Africa is experiencing an explosive demographic growth combined with a rapid urbanization. The African population is growing at the rate of 2.4% per year. The rapid increase in population is combined with a strong urbanization. It is also estimated that by 2030, 50% of Africans will live in cities. Consequently, Africa is expected to be the 2^nd fastest growing population urbanization after China by 2030.

This phenomenon has caused the continent as a whole to face a huge urban challenge. In most African countries, the delivery of urban housing cannot be met by the supply. Currently, 62% of the population (191million people) living in Africa’s cities lives in informal housing, where basic services are poor or non-existent; this tabulates to about 32 million households. An additional 14 million housing units per annum is therefore needed to accommodate this increasing demand.

In Kenya, for instance, 60% of the urban population resides in what is considered inadequate housing. The Government of Kenya estimates that 150,000 housing units would be required in order to meet the demand. However; Less than 30,000 units are supplied each year, which leaves a deficit of 120,000 housing units per year.

In West Africa the situation is not different than in Kenya.  For example, Ghana’s annual demand for housing currently stands at 120,000 units per annum, yet only 42,000 units are supplied per annum, which only meets 35% of the demand.