Introducing Micro Housing Mortgage Product – Chiperegano Chanyumba for low income groups.

Access to affordable housing finance remains a major constraint for low-income households in Malawi, as conventional mortgage products are often inaccessible due to strict eligibility requirements. This reform is necessary to bridge the financing gap by introducing a product tailored to the realities of informal and low-income earners. It will expand financial inclusion and provide opportunities for households to invest in decent housing.

In addition, the reform will support sustainable housing development by encouraging incremental building and improving construction standards. By combining financing with technical support and financial literacy, it will reduce risks associated with poor construction and loan defaults. This integrated approach will enhance the long-term impact and sustainability of housing programs.

The Micro Housing Mortgage (Chiperegano cha Nyumba) is a re-engineered programme that has been developed to bridge the gap in the shortage of decent, affordable, and resilient housing, particularly in rural areas. It is a continuation of the Decent and Affordable Housing Subsidy Project (DAHSP), also known as the Cement and Malata Project which was introduced in 2014. The initiative has been revived and modified to counter challenges including high loan default rates, poor housing quality, inactive rural housing centres, and a shortage of trained artisans.