Affordable housing

Affordable housing
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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.
Infrastructure
Real Estate
Business Model Description

Upscale affordable housing for low and middle income households in urban and peri-urban areas.

Expected Impact

Offer quality living conditions to low income communities contributing to more equal and sustainable urban planning.

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).
20% - 25% (in ROI)
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.
Deficit of 2.4 million housing units in Uganda
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) Clean water and sanitation (SDG 6) Decent Work and Economic Growth (SDG 8)
Sector Sources
  • (I) 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. (II) Schwab, K. (2016). The Global Competitiveness Report 2015–2016. http://www3.weforum.org/docs/gcr/2015-2016/Global_Competitiveness_Report_2015-2016.pdf (III) National Planning Authority. National Development Plan III (NDPIII) 2020/21 – 2024/25. (IV) Government of Uganda. Uganda Vision 2040. https://consultations.worldbank.org/sites/default/files/materials/consultation-template/materials/vision20204011.pdf (V) Ministry of Works and Transport. Works and Transport Sector Development Plan (WTSDP) 2015/16 – 2019/20. (VI) Ministry of Finance, Planning and Economic Development. Strategic Plan 2016-2021. https://www.finance.go.ug/sites/default/files/Publications/MOFPED%20STRATEGIC%20PLAN%202016_2021%20printed.pdf
IOA Sources
  • (1) World Bank database. (2) Habitat For Humanity. Uganda - The housing need in Uganda. https://www.habitat.org/where-we-build/uganda (3) Kayiira, D. Landscape of housing investments in eastern Africa. http://www.auhf.co.za/wordpress/assets/Day2_08h00_Kayiira_Consultant-Presentation_Eastern-Africa-Investment-Landscape-Presentation.pdf (4) United Nations Human Settlements Programme (UN-Habitat) (2012). Uganda National Urban Profile. https://www.worldurbancampaign.org/sites/default/files/uganda_national_urban_profile.pdf (5) International Organisation for Migration (2017). Poverty and Unemployment Major Causes of Conflict in Ugandan informals – Study. https://uganda.iom.int/publication/poverty-and-unemployment-major-causes-conflict-ugandan-informals-%E2%80%93-study (6) Statista database. (7) Davis, K. (2019). Perceptions and Precarity of the Urban Poor in Kampala, Uganda. https://trace.tennessee.edu/cgi/viewcontent.cgi?article=6837&context=utk_gradthes (8) Ministry of Lands, Housing and Urban Development. Land Sector Strategy Plan 2013 - 2023. https://mlhud.go.ug/wp-content/uploads/2019/09/LSSP-II.pdf (9) Government of Uganda (1998). Land Act 1998, Chapter 227. http://mlhud.go.ug/wp-content/uploads/2019/03/Land-Act-1998-as-amended-CAP-227.pdf (10) Ministry of Lands, Housing and Urban Development (2017). Uganda National Urban Policy. https://mlhud.go.ug/wp-content/uploads/2019/07/National-Urban-Policy-2017-printed-copy.pdf (11) Ministry of Lands, Housing and Urban Development (2016). Uganda National Housing Policy. https://mlhud.go.ug/wp-content/uploads/2015/10/National-Housing-Policy-May-2016.pdf (12) Hashemi, A., Cruickshank, H. and Cheshmehzangi, A. Sustainable low-income housing in Uganda, challenges and opportunities. https://warwick.ac.uk/fac/sci/eng/elith/publications/all_publications/elith-uc10.pdf (13) Government of Uganda (2009). Mortgage Act 2009. https://mlhud.go.ug/wp-content/uploads/2019/03/Mortgage-Act2009.pdf (14) Ministry of Works and Transport (2006). Building Control Regulations 2006. https://www.architects.ug/national-building-code/ (15) Ministry of Works and Transport (2012). Standard Specifications 2012. https://www.architects.ug/national-building-code/ (16) Government of Uganda. Building Control Regulations