The African Development Bank (AfDB) has approved a $20 million line of credit over 10 years to Housing Finance Bank Limited Uganda (HFB) to support residential and commercial real estate development aimed at providing affordable housing for low- and medium-income residents, as well as small and midsize enterprises through the creation of commercial property and office space.
According to AfDB, mortgage financing is severely lacking in Uganda, and this line of credit is designed to provide relief to the nation's housing shortage and entrepreneurial sector.
‘The line of credit will catalyze the construction, over the loan period of over 14,000 new housing units and various business premises,’ says Tim Turner, AfDB's director of private sector and microfinance department. ‘It will also create new employment opportunities in the construction sector. With HFB's focus on lower-income housing, it will enhance HFB's endeavors to finance the construction of organized lower-cost real estate in Uganda.’