Egypt’s housing programme brings more than half of beneficiaries into banking – official

More than half of beneficiaries of Egypt’s Housing for All Egyptians Programme have dealt with banks for the first time, head of the country’s social housing fund said Wednesday, highlighting the programme’s role in expanding access to formal financial services.

Mai Abdel Hamid, CEO of Egypt’s Social Housing and Mortgage Finance Fund (SHMFF), said the programme had evolved from an initiative initially involving four banks into one supported by 31 banks and financing companies.

She made the remarks during a virtual panel titled From Housing to Inclusion: How Affordable Housing Finance Drives Financial Inclusion, held as part of Financial Inclusion Week (FIW), organised by the Center for Financial Inclusion (CFI).

President Abdel Fattah El-Sisi launched the Housing for All Egyptians initiative in 2014 with a target of providing 1 million housing units, with the SHMFF tasked with overseeing the programme, Abdel Hamid said.

The programme initially faced resistance from banks and potential beneficiaries, partly due to concerns stemming from previous housing programmes, she said.

The number of participating banks and financing companies has since risen to 31, while the programme’s default rate has fallen to about 0.5 per cent, Abdel Hamid said, adding that beneficiaries were generally committed to paying their instalments on time.

The fund worked with the Central Bank of Egypt (CBE), Finance Ministry, the New Urban Communities Authority (NUCA), and the Housing and Building National Research Center (HBRC) to create a system enabling eligible citizens to obtain homes through long-term financing at reduced interest rates, she said.

It also worked with international institutions, including the World Bank, which provided the fund with a $1 billion loan, and the International Finance Corporation (IFC), she added.

The Housing for All Egyptians programme targets not only government employees but also private-sector workers and self-employed people. The fund introduced new tools to strengthen the creditworthiness of people without formal employment, Abdel Hamid said.

More than 50 per cent of beneficiaries have dealt with banks for the first time, she said. Women accounted for 24 per cent of beneficiaries, while people with disabilities were allocated 5 per cent of the housing units offered. Self-employed workers accounted for 25 per cent of beneficiaries, Abdel Hamid said.

Green housing, rental options

The fund has also sought to broaden housing options for low-income citizens through its Green Architecture Initiative, launched in 2020 to provide environmentally friendly housing while reducing energy and water consumption and carbon emissions.

More than 41,000 green housing units have received certification under Egypt’s Green Pyramid Rating System (GPRS), while more than 14,000 units have obtained international EDGE certification, Abdel Hamid said.

The fund has also launched a subsidised rental programme offering about 15,000 units ranging from 75 to 90 square metres, with monthly rents starting at 1,500 Egyptian pounds.

The fund is also seeking greater private-sector involvement in building affordable housing. It has offered land plots to private developers and completed the opening, selection and award procedures ahead of a new housing offering expected by the end of 2026, Abdel Hamid said.

She described Egypt’s experience in providing adequate housing to low-income citizens as unique globally, citing reports from international and regional institutions.

Affordable housing finance is a key driver of financial inclusion, Abdel Hamid said, calling for greater support for affordable housing and financing mechanisms for people who face difficulties accessing formal credit.

She also stressed the need for targeted support for the most vulnerable groups while maintaining programme sustainability and limiting risks. Stronger governance and an appropriate regulatory framework could help encourage greater participation by banks and the private sector, she said.