Select Africa (exited)
Theory of Change
Descripition
Established in 1999, Select is a retail financial services group focusing primarily on the extension of retail unsecured, incremental housing microfinance, education loans and consumer loans. Select Africa is a subsidiary of African Alliance and has offices in 18 countries.
SEDF’s initial loan was for Select Africa Malawi, which we extended to Select Kenya in 2020.
Challenge and Context
Incremental housing construction and financing greatly decreases the economic barriers to entry for home ownership as compared to traditional mortgage finance which seldom exists in most African markets. Most people in Africa’s rapidly growing towns and cities live in informal settlements in self-built structures, only a small percentage can get a traditional mortgage.
Expected Outcome
- Deployment of 45,000 total loans (including roll-overs) with a total value of $40 million dollars over seven years.
- Extension of technical advice and product sourcing for lower-cost building materials.
- Increased access to housing for low-income populations.
Impact
When SEDF exited Select Africa in 2023, Select Africa had exceeded targets and disbursed over 180,000 loans.
Why SEDF?
SEDF made a number of investments in Africa aimed at promoting housing finance alternatives to mortgage lending. This market continues to grow, making it easier for low-income communities to access affordable housing.