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UK Firm In $16M Deal To Build 350 Houses In Uganda

UK Firm In $16M Deal To Build 350 Houses In Uganda

From East African Business Weekly

The National Housing and Construction Company (NHCC) has signed a shareholder agreement with Henley Homes Plc to develop 350 housing units along the shores of Lake Victoria at Luzira near Kampala.

The British company is joining the NHCC in this $16 million project using alternative technology and completion will be after 18 months.

The Ugandan firm, partly owned by Libyan government interests, will provide the land while Henley Homes will handle the construction.

Construction is expected to commence in July this year.

Ambassador Agnes Kadama Kalibala, the Board Chairperson at NHCC said last week they had initially planned to set up about 190 housing units on the 14 acres. However due to Henley Homes’ new technology and cost effective business model, 350 units will be built.

“Instead of the conventional brick and mortar, Henley Homes is introducing alternative cheaper technology. If it was our usual method of building, we would have spent Ush600 million (about $194,000) on putting up each unit. But now, we’ll be using Ush100 million ($32,000) less,” she said. She said this will provide a better return on investment for both companies.

A recently released survey from the Uganda Bureau of Statistics shows that there has been a slight improvement in housing. It however states that there is still a housing deficit of 550,000 units.

About 160,000 of this backlog is in urban areas. Kampala alone has a housing deficit of 100,000 units.

Read more at East African Business Weekly