An affordable housing project in Nigeria is the focus of a new partnership in microfinance between Lafarge and AFD. AFD have contributed €5 million to the microfinance bank of Lafarge’s Nigerian partner, the Lift Above Poverty Organisation (LAPO). LAPO is the largest microfinance bank in Nigeria with 900 000 clients and 323 branches. The Microfinance Program for Affordable Housing in Africa was created by Lafarge in June 2012, and aims to offer replicable, sustainable and appropriate housing solutions adapted to the needs of local population. The project will help to enable families with low incomes to finance and oversee the construction, expansion and renovation of their houses. This is in an attempt to permanently improve living conditions and meet the challenges of urbanisation in Nigeria, being the most populated country in Africa and seventh most populated in the world, with over 170 million people in 2012.
AFD has been supporting the financing of projects that improve living conditions, including in Africa, for over 70 years. The company designs and implements financial products tailored to the needs and resources of households wishing to build or improve their homes. Its local branches also enable the company to introduce finance schemes and financial expertise assistance for microfinance institutions. In this case, AFD has helped to enable LAPO to offer low-income households in Nigeria a financial solution for housing, which is tailored to their individual needs.
Lafarge has long been an expert in affordable housing, and has experience in assisting participants at all stages of their construction project. Families will receive personalised support from qualified advisors, such as help with the development of construction plans or advice from architects. Lafarge has set a target of enabling 2 million people access to affordable housing by 2020. Microfinance projects for affordable housing are already in place in Indonesia, Philippines and Zambia. Other projects are also being launched in Morocco, Sri Lanka and Bangladesh.
Adapted from press release by Rosalie Starling