Manilall Seetohul, Mauritius Housing Company. With more than 46 cities in Africa swelling to populations of a million people or more — and 17 of the world's 100 fastest-growing cities located in Africa — there is an acute need to develop housing solutions for so many urban residents. But raising the capital to meet that growing demand for housing remains a significant challenge. In 2013, the African Union for Housing Finance (AUHF) will host a conference under the theme "Raising Capital for Housing Finance.” The Africa-China Urban Initiative will organize a conference panel discussion on "Understanding (and harnessing) Chinese investment interest." Chinese investment in residential development in Africa is increasingly having an impact and demonstrating a track record of opportunity and experience. Panelists invited include Chinese investors setting out their experiences and expectations for the market and an African corporation that has received Chinese financing. http://urban-africa-china.angonet.org/content/29th-annual-conference-mobilising-capital-housing-finance

1. A NEW LANDSCAPE OF HOUSING FINANCE
INVESTORS
HOUSING INVESTMENT IN MAURITIUS
EXTENDING THE REACH DOW THE
N
MARKET
By Mr M SEETOHUL
MANAGING DIRECTOR
MAURITIUS HOUSING CO LTD

2. T ST and K Y of the Indian
he AR
E
Ocean
Area
2000 M2
Population 1.3 M

3. OVERVIEW OF KEY ECONOMIC
INDICATORS
 GDP per capita
US$9,300








Savings Rate
Investment Rate
Inflation Rate
Key Repo Rate
Growth rate
Household ownership
Owners of Bank A/Cs
Mortgage Debt to GDP
15.1%
23.0%
3.9%
4.65%
3.3%
88.9%
80.0%
12.0%

4. KEY PLAYERS IN THE HOUSING AND
HOUSING FINANCE MARKET

MINISTRY OF HOUSING AND LAND

MAURITIUS HOUSING COMPANY LTD

NATIONAL HOUSING DEVELOPMENT
COMPANY

NATIONAL EMPOW
ERMENT FOUNDATION

PRIVATE PROPERTY DEVELOPERS

BANKS AND FINANCIAL INSTITUTIONS

5. MINISTRY OF HOUSING AND
LAND

Preparation of National Development
Strategy

Provide the Framework for local
authorities

Devise and Implement housing and land
policies/program

6. Banks & Insurance Companies
*
Financing High End Clients
*
Property Development
Large housing projects
*
IRS - Integrated Resort Scheme
Foreigners with high net worth
Property priced more than
USD500,000

8. MAURITIUS HOUSING COMPANY
LTD
 Provider of Housing Finance since 1963
 Flexible housing loan products
 Interest rate as from 6.8%
 One Stop Shop
 Government Sponsored loans
 Low income group – Max MUR10,000 (USD333)
 Government Grant of 20% of loan amount up to
a maximum of MUR 33,000 (USD 1,000)
 Helped approximately 25% of households
to become house owners

10. MAURITIUS HOUSING COMPANY LTD

SPECIAL HOUSING SAVINGS AND
DEPOSITS SCHEME

PLAN EPARGNE LOGEMENT – PEL

JUNIOR PEL SAVER – JPS

TERM DEPOSIT
Housing Deposit Certificates (HDC)

ESTATE DEVELOPMENT

REGULATED BY THE BANK OF
MAURITIUS

11. ESTATE DEVELOPMENT BY
MHC
HARBOUR VIEW I
LA TOUR KOENIG
HOUSING PROJET

12. ESTATE DEVELOPMENT BY
MHC
Vuillemin Centre II
CyberVillage - EBENE
BPML/MHC Project

13. NATIONAL HOUSING DEVELOPMENT COMPANY
 Created in 1991. Low cost housing .
 Household revenue < MUR 8,500 (USD285)
 12,000 units constructed.
 500 constructed each year against a demand of 20,000 yearly
 The real challenge lies at this level.
 SITES AND SERVICES
State Land leased to households – Area 50 toises
 GRANTS
To cast SLAB - up to MUR 65,000 (USD2100)
To purchase construction materials-Max MUR55,000 (USD
1,700)

14. NHDC FLATS

15. NATIONAL EMPOWERMENT FOUNDATION
Squatting
 Set up in 2011
 Vulnerable Group
 Integrated Social Development Programme





Core housing units of 32 m2 each
Repayment starts as low as MUR 500 (US$16)
monthly
Social Contract
MHC acts as Project Manager and Collecting agent

16. NEF PROJECT AT LA VALETTE VILLAGE BAMBOUS

17. MAURITIUS CREDIT INFORMATION
BUREAU (MCIB)

A central Credit Information Bureau is
managed by the Bank of Mauritius.

Forty three participants





18 Banks
18 Leasing and Insurance Companies
5 Non Bank Financial Institutions
3 Utilities
MHC and NHDC form part of the system

18. FUNDING

19. FUNDING
Funds for financing mortgages - a challenging
issue.
 Borrowing from foreign funding agencies






USAID
European Development Fund
International Bank for Reconstruction and Development (IBRD)
W
orld Bank through the Government of Mauritius
Common W
ealth Corporation
Borrowing from local banks with government
guarantee
 Facilities no more available


20. FUNDING

Debentures

Deposits from General public

Internally Generated Funds

21. LEGAL FRAMEW
ORK FOR
CREDIT
Borrowers Protection Act 2007
Bom guidelines
Basel III
Safeguards for the interests of both lenders &
borrowers
Encourages “Responsible Credit”

22. W FORW
AY
ARD
Government Strategy



CSR Fund - Culture of Corporate Citizenships
Companies to contribute 2% of their book profit
Approved program – Housing included
Housing Development Trust (HDT)
 Boost social housing-Low and Lower income groups


Funded by HDT, Government and Beneficiary

23. W FORW
AY
ARD
 HOUSING
INVESTMENT
 A NICHE MARKET FOR INVESTORS
Housing key growth area in growing economies
Meet Investment Expectations – Good return
Easily segmented market

24. W FORW
AY
ARD

CHALLENGES

Managing risks

Maintaining incentives

Securitisation

25. CONCLUSION
HOUSING FINANCE
AN ENGINE OF DOMESTIC GROW
TH
HOUSING INVESTMENT
A NEW PROFITABLE SOCIAL
INVESTMENT

26. THANK YOU