Housing Finance in Comoros


For the French version of this country profile, click here.

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

The Union of Comoros (Comoros) is an archipelago of four islands and several islets located in the Western Indian Ocean, just south of the Equator and less than 200 miles off the East African coast. Comoros covers a total area of 2 235km2, and has an estimated population of 832 347 in 2018. It is estimate that a third of the population lives in urban areas, including Moroni, Mutsamudu and Domoni. With almost 400 inhabitants per square kilometre, the Comoros is densely populated, and over half of its population (53 percent) is under the age of 20. The country experienced marginal economic growth, from 2.2 percent in 2016 to 2.5 percent in 2017. This was largely driven by improved electricity supply, an increase in emigrant remittances, and developments in infrastructure. Structural reforms and policies to diversify the country’s economic base have not yielded notable results, and as a result, the country remains heavily dependent on foreign aid.

Comoros has a relatively small and underdeveloped financial sector. The Comorian banking and financial system comprises 10 institutions approved by the Central Bank of Comoros including: four banks, three decentralised financial institutions or microfinance institutions and three financial intermediaries. The Government of Comoros noted the increasing inaccessibility of adequate housing for the urban population. Over the years since independence, population growth, recurrent socio-politico-economic crises, aggravated by the global financial crises have led to housing finance being mostly dependent on the private sector. To this effect, it was recommended that mechanisms of financing be put in place to partly make up for the insufficiency of public resources, and also to mobilise all the partnerships likely to facilitate access to housing for more people.

After some improvement since 2011, the IMF points that Comoros’s near-term outlook remains challenging. Critical recommendations for the country’s development include the implementation of a comprehensive set of transformative policy measures; Initiatives to overcome persistent and severe physical and human capital constraints; and unlocking bottlenecks in basic infrastructure such as roads and electricity. These would create an improved business climate which is expected to strengthen governance and judicial effectiveness, and to address financial sector fragilities and unlock long-term growth prospects. The IMF further highlights that a strong reform commitment and deeper engagement with the donor community is required for Comoros to ensure that the authorities’ detailed strategic development plan is underpinned by