The "Housing for All Egyptians" initiative, launched in 2014, has made significant strides in promoting financial inclusion, with over 50% of its beneficiaries banking for the first time. According to Mi Abd El-Hamid, CEO of the Social Housing and Real Estate Finance Fund, this achievement reflects the program's role in integrating new segments into the banking sector. The initiative aims to provide one million housing units, with the fund overseeing its implementation.
The program has garnered significant participation from the banking sector, with 31 banks and financing companies currently involved, up from just four at its inception. Abd El-Hamid attributed this growth to the fund's commitment to adhering to the terms outlined in various tender documents. She noted that the default rate has decreased to around 0.5%, indicating beneficiaries' commitment to repaying installments on time.
The Social Housing and Real Estate Finance Fund has collaborated with various domestic and international entities to create a comprehensive system facilitating citizens' access to affordable housing. This includes partnerships with the Central Bank of Egypt, the Ministry of Finance, and the New Urban Communities Authority. Internationally, the fund has worked with institutions like the World Bank, which provided a $1 billion loan.
The initiative is not limited to government sector employees, but also extends to private sector workers and freelancers. To enhance creditworthiness for non-formal sector workers, the fund has developed new tools. Notably, 24% of beneficiaries are women, while 25% are freelancers. Additionally, 5% of the housing units offered are allocated to citizens with disabilities.
The fund is diversifying options for low-income citizens, enabling them to access suitable housing. In 2020, it launched the "Green Architecture" initiative, providing environmentally friendly housing units that consume less energy and water. Over 41,000 green housing units have received the "GPRS" certificate, while more than 14,000 units have obtained the international "EDGE" certificate.
To cater to those unable to afford ownership, the fund has introduced a new rental program comprising 15,000 subsidized housing units. These units have areas ranging from 75 to 90 square meters and rental values starting at 1,500 Egyptian pounds. The fund is also working with the private sector to develop low-income housing units by offering land plots to real estate developers.
Egypt's experience in providing affordable housing for low-income citizens is considered unique globally, as acknowledged by international and regional institutions. The program's success in promoting financial inclusion and providing affordable housing underscores the importance of government initiatives in addressing housing needs.
Key points
- Over 50% of "Housing for All Egyptians" initiative beneficiaries are banking for the first time.
- The initiative has involved 31 banks and financing companies, with a default rate of around 0.5%.
- The program provides housing units for various groups, including women, freelancers, and citizens with disabilities.
