Canada pledges to fund housing co-operatives

strong micro-finance sector, an official has said.
Rooftops Canada overseas programme manager Mr Brad Lester recently said housing micro-finance sector in Africa lacked affordable wholesale finance needed to grow because the financial sector considered housing co-operatives as high risk.
Mr Lester was addressing delegates from the Ministry of Small to Medium Enterprises, Ministry of National Housing and Social Amenities, banks and various housing co-operatives in Harare last week.
He said a representative, who would be working in Zimbabwe, was expected in the country in November this year.
Rooftops Canada is in partnership with Centre for Affordable Housing Finance in Africa as well as Habitat for Humanity International in developing sub-Saharan housing micro-finance since 2008.
“The three organisations are in partnership in coming up with sustainable housing micro-finance among low-income earners in sub-Saharan Africa,” said Mr Lester.
“In order to strengthen the emerging micro-finance industry, stakeholders will meet in Nairobi in 2012 to finalise a regional initiative programme.”
The Ministry of Small and Medium Scale Enterprises said the ministry was working flat out to lobby banks to work with housing co-operatives.
“The People’s Own Savings Bank has already agreed to partner with community-based organisations and we are still engaging banks in dialogue on behalf of housing co-operatives,” said the ministry.
“If all co-operatives come together and each member saves US$1 and invests in one bank they will be able to access loans with no or minimum bank charges. We are also working to ensure that the country establishes a credit and savings bank with the help of countries like Kenya who already have a success story.”
Ministry of National Housing and Special Amenities director Mr Special Sibanda said co-operatives sustained the Government in the decade of economic challenges.