A new study is shedding light on women’s market for housing finance in three countries: Colombia, India and Kenya.
The International Finance Corporation (IFC) has published a market study on housing finance for women in three countries titled ‘Her Home – Housing Finance for Women’ exploring the scope and nature of women’s housing finance markets in Colombia, India, and Kenya.
Her Home – Housing Finance for WomenWomen make up half the world’s population, and half of its economic potential. Yet they are far less likely than…
The report, according to Centre for Affordable Housing Finance in Africa (CAHF), highlights some of the barriers to women’s access to housing finance, the considerable and often overlooked market size posed by women borrowers, and the possible need for specific gender-related housing finance products and services.
Some key findings from the report:
Female-headed households (defined as households in which a woman is the primary income earner or decision-maker) constitute 26 percent of households in Colombia, nine percent in India, and 25 percent in Kenya. In all three countries, female-headed households had less access to banks and other formal sources of finance than male-headed households and joint decision-making households.
Self-employment emerged as a common source of women’s employment.
A small percentage of female-headed households have previously taken housing loans, though a significant population planned to apply for housing loans in the next five years.
Personal savings, followed by formal loans, are the preferred source of housing finance among female-headed households.
Median monthly savings for the purpose of housing increased as monthly incomes increased.
The report presents the business case for women’s housing finance products. There are notable barriers to women’s housing finance, but the report argues that the market can be addressed through private sector solutions, and public sector policies.
Case studies from the three countries outlined that housing finance programs and policies tailored to women have produced positive results. In all three countries, there were some institutions and government policies that had housing finance programs tailored to women.
Additionally, institutions active in women-led Small and Medium Enterprise lending specifically reported business growth and significantly lower non-performing loans.
To appropriately address the needs of women in housing finance, the report outlined a number of proposals. Some include:
There is need to research household incomes and average loan sizes before creating new products and services to attract women’s segments of housing finance.
Lenders also ought to understand the varied goals that women hope to accomplish with housing finance. From the study, women sought to accomplish three different housing goals: home improvement, incremental construction, and purchase.
There is also need to develop products, terms, and services that meet women’s needs. These, coupled with financial literacy programs tied to housing finance would strengthen the capacity and confidence of women borrowers, while also strengthening financial institutions.
Borrowing procedures could also be simplified to improve the housing finance environment for women borrowers, and increase product accessibility.
The report therefore emphasizes the fact that the market for financial services targeted towards women is large and growing, particularly in developing countries. This market represents a significant business opportunity for financial institutions and policymakers who are willing to address patriarchal biases and pursue gender equity.
However, this is coming as housing in Nigeria generally before the rampaging COVID-19 pandemic was not ranked high on the scale of priorities for social spending.
State governments tended to rely upon local authorities to meet the problem.
And, before the current momentum by Family Homes Funds, efforts at providing low-cost rural housing have been minimal, despite the creation of the Federal Mortgage Bank of Nigeria in 1977, and shantytowns and slums are common in urban areas.
Overcrowding in urban housing is still a serious problem.
A major headache of the inner cities of Nigeria is poor quality of housing. Rural housing does not seem to be receiving attention it deserves from policy makers in spite of the fact that rural fringes of Africa’s most populous country harbour over 70% of its total rising population of 230 million people and occupy a strategic position in the socio-economic development of the country.
Unlike Apo, Asokoro, Gwarimpa, and Maitama areas those with deep pockets inhabit, there is generally a low quality of housing in the inner city. Structural component of most ‘houses’ is generally a little above minimum quality requirements. Qualities of internal facilities are equally below minimum requirements.
Yet, in 1991, a national housing policy was promulgated for possible solutions to the housing wahala in Nigeria. Thirty years on, tens of millions of Nigerians are still homeless while others like those of Jikwoyi, are living in indecent houses. It seems the major challenges of the National Housing Policy are poor implementation, corruption, bureaucracy and political instability.
Perhaps, this could be one of the reasons Vice President Yemi Osinbajo is tasking Nigeria’s National Institute for Policy and Strategic Studies (NIPSS) to unlock the mystery of failed or poorly implemented policies and projects in the country.
NIPSS is however, a policy formation centre for bureaucrats, private sector leaders, military officers, and medium-rank and senior civil servants, which was founded in 1979.
Osinbajo’s spokesman, Laolu Akande, in statement in Abuja, said that the vice president stated this when he virtually inaugurated the Senior Executive Course 43 of NIPSS.
The theme of the Course 43 programme is “Getting Things Done: Strategies for the Implementation of Policies and Programmes in Nigeria.’’
“So, your task is already well cut out for you. Perhaps Course 43 will be able to unlock the mystery of failed or poorly implemented policies and projects, but more importantly, promote a practical, nitty-gritty guide to implementing projects and policies.
“This is a body of knowledge that is desperately needed today. This year’s theme goes to the heart of what is generally considered the bane of development in Nigeria; poor implementation.
“The proverbial gap between intention and results; between policy and stated outcomes; delivering on campaign promises or even just doing what the well-articulated policy papers say.
“For many serious-minded policymakers, the frustration is the same, yes we know all about think-tanks, what we need now are do-tanks.”
Osinbajo commended the commitment and contributions of NIPSS to critical national issues through policy briefs, policy advice and other strategic interventions.
He assured staff, participants and management of the Federal Government’s continued support to the institution especially in the upgrade of facilities.
“While Government will continue to do its best to support the National Institute, I should stress that budgetary provisions alone will always be limited given competing needs and responsibilities of government.
“It is therefore imperative for NIPSS to be even more pro-active and creative in seeking alternative sources of funding’’, he said.
Osinbajo commiserated with the management and staff of NIPSS on the demise of its Director-General, Prof. Habu Galadima.
He recalled the late Galadima’s work and dedication particularly to the growth of the institute, describing him as a passionate advocate for the transformation of the Institute.
Participants of Senior Executive Course 43 were drawn from the private sector, the public service, including paramilitary organisations and the armed forces.
Present at the event were Plateau State Governor, Mr Simon Lalong, representatives of the Service Chiefs, among others.
It has even been estimated that about 85% of the urban population live in single rooms, often with eight to twelve persons per room. Living conditions are poor. In 1996, only about 27% of urban dwellers had access to piped water. Less than 10% of urban dwellers had an indoor toilet.
As of 1979, about 37% of all housing units were cement or brick roofed with asbestos or corrugated iron; 34% were mud plastered with cement and roofed with corrugated iron. In the same year, 44% of urban dwellings were rented, 37% were owner occupied, 17% were rent free, and 2% were “quasi-rented” at below-average rates.
The total number of housing units in 1992 was 25,661,000.
Women make up half the world’s population, and half of its economic potential. Yet, they are far less likely than men to own a home.
That is because women work in informal jobs, are unfamiliar with formal loan-application procedures, or are stifled by traditional cultural norms.
