Housing Finance in Chad


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To download a pdf version of the full 2018 Chad country profile, click here.

The housing finance sector in Chad struggles to develop, given that Chad ranks as one of the three poorest countries in the world and is characterised by political and economic instability.  Due to falling oil prices, Chad’s undiversified economy has deteriorated, leaving Chad’s financial system among the least developed in the Central Economic and Monetary Community (CEMAC) region and  characterised by limited debt and low monetisation.

Access to financial services remains a major issue for the vast majority of Chadians, with banking services almost non-existent outside of urban areas. Chad has nine commercial banks, two insurance companies, and two pension funds.  It nevertheless has a very dynamic informal microfinance sector which has over 200 microfinance institutions which make finance accessible to over 10 million people.

The rental cost of a formal apartment in the city centre ranges between CFA 675,365.67 (US$1 202.97) and CFA 1.35 million (US$2 404.65) a month while the cost of an apartment is approximately CFA 4.5 million (US$8 015.49) per square meter in the city centre and CFA 2.6 million (US$4 631.17) outside the city centre. This is not affordable for the majority and is reflected by living patterns in and outside the city.

An estimated 76.9 percent of the population live in rural areas while 90 percent of Chad’s urban inhabitants live in informal settlements. This is indicative of a shortage of affordable housing. Supply of housing in Chad is predominantly provided informally through self-construction or incremental housing projects. However, the country’s remote land-locked location drastically increases the price of imported building materials and local manufacturing remains limited.

Any development in the built environment will face not only the challenges of the economic and political environment but also the physical difficulties encompassed in the context of a geographically remote, drought-ridden country with limited infrastructure. Nevertheless, these challenges present an opportunity for the provision of affordable housing and affordable housing finance, given the desperate needs of the country. In an improved economic and political climate, a housing sector could thrive in Chad.

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

Each year, CAHF publishes its Housing Finance in Africa Yearbook. The profile above is from the 2018 edition, which has up-to-date profiles for 54 African countries.

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