Board-RSSB are planning to construct 536 affordable housing units worth Rwf 15 million and 25 million each in Batsinda in Kigali.
The government according to the new ministerial order of May 2015 set up new requirements for housing sector which calls for settlements within planned area to ease access of basic amenities such as electricity, water and infrastructure.
Currently, 17% of the Rwandan population lives in Kigali and other secondary cities across the country.
Rwanda’s urbanization target is 35% of the total inhabitants by 2020. This cannot be achieved if the country does not solve the estimated 500,000 housing units needed countrywide, including 340,000 units in Kigali city only.