10,000 affordable houses are set to be constructed in Rwanda; this is after the Rwanda Development Board (RDB) signed a Memorandum of Understanding (MOU) with Mitrelli Group, an Israeli conglomerate that specializes in large-scale long-term projects.
Haim Taib, Founder and President of Mitrelli Group who signed the MOU confirmed the reports and lauded RDB for the government’s readiness to cooperate and partner with them.
“This project is a very nice challenge for us since we have the knowledge, the funds, the expertise and the ability to complete it. I believe that the two sides have the same goal which is to develop the best project for the people of Rwanda,” he said.
Affordable housing a priority
Signing on behalf of Rwanda Development Board, Chief Executive Clare Akamanzi, said that the investment was timely as there is a growing housing demand in the country.
“Mitrelli Group is the kind of investor that we want in Rwanda. We are happy to work with you in providing housing for the growing housing market,” she said
The Government of Rwanda has currently considered affordable housing as one of its priorities although there are a number of strategic incentives to attract local and international investors in the sector.
According to a 2012 study conducted by Planet, Housing Market Demand, Housing Finance and Housing Preferences for the City of Kigali, it was estimated that the annual demand for new dwellings were 31,279 housing units per year against the supply of about 1000 units.
The housing demand in Rwanda
The housing demand is expected to reach 340,000 units by 2022, mainly for affordable and mid-range housing.
RDB points out that more investors are needed in the real estate and construction sector so as to ensure affordable housing as well as the reduction of the cost of imports of construction materials in the country.The real estate sector constitutes more than 8% of national GDP and therefore it needs potential investment.