Housing Finance in Comoros

Overview

This profile is also available in French here.

To download a pdf version of the full 2020 Comoros country profile, click here.

The Union of Comoros comprises of three islands and several islets, and is located off the East African coast. The country’s population in 2019 was estimated at 850 886, with approximately 29 percent of this population living in urban areas. Comoros is ranked among the world’s poorest countries, and most of its economy relies on  foreign aid, remittances and tourism, with majority of the population relying mainly on subsistence agriculture and fishing which were greatly affected by the COVID-19 pandemic.

Comoros’s banking and finance sector comprises of 10 institutions which are approved and supervised by the Central Bank of Comoros. These include four banks, three decentralizes financial institutions (microfinance institutions) and three financial intermediaries.

The country’s financial sector is however relatively small and underdeveloped. Some of the obstacles facing the sector include poor financial infrastructure and distribution channels, high fees applied by financial institutions, and limited financial education. Credit growth is relatively low as the banking sector struggles to operate  due to an unfavourable operating environment, including weakness in the judicial system that inhibit enforcing  claims against  delinquent debtors. The Central Bank of Comoros is however implementing reforms aimed at consolidating the banking system, reducing risk through guarantee systems, and mobilising medium and long term resources to support the sector.

Approximately 65 percent of all housing units in Comoros are self-built, constructed using local materials. Nearly 90 percent of housing units are owner-occupied, 3 percent are rented and 3 percent occupied rent free. Due to high levels of poverty, the development of the housing sector in Comoros has been hampered. Housing finance is mainly dependent on the private sector, and through this, some housing loans have been developed. These are however only affordable to residents of major cities, private sector employees, and senior civil servants. The administration of the housing sector is managed by the Ministry of Energy, Agriculture, Fisheries, Environment, Regional Planning and Urban Planning.

Since 2015, more than 70 percent of the urban population in Comoros have lived  in densely populated houses with extremely difficult sanitary conditions, and limited access to electricity. In 2020, the Comoros government has made progress with several policy reforms including strengthened electricity provision and it is reported that around 98 percent of the population now have access to improved sanitation systems and safe water.  The government is also working to transform Comoros into a dynamic emerging market over the next decade by strengthening human capital infrastructure and governance.

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


Each year, CAHF publishes its Housing Finance in Africa Yearbook. The profile above is from the 2020 edition, which has up-to-date profiles for 55 African countries.

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