Government, partners sign MoU to boost affordable housing

The government has signed a memorandum of understanding (MoU) with FDH Plc, Habitat for Humanity Malawi and the Centre for Community Organisation and Development (CCODE) to strengthen efforts to address Malawi’s housing shortage.

Minister of Lands, Housing and Urban Development Chimwemwe Chipungu signed the agreement with the three partners on Wednesday, describing the commitments as a significant step towards improving access to decent and affordable housing.

Chipungu said the government was working with stakeholders to address barriers to housing development, including the high cost of construction materials, limited access to land and the impact of climate change.

He highlighted FDH Plc’s commitment to support the construction of 250,000 houses, equivalent to approximately 25,000 houses annually.

“Habitat for Humanity Malawi will build 500,000, and CCODE will also build 500,000 for the year. This is a good development, and we greatly appreciate the gesture they have made towards Malawians,” Chipungu said.

He said the initiative would cover cities across Malawi, adding that the government and its partners were also exploring the development of smart cities to address challenges associated with rapid urbanisation.

Chipungu said the ministry was engaging stakeholders to identify ways of reducing construction costs while promoting the development of houses that could withstand extreme weather conditions.

Habitat for Humanity Malawi Chief Executive Officer Rex Chapota said the organisation would contribute financial resources, technical expertise and partnerships to support the initiative.

Chapota disclosed that the organisation had committed US$2.5 million towards its programmes in Malawi during the 2026–2027 financial year.

He also revealed that constructing 100 disaster-resilient houses would require an estimated US$2 million, underscoring the financial demands associated with providing safe and sustainable housing.

Chapota said approximately 75 per cent of people living in urban areas were residing in informal settlements, where access to decent housing and essential services remained a major challenge.

He commended the ministry for bringing stakeholders together to promote housing development and improve conditions in informal settlements.

FDH Plc Managing Director Noel Mkulichi said the bank had joined the initiative after recognising the difficulties many Malawians face in accessing affordable housing.

Although Mkulichi declined to disclose the amount the bank would invest in the planned projects, he reaffirmed FDH Plc’s commitment to supporting government efforts to address the housing deficit.

The multi-stakeholder workshop on adequate and affordable housing in Malawi was held under the theme, “Strengthening Partnerships for Adequate and Affordable Housing, Inclusive Slum Upgrading, and Sustainable Development.”