Human Settlements Minister Tokyo Sexwale on Tuesday said that the development of sub-Saharan Africa’s housing market could help cushion the region against the impact of global economic uncertainties.

Speaking at the opening of the African Union Housing Finance’s yearly meeting, the Minister said that housing was an “economic dynamo” that stimulated other market sectors such as mining and construction.

He said that the development of housing would assist sub-Saharan Africa in generating the economic growth that was needed to protect it from the devastating effects of a potential second global recession.

Sexwale said that while the first global recession was brought on by the collapse of the developed world’s housing market, the successful development of a housing market in the region could possibly save sub-Saharan Africa, one of the poorest regions in the world, from a total financial collapse.

Also at the event, United Nations (UN) Habitat director Barbara Hewson said that the organisation would focus on creating vibrant cities and overall quality housing developments in the region over the next five years.

She said that a mixed-use development seemed to be the most promising model to implement in the region.

Hewson also noted that it was important to get banks more directly involved in municipal and infrastructure finance.

“One of the things that have really impressed me in South Africa is the commitment from its government to develop human settlements and provide housing to the poor,” she commented.

But, Hewson added that it was important to attract investment from the private sector, as no government’s budget was big enough.

During the past five years, UN Habitat had provided initial funding of $10-million, stimulating overall investment from development funds and the private sector of more than $500-million into 30 different housing projects.
“To bring such pilot projects to the scale needed in the next five years, it will be essential to attract further private sector investment,” said Hewson.

Meanwhile, Sexwale suggested that further regional partnerships for the development of housing and securing access to finance should also be strengthened through the use of the New Partnership for Africa's Development, or Nepad.