AFI and Habitat for Humanity partner to expand sustainable housing finance
The Alliance for Financial Inclusion (AFI) and Habitat for Humanity International’s Terwilliger Center for Innovation in Shelter recently agreed to collaborate for the promotion of inclusive, affordable and sustainable housing finance (IASHF). This strategic collaboration aims to generate valuable knowledge that will ultimately contribute to a more inclusive and sustainable financial ecosystem globally.
“AFI is committed to empowering policymakers to increase access and usage of quality financial services for the underserved through the formulation, implementation, and global advocacy of sustainable and inclusive policies.” says Dr. Alfred Hannig, AFI Executive Director
“We look forward to working with Habitat's Terwilliger Center to help the market develop new solutions for low-income populations.”— Dr. Alfred Hannig, AFI Executive Director
Complex challenges are found on both the supply and demand sides of sustainable housing finance. Supply side financing focuses on ensuring sufficient green, affordable housing materials and shelter solutions are available in markets where low-income people and vulnerable populations live and work. On the demand side, those populations need affordable and appropriate financing to purchase homes or, more commonly, for incremental building and home improvements. Products may include savings and loans, digital financial products, and insurance.
“Access to finance is an important factor in supply and demand, particularly in relieving people's constraints in the home improvement process: buying building materials and paying laborers, generally in the informal market.”— Patrick McAllister, Director of Finance, Policy, and Regulation at Habitat's Terwilliger Center.
“One big challenge is ensuring that banks and other financial institutions can accommodate informality in their lending systems.” adds Patrick McAllister, Director of Finance, Policy, and Regulation at Habitat’s Terwilliger Center.
Habitat for Humanity staff and AFI members stand with Professor Marja Hoek-Smit (center) after a masterclass on IASHF in Zanzibar, Tanzania
Marking the new collaboration, Terwilliger Center Advisory Board Member Professor Marja Hoek-Smit taught a master class it to representatives of ten central banks, which make up the AFI housing task force. The master class provided participants a solid foundational understanding of the role of a supportive enabling environment in promoting affordable housing finance — from macroeconomic stability to consumer protection. Held in conjunction with the recently concluded 40th annual African Union for Housing Finance (AUHF) conference in Zanzibar, Tanzania, the class was followed by the participation of task force members in a policy round table with ministers, representatives of Development Finance Institutions, and other public sector housing finance institutions.
“This is the Terwilliger Center’s first collaboration with AFI, and the feedback has been overwhelmingly positive. We look forward to working with AFI in the policy and regulatory space to ensure that the enabling environment for inclusive, affordable and sustainable housing finance is supportive of market actors, allowing them to serve low-income populations,” concludes McAllister.