We recently completed due diligence with K-REP Development Agency and their subsidiary Makao Mashinani (MML) Limited on a project to fund low-cost housing for people moving out of the slums. The project is together with Akiba Mashinani Trust and Slum Dwellers International.
Mads and I recently met with Aleke Dondo, managing director of K-REP Development Agency and MML, and Golicha Sora, General Manger MML, and shook hands on the successfully completed due diligence. We will now put the actual legal agreements in place and hope to have the first loans on the platform early next year. The initial pilot project will be for 100 loans. The long-term potential for projects like this in East Africa is enormous. So is the social impact.
The houses cost EUR 2-3,000 to build the first two stories which include a kitchen a sitting room a bed room and a toilet. They can be later expanded with an additional floor with two more bedrooms. The loans will be secured by the land and the house itself. MML assists the slum dwellers in organizing themselves into groups to buy the land and build the houses thereby achieving economies of scale. The typical owner is a woman with a job or a small business who wants to move away from the slums but can’t afford to.
Here are some pictures taken during a recent field visit by MYC4 staff to one of the housing projects.