Affordable housing

UNDP Rwanda

Photo by UNDP

Affordable housing
SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Real Estate
Business Model Description

Provide affordable housing for low and middle income households in urban and suburban areas.

Expected Impact

Enable access to formal housing and safe living conditions for low and medium income communities.

Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
15% - 20% (in IRR)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Short Term (0–5 years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
5% - 10% (CAGR)
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
USD 500,000 - USD 1 million
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
No Poverty (SDG 1) Sustainable Cities and Communities (SDG 11)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Good health and well-being (SDG 3) Industry, Innovation and Infrastructure (SDG 9) Reduced Inequalities (SDG 10)
Sector Sources
  • 1) Ministry of Infrastructure (2018). Draft Final Transport Sector Strategic Plan for the National Strategy for Transformation (NST1) 2018. 2) Gatete, C. (2016). The Rwanda we want: Towards ‘Vision 2050’. 3) Ministry of Infrastructure. Housing Sub-Sector. 4) World Bank. Housing Solutions for Low-Income Urban Communities in Rwanda. 5) Ministry of Infrastructure. Housing Sub-Sector. 6) Bower, J. and Murray, S. (2019). Housing need in Kigali: Findings and policy reflections. 29) African Development Bank (2008). Gender assessment: progress towards improving women’s economic status.
IOA Sources
  • 7) Kenya Property Developers Association (2018). Affordable Housing in Kenya - Investment cases for developers building affordable homes in Nairobi. 8) Project Africa Rwanda. Rwanda’s construction market in focus. 9) Chilongo, M. (2015). Investment Theme: Access To Housing. Bertha Centre for Social Innovation and Entrepreneurship. 10) Shah, S. (2019). Construction financing in Africa’s affordable housing sectors: a critical gap. Testing the assumptions in Kenya’s Affordable Housing Program. Centre for Affordable Housing Finance. 11) Rust, K. (2016). The Residential Investment Opportunity in Driving Economic Growth. Centre for Affordable Housing Finance in Africa. 12) Ministry of Infrastructure. Urbanisation and Rural Settlement Sector Strategic Plan for National Strategy for Transformation 2018/19-23/24. 13) Ministry of Infrastructure (2015). National Urbanisation Policy. 14) Ministry of Infrastructure (2015). National Housing Policy. 15) Ministry of Infrastructure. National Informal Urban Settlement Upgrading Strategy. 16) Ministry of Infrastructure. National Human Settlement Policy. 17) Republic of Rwanda. Rwanda Urban Planning Code. 18) Republic of Rwanda (2019). Rwanda Building Code. 19) Republic of Rwanda (2019). Ministerial Order N° 02/CAB.M/019 of 15/04/2019 Determining Categorization of Buildings and Procedures for Applying for and Granting Building Permits. 20) Republic of Rwanda (2019). Annex IV of Ministerial Order N° 03/CAB.M/019 of 15/04/2019 Determining Urban Planning and Building Regulations. 21) Ministry of Infrastructure. Urbanization, Human Settlement and Housing Development. 22) Uwayezu, E. and de Vries, W.T. (2020). Access to Affordable Houses for the Low-Income Urban Dwellers in Kigali: Analysis Based on Sale Prices. 23) Rwanda Development Board. Invest in Remarkable Rwanda. 24) Rwanda Development Board. Investment Incentives. 25) World Bank (2019). Creating markets in Rwanda. 26) Gardner, D., Lockwood, K. and Pienaar, J. (2019). Assessing Rwanda’s affordable housing sector. Centre For Affordable Housing Finance in Africa. 27) Republic of Rwanda (2019). Voluntary National Review Rwanda 2019. 28) Sachs, J., Schmidt-Traub, G., Kroll, C., Lafortune, G., Fuller, G., Woelm, F. (2020). The Sustainable Development Goals and COVID-19. Sustainable Development Report 2020. Cambridge: Cambridge University Press. 30) Rwanda Housing Authority (2020). Affordable housing program.