The risks of private sector investment in affordable housing development: An Afrocentric perspective

Chioma Okoro, Abel Olaleye, Oluwatobi Owojori

Research output: Contribution to journalArticlepeer-review

Abstract

The state delivery of affordable and sustainable housing continues to be a complicated challenge in Africa, and there is a need to encourage private sector participation. As a result, this study examines the risks associated with private sector participati on in affordable housing and supporting infrastructure investment and the strategies towards mitigating the risks from an Afrocentric perspective. The evidence from a systematic literature review was coupled with the opinion of an international expert panel to address the paper’s aim and provide recommendations for developing improved housing and supporting infrastructure in Sub-Saharan Africa. The review outcomes and the qualitative data from the panel discussion were analysed using thematic analysis. The results revealed that market dynamics, land supply and acquisition constraints, cost of construction materials, unsupportive policies, and technical and financial factors constitute risks to affordable housing in the region. Mitigation strategies include leveraging joint efforts, strengths, and resource bases, increasing access to land and finance for private sector participation, developing a supportive government framework to promote an enabling environment for easy access to land acquisition and development finance, local production of building materials, research and technology adoption. In line with the United Nations (UN) Agenda 2030 targets and principles, reforms are required across the housing value chain, involving the private sector and community. Application of the study’s recommendations could minimise the risks of affordable housing delivery and enhance private sector participation.

Original languageEnglish
Article number2691
JournalJournal of Infrastructure, Policy and Development
Volume8
Issue number1
DOIs
Publication statusPublished - 2024

Keywords

  • Africa
  • Afrocentric
  • affordable housing
  • public private partnerships
  • risks
  • sustainability

ASJC Scopus subject areas

  • Development
  • Social Sciences (miscellaneous)
  • Urban Studies
  • Public Administration

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