Schedules. https://www.architects.ug/national-building-code/ (17) Uganda Revenue Authority (2019). A Guide on Tax Incentives / Exemptions available to the Uganda Investors. https://www.ebiz.go.ug/wp-content/uploads/2020/03/TAX_INCENTIVES_GUIDE_FOR_INVESTORS_IN_UGANDA_October_2019.pdf (18) Chilongo, M. (2015). Investment Theme: Access to Housing. https://www.sbs.ox.ac.uk/sites/default/files/2019-01/Impact-theme-Acess-to-Housing.pdf (19) Basiime, F. (2020). Uganda facing 2.4 million housing deficit - report. https://www.monitor.co.ug/uganda/news/national/uganda-facing-2-4-million-housing-deficit-report-2457372 (20) Habitat for Humanity. The housing need in Uganda. https://www.habitat.org/where-we-build/uganda (21) Chukwudi, U.S., Christopher, M.C. and Uche, A. (2017). CONSTRUCTION EXTERNALITIES: A THEORETICAL INSIGHTAND THE NIGERIAN SCENARIO. http://www.eajournals.org/wp-content/uploads/Construction-Externalities-A-Theoretical-Insightand-the-Nigerian-Scenario.pdf (22) Environmental Pollution Centers. Construction Sites Pollution. https://www.environmentalpollutioncenters.org/construction/ (23) Downs, A. (2004). Traffic: Why It’s Getting Worse, What Government Can Do. https://www.brookings.edu/research/traffic-why-its-getting-worse-what-government-can-do/ (24) Ministry of Lands, Housing and Urban Development. About Us. https://mlhud.go.ug/about-us/ (25) Ministry of Works and Transport. Ministry of Works and Transport. https://www.gou.go.ug/ministry/ministry-works-and-transport (26) 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. http://housingfinanceafrica.org/documents/case-study-16-construction-financing-in-africas-affordable-housing-sectors-testing-the-assumptions-in-kenyas-affordable-housing-program/ (27) Gholipour, H.F.,Nguyen, J. and Reza Farzanegan, M. (2016). Higher property prices linked to income inequality: study. https://theconversation.com/higher-property-prices-linked-to-income-inequality-study-68664 (28) Rossi-Hansberg,E. and Sarte, P.D. (2012). Economics of Housing Externalities. https://www.princeton.edu/~erossi/EHE.pdf (29) Government of Uganda. Maps and Regions. https://www.gou.go.ug/about-uganda/sector/maps-regions (30) Uganda Bureau of Statistics (2016). National Population and Housing Census 2014. Main Report. https://uganda.unfpa.org/sites/default/files/pub-pdf/CENSUS%202014%20Final%20Results_0.pdf (31) Centre for Affordable Housing Finance in Africa. Housing Finance in Uganda. http://housingfinanceafrica.org/countries/uganda/ (32) Ministry of Lands, Housing and Urban Development (2013). The Uganda National Land Policy. http://extwprlegs1.fao.org/docs/pdf/uga163420.pdf (33) Haas, A. and Ngoga, T.H. (2018). Where are Kampala’s missing houses? https://www.theigc.org/blog/kampalas-missing-houses/ (34) Centre for Affordable Housing Finance in Africa (2020) Uganda’s Housing Construction and Housing Rental Activities. http://housingfinanceafrica.org/app/uploads/UGANDA-FINAL-formatted-version-1.pdf (35) Kayiira, D. (2019). Uganda. http://housingfinanceafrica.org/app/uploads/V14-Uganda-profile-kf-3.pdf (36) Kenya Property Developers Association (2018). Affordable Housing in Kenya - Investment cases for developers building affordable homes in Nairobi. http://housingfinanceafrica.org/app/uploads/Kenya-Affordable-Housing-Investment-Cases6.pdf (37) Rust, K. (2016). The Residential Investment Opportunity in Driving Economic Growth. Centre for Affordable Housing Finance in Africa. http://housingfinanceafrica.org/documents/the-residential-investment-opportunity-in-driving-economic-growth/ (38) 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. http://housingfinanceafrica.org/documents/case-study-16-construction-financing-in-africas-affordable-housing-sectors-testing-the-assumptions-in-kenyas-affordable-housing-program/ (39) UNDP/PwC private sector interviews, 2021.