NAIROBI, May 30 (Xinhua) -- African governments should enact friendly legislations to encourage private sector investments in modern housing for the middle to low income population segment, policymakers said on Thursday on the sidelines of the first UN-Habitat Assembly underway in Nairobi.

Peya Mushelenga, Namibian minister for urban and rural development said that harnessing private capital is key to boost access to affordable houses in Africa's fast growing cities and rural towns.

"The housing deficit facing our urban population could be solved through mobilizing resources from domestic private sector and cooperatives to support construction of decent but affordable homes," said Mushelenga.

He said that regulatory incentives coupled with improved land use practices and adoption of appropriate technologies is key to promote investments in decent shelter in Africa's cities.

"Government subsidies and innovative credit schemes for low income earners have proved to be effective tools for expanding access to affordable homes in our cities," said Mushelenga.

He proposed investments in new building technologies to support construction of green and cheaper homes for low income urban dwellers.

Affordable housing was a key highlight of the inaugural UN-Habitat Assembly attended by more than 3000 delegates including four presidents, policymakers, business executives and innovators from 116 countries.

Lee Kinyanjui, chairman of Kenyan council of governors' housing and urban development committee said that smart policies are required to facilitate private sector investments in affordable homes for Africa's urban dwellers.

"As African cities grow at a rapid pace, the priority for governments is to explore innovative business models to reduce the number of people who lack access to decent and budget friendly homes," said Kinyanjui.

He said that Kenyan municipal authorities have adopted international best practices to solve the urban housing crisis that is a threat to political stability and social cohesion.