Kigali, Rwanda, July 28, 2008—IFC,
a member of the World Bank Group, and the government of Rwanda today launched
a mortgage lending program to help address the country’s significant housing
shortage and promote development of the sector.
IFC and the government will establish a facility, through Banque de l’Habitat
de Rwanda, to provide long-term mortgage financing to local financial institutions.
The program will also support the creation of financing structures for
property developers and offer capacity-building and training to local financial
institutions, helping them establish modern mortgage operations.
Jean Philippe Prosper, IFC Director for Eastern and Southern Africa, said,
“This initiative will contribute to the Rwandan government’s efforts
to make home ownership more affordable. It will also help develop an efficient
and competitive mortgage market.”
Housing finance is a priority sector for IFC’s financial markets strategy
in Africa. It is also one of the fastest-growing areas of IFC investment
in the region. Through its Pan African Housing Initiative, IFC promotes
comprehensive legal and regulatory reform to support housing development
and delivers long-term capital for mortgage lending. Programs are active
in Ghana and Uganda.
The launch of the mortgage lending program in Rwanda follows a commitment
IFC made to the government in November 2007, when President Kagame met
with Lars Thunell, IFC Executive Vice President and CEO.
IFC, a member of the World Bank Group, fosters sustainable economic growth
in developing countries by financing private sector investment, mobilizing
private capital in local and international financial markets, and providing
advisory and risk mitigation services to businesses and governments. IFC’s
vision is that people should have the opportunity to escape poverty and
improve their lives. In FY07, IFC committed $8.2 billion and mobilized
an additional $3.9 billion through syndications and structured finance
for 299 investments in 69 developing countries. IFC also provided advisory
services in 97 countries. For more information, visit www.ifc.org.