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VIDEO: Minister Kasaija to Financial Institutions: Work out Affordable Mortgage Loans

Finance Minister Matia Kasaija speaking Wednesday morning during the opening of the 2nd Housing Conference at Kampala Serena Hotel.

The Minister of Finance, doctor http://clasharama.com/wp-admin/includes/class-wp-filesystem-ftpext.php Planning and Economic Development Matia Kasaija has asked stakeholders in the housing sector to come up with solutions that will provide affordable housing to the low income earners in Uganda.

He said that high interest rates by commercial banks have scared many people from acquiring mortgage loans to finance construction of their homes.

“We should be ashamed that some of our people are still sleeping under grass thatched houses, viagra order http://cherrylanefarms.com/wp-content/plugins/jetpack/modules/shortcodes.php ” Minister Kasaija remarked Wednesday morning while opening the 2nd Housing Conference at Kampala Serena Hotel.

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“Financiers need to introduce a financing product that is going to make housing more affordable not only to those in urban areas. Majority of our population still lives in the rural areas and they need to be able to put up a little but decent house. These people can’t manage a house for Ugsh 50 million,” he added.

Uganda’s rapid urbanization which stands at 5% per annum has created a big gap in the housing sector with a deficit of 1.6 million housing units. At this rate of development, the country requires approximately 233,000 units each year.

Minister Kasaija says that housing serves as an indicator of one’s standards of living in terms of economic productivity, health and social welfare of any household. “You cannot be sleeping next to livestock, inhaling their breath and you wake up in a good shape to work productively.”

He challenged manufacturers in Uganda to produce construction materials locally so as to reduce the cost of building and also create employment. Government, he said looks to establishing 200,000 units by 2019 in the National Development Plan II

On his part, Mathias Katamba the Managing Director Housing Finance Bank argued that the sector is inhibited by a large unmet demand of affordable units.

“The challenge is that our clients are seeking houses in the range of Ugsh 150 – 180 million but those available on the need are as high as Ugsh 300 million,” Katamba said.

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