WEBINAR SERIES « Leveraging African Pension Funds for Housing Finance in Africa » WEBINAR n ° 1 Welcome! African Pension Funds and Housing We will begin shortly Opportunities and Challenges 22nd FEBRUARY 2018 Webinar n°1 - African Pension Funds and Housing Opportunities and Challenges
Moderator Mr David Ashiagbor , Coordinator, Making Finance Work for Africa (MFW4A) Partnership Speakers Dr. Alfred Shem Ouma , Chief Manager, Research and Strategy, Retirement Benefits Authority, Kenya Ms Bopelokgale Soko , Director, Retirement Funds, Non-Bank Financial Institutions Regulatory Authority, Botswana Mrs Akosua Nelson-Cofie , Portfolio Manager, Social Security and National Insurance Trust, Ghana Mr Dave Uduanu , Managing Director, Sigma Pensions Nigeria and Chair, Africa Pension Funds Network 2 22nd FEBRUARY 2018 Webinar n°1 - African Pension Funds and Housing Opportunities and Challenges
Webinar Housekeeping Items ►Today’s webinar is scheduled to last 1 hour ► To ensure the highest quality of experience, all participants will be muted ► Questions can be submitted via the “Chat” or the “Q&A” box ► Slides and a recording of this presentation will be circulated after the session ► Message the organizer (MFW4A Secretariat) for any issues using the “Chat” box ►Don’t forget to fill out the survey that appears automatically after the session 3 22nd FEBRUARY 2018 Webinar n°1 - African Pension Funds and Housing Opportunities and Challenges
Publish, share and exchange on social networks with the following hashtags: #HousingPensionsAfrica @MFW4A @CAHF_Africa 4 22nd FEBRUARY 2018 Webinar n°1 - African Pension Funds and Housing Opportunities and Challenges
OUTLINE 1. About the Making Finance Work for Africa (MFW4A) Partnership 2. About the Centre for Affordable Finance in Africa (CAHF) 3. Strategic partnership: MFW4A & CAHF 4. Drivers of Pension Fund Growth 5. Overview of Pensions in Africa 6. Pension Investment Portfolio 7. Housing Market Landscape 8. Barrier to long-Term Investments by African Pension Funds 9. Discussion points / Q&A 10. Save the dates: Upcoming Webinars 5 22nd FEBRUARY 2018 Webinar n°1 - African Pension Funds and Housing Opportunities and Challenges
1. ABOUT THE MAKING FINANCE WORK FOR AFRICA (MFW4A) PARTNERSHIP ► MFW4A members share a common vision of innovative, sustainable, competitive and diverse African financial systems, providing near universal access by 2030, and offering a full range of products and services for the continent. ► The Partnership’s mission is to be the reference platform for advocacy, knowledge sharing and cooperation on financial sector development in Africa. Financial Financial Long-Term Stability & Inclusion Finance Regulatio n Knowledge Management 6 22nd FEBRUARY 2018 Webinar n°1 - African Pension Funds and Housing Opportunities and Challenges
1. ABOUT THE MAKING FINANCE WORK FOR AFRICA (MFW4A) PARTNERSHIP MFW4A’s objective is to support the development of the affordable housing market in Africa Knowledge Management and Networking and Advocacy Project Support and Capacity Building Research • Build capacity on housing finance • • Identifying and disseminating Advocacy for the development of operations across the value chain • relevant interventions and the housing finance market «Deal-making» - Facilitating • alternative models Support peer-learning and business opportunities, strategic • Produce original research that knowledge exchange on key support for programmes addresses market constraints and issues in the sector knowledge gaps Outputs: Webinars, Knowledge Outputs: Networks, High-level Outputs: Trainings, Marketplace Briefs, Case Studies conferences and roundtables Partners Outcomes Improved coordination among various stakeholders in the housing finance value chain Extent of use of MFW4A outputs in supporting the development of an enabling environment in the housing delivery chain Improved knowledge & capacities of policy makers and practitioners to engage and invest in affordable housing markets Opportunities for investors to identify and structure viable project pipelines for housing 7 22nd FEBRUARY 2018 Webinar n°1 - African Pension Funds and Housing Opportunities and Challenges
2. ABOUT THE CENTRE FOR AFFORDABLE HOUSING FINANCE (CAHF) ► CAHF is an independent think tank based in Johannesburg, South Africa established in May 2014. The vision of CAHF is an enabled affordable housing finance system in countries throughout Africa, where governments, business, and practitioners work together to provide a wide range of housing options accessible to all. ► CAHF ’s mission is to make Africa’s housing finance markets work , with special attention to access to housing finance for the poor , through the dissemination of research and market intelligence, the provision of strategic support, and ongoing engagement in both the public and the private sector; supporting increased investment, cross-sector collaborations and a market-based approach. ► The overall goal of our work is to see an increase of investment in affordable housing and housing finance throughout Africa : more players and better products, with a specific focus on the poor. ► CAHF’s work extends across the continent, and it is supported by and collaborates with a range of funders and partners. ► CAHF key funders are Financial Sector Deepening Africa (FSD Africa) and the French Development Agency (AFD) . For more information, visit CAHF website: http://housingfinanceafrica.org/ 8 22nd FEBRUARY 2018 Webinar n°1 - African Pension Funds and Housing Opportunities and Challenges
3. STRATEGIC PARTNERSHIP: MFW4A & CAHF ► Shared interest in deepening the understanding housing finance markets in Africa; ► Recognise the mutual advantages of collaboration with a broader network of organisations with overlapping objectives and programmes; ► Develop a set of activities and knowledge outputs focused on: i. Exploring innovation in housing development and finance; ii. Supporting housing finance market development ► Activities: i. Joint Working Groups and investment vehicles (i.e. Housing Investment Indicators, Pension and Housing, Marketplace) ii. Case studies and knowledge briefs (i.e. Potential solutions for bond markets, private equity and affordable housing) iii. Webinar Series (i.e. REITs, Rental in Africa, Housing Investment Landscape) 9 22nd FEBRUARY 2018 Webinar n°1 - African Pension Funds and Housing Opportunities and Challenges
4. DRIVERS OF PENSION FUNDS GROWTH MACROECONOMICS REGULATORY ENVIRONMENT • • Privatisation of pension funds Compelling growth story, expansion of middle • class Mandatory retirement contributions • • Permitted pension fund allocations to Prudent fiscal policies reduce bond spreads • Low interest rates fuel search for yield alternative investments AuM Growth DEMOGRAPHICS ALTERNATIVE INVESTMENTS • • Greater awareness and understanding of new Young , rapidly growing population… • … fuels steady increases in pension fund AUM asset classes • • Demand for access to unlisted companies Younger population has greater risk appetite • Emergence of proven track records 10 22nd FEBRUARY 2018 Webinar n°1 - African Pension Funds and Housing Opportunities and Challenges
5. OVERVIEW OF PENSIONS IN AFRICA CASE STUDY: Nigeria AuM Growth / Nigeria ($bn) 35 30 30 27 24,9 25 20 19 20 16,62 15 15 13 9,6 10 7 5 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Source: National Pension Commission 11 22nd FEBRUARY 2018 Webinar n°1 - African Pension Funds and Housing Opportunities and Challenges
5. OVERVIEW OF PENSIONS IN AFRICA CASE STUDY: Kenya AuM Growth Rates / Kenya ($bn) 9 8,34 8 7,13 7 6,02 6 4,72 5 4 3,43 3,40 3 2,46 2,17 2 1 0 2008 2009 2010 2011 2012 2013 2014 2015 Source: Retirement Benefits Authority 12 22nd FEBRUARY 2018 Webinar n°1 - African Pension Funds and Housing Opportunities and Challenges
6. PENSION INVESTMENT PORTFOLIO Nigeria Pension Industry Portfolio - 30 September 2017 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Domestic Ordinary Shares Foreign Ordinary Shares FGN Securities State Govt. Securities Corporate Debt Securities Supra-National Bonds Local Money Market Securities Foreign Money Market Securities Open/close-End Funds Reits Real Estate Properties Private Equity Fund Infrastructure Fund Cash & Other Assets 13 22nd FEBRUARY 2018 Webinar n°1 - African Pension Funds and Housing Opportunities and Challenges
7. HOUSING MARKET LANDSCAPE Projected Population by Major Region 2010-2100 (In Millions) HOUSING DEFICIT & INVESTMENT POTENTIAL Nigeria Current housing shortage estimated at 17 million units with funding requirement of $363bn Ghana Shortage estimated at 1.7 million units with funding requirements between $51.8bn and $52.5bn Kenya Shortage estimated at 2 million units per annum 14 22nd FEBRUARY 2018 Webinar n°1 - African Pension Funds and Housing Opportunities and Challenges
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