Up to 70 percent of people in Africa live in informal settlements with little hope of ever accessing modern housing, a housing finance congress heard on Wednesday.

"The continent faces an enduring problem, while in the context of a rapidly urbanising population South Africa has serious challenges in providing sustainable housing in inner cities," read a statement issued during the International Union of Housing Finance Congress, held in Sun City.

It brings together global industry players in the business of housing finance.

Although South Africa had the most progressive legislation and policies for housing on the continent, its people were no better off than those in many other African countries, it was noted.

South Africa's policy of giving those who invested in inner cities tax breaks was praised and considered particularly relevant given the urbanisation trend.

FinMark Trust consultant Kecia Rust said that half the country's population would be urbanised by 2030, yet 75 percent of the population earned less than US2 (about R16) per day.

"Pressure on infrastructure and essential services such as electricity and sanitation will increase. The challenge therefore, is
that as people move to cities, plans and strategies for sustainable cities are essential," read the statement.

"One of the enduring paradoxes of housing in sub-Saharan Africa is that that which is affordable is not suitable, and that which is suitable is not affordable."

FinMark had conducted research on housing in eight African countries and found a "massive shortage" of formal housing across the continent.

Rust said property dynamics and the ability to afford a mortgage broadened the gap between the rich and the poor.