Working with the Government of Rwanda, AFFORD is developing its First RemitPlus™Rwanda Diaspora Bond (RRDB-1) to fund affordable housing for key workers in Kigali, Rwanda.
RRDB-1 is an important element of the wider AFFORD Diaspora Finance (ADF) programme which aims to expand, diversify and structure diaspora investment into Africa. ADF is currently funded by Comic Relief and UKAid through the Common Ground Initiative (CGI).
RRDB-1 intends to offer an investment opportunity to African diaspora individuals and their friends in order to generate profits while creating a direct impact on the Rwandan social economy. The £5-£10 Million bond will fund mixed units of 2 & 4 bedroom affordable houses available in priority to key workers such as teachers, nurses, civil servants etc etc..
Rwanda currently faces rapid urbanization at a national rate of 17.2% and high levels of population growth. A recent report conducted by The City of Kigali notes that housing demand in Kigali is very high with new home construction at around 1,000 units per year in comparison to demand at 31,000 units per year. Statistics also show that Rwandans on an average salary are priced out of the traditional housing market due to costs of new build houses being 95% higher than an average Rwandan annual salary.
Through RRDB-1, AFFORD aims to:
- Produce a blended finance investment model to reduce capital cost and fund sustainable social enterprise housing construction in Rwanda.
- Introduce low cost affordable housing for key workers in Rwanda.
- Create an inclusive supply chain – from brick manufacture, on-site training, estate management and sales.
- Provide modern, affordable housing to 400 families (at least 800 people)
- Produce innovative and cost-effective rapid build design.
- Create jobs- (through the construction of units, brick building and estate management).
- Provide the diaspora with the opportunity to invest, resulting in high levels of social impact and returns on capital.
RRDB-1 will be endorsed by the Government of Rwanda and will be denominated in Rwanda Francs on the Rwanda Stock Market.
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