Habitat for Humanity, an International Non-Governmental Organisation, on Monday organised a workshop for stakeholders in the microfinance sector to bring them on board in offering housing microfinance to the poor.
The workshop was to engage the financial service providers, including commercial banks, rural banks, microfinance banks and the savings and loans companies, to deliberate on how best to use the traditional microfinance principles for housing.
Mr William Asamoah Abetia, Housing Finance Manager, Habitat for Humanity, Ghana, said the housing microfinance was to provide financial services to low income people across the country to improve or establish their homes.
He said it would create the opportunity for the very poor in society who could not have access to huge loans from banks as well as savings and loans companies to walk boldly to the bank for finance to build and repair their houses.
Mr Abetia said it had become very difficult for people to access the banks to address their housing needs adding that they were partnering financial service providers to introduce the concept of housing microfinance to help address the housing needs of people.
Mr Ezekiel Esipisu, Housing Finance Director, African and Middle East Office, South Africa, said the housing microfinance was a subset of microfinance that served the needs and preferences of housing for low income population.
He said this was done through the design of microfinance products and housing access service, for sustainable and affordable housing, alignment with the principles of microfinance and recognizing the socio-economic characteristics of the target population.
He said two thirds of the worlds emerging market population lived in substandard shelter, adding; "in Ghana, rapid urbanization is catching up on us and there is going to be a more pressing need for shelter."
Mr Esipisu said the housing microfinance was about home improvement and progressive building and would provide a basis for people to access loans on flexible terms, adding that it was very different from mortgages.
The Habitat for Humanity is an international NGO established in 1987 in Ghana to build affordable homes for the less privileged in society, especially those who cannot access funds from the universal banks.
The organisation is also to create a world where every one has a descent place to live, and has so far built 8000 homes in nine regions of the country, excluding the Upper West Region.