Housing Finance in Cabo Verde


This profile is also available in French here.

To download a pdf version of a full 2018 Cabo verde country, click here.

Cabo Verde is an archipelago of 10 islands, only nine of which are inhabited. It is a relatively stable multiparty democracy with a recognised record for good governance and a highly sensitive economic outlook constrained by limited resources, making the country highly susceptible to external shocks and reliant on public spending, international aid, the diaspora, and tourism.

The financial sector is dominated by banks, which are liquid but risk averse. The banking sector is highly concentrated, with more than 85 percent of total financial sector assets with two of seven licensed banks. Within Cabo Verde access to finance is a significant constraint. Domestic credit to the private sector has dropped as banks increased the share of their assets deposited with the BCV and lent to the government and State-Owned Enterprises (SOEs).

There is a pressing need to address housing insecurity in relation to the degradation of housing, especially in rural areas. Nationally 49 out of every 100 households live in homes with roof problems and 52 out of every 100 have infiltration and moisture problems in their walls. The INE survey data shows that 78.6 percent of households live in free-standing houses, compared to 20 percent who live in apartments. In terms of building materials, 84.4 percent of residents live in units that are constructed out of reinforced concrete, while 50 percent of residents have cement floors and 48.8 percent have mosaic flooring. The majority of the houses have three rooms or divisions. A few have five or more.

There have been attempts to encourage social and sustainable development goals. For example, in 2009 the Sistema Nacional de Habitação de Interesse Social (SNHIS) (National System of Housing for Social Interests) was launched, informally known as Casa Para Todos (Houses for All). The program was intended to reduce the national housing deficit standing at 40 776 dwellings in terms of quantity and a further 66 013 dwellings in relation to the quality.

Find out more information on the housing finance sector of Cabo Verde, including key stakeholders, important policies and housing affordability:

Each year, CAHF publishes its Housing Finance in Africa Yearbook. The profile above is from the 2019 edition, which has up-to-date profiles for 55 African countries.

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