Pan-African housing development organisation, Landlur, is targeting Africans in the Diaspora to enhance the real estate market across the continent, with Nigeria being its current primary focus.
Speaking to journalists at a press conference in Abuja on Monday, where he shared insights on innovative solutions for addressing Africa’s housing deficit, the CEO and founder of Landlur, Mr. Dipo Adesina, said over 170 million people of African descent that live all over the world present a formidable resource pool for the continent’s infrastructure development, including housing.
Adesina said that the idea of Landlur was birthed from seeing Africans in the diaspora wanting to invest back home but not having a trusted partner to work with especially since many had relied on family members and had been disappointed on many occasions.
“Landlur’s goal is to bridge the gap between those in Diaspora and the opportunities back home, and real estate is one of the avenues to do that.
“Landlur is Africa’s 1st real estate platform that is focused on connecting Africans in diaspora with profitable real estate opportunities in Africa as a means to boost the housing deficit of Africa, while building wealth at the same time,” he stated.
African diaspora populations are growing, as are their savings and the scale of resources available to reinvest in their countries of origin.
“The World Bank estimates Africans in the diaspora save about $53 billion per year and, in 2021, recorded remittances reached over $95.6 billion sent to and within Africa,” he added.
Top 10 highest recipients of remittance inflows in Africa in 2021 included Nigeria ($19.2 billion), Ghana ($4.5 billion), Kenya ($3.7 billion), Senegal ($2.7 billion), Zimbabwe ($2.0 billion), Democratic Republic of Congo ($1.3 billion), Uganda ($1.1 billion), Mali ($1.1 billion), South Africa ($900 million), and Togo ($700 million).
Africa’s top remittance recipients as a proportion of their economies are South Sudan, Lesotho and Gambia with 35%, 21% and 15% of GDP respectively, coming from remittances, according to World Bank statistics.
“Part of our long term strategy is to tap into the diaspora to enhance housing delivery across the country, while our short term plan is to help our clients secure lands in strategic locations that can be used as a form of investment. Many of the Africans in the diaspora have dreams of doing something back at home and our goal is to help them make their dreams a reality,” Mr Adesina noted.
Africa is considered the continent with one of the most rapidly growing urban populations, with over 60% of the urban population in sub-Saharan Africa (SSA) estimated to live in areas categorised as slums and informal settlements.
According to the UN, it is projected that the number of Africa’s urban residents will increase to 1.5 billion by 2050, and that Africa will pass the tipping point of 50% urban population around 2035.
Currently, Africa has a housing deficit, which accounts for at least 56 million units.
“This housing deficit is a significant indicator of Africa’s growing infrastructure gap, which can be attributed to lack of sufficient capital to finance the delivery of affordable housing projects, lack of bankable projects, and inefficient risk allocation mechanisms. This is why it’s important to incorporate the diaspora into the affordable housing financing mix.
“The African Development Bank estimates that Africa’s infrastructure needs amount to $130-170 billion a year, with a financing gap in the range of $68-$108 billion.
“To date, less than half of this amount is being mobilised, leaving a financing gap in the range $68-$108 billion,” Adesina said.
He explained that all Landlur’s
estates were going to be strategically located in areas where schools, hospitals, airports, among other amenities, are within reach.
“Our lands are thoroughly vetted to ensure that they are free from any government acquisition.
“For more information, you can visit our website on www.Landlur.com,” he stated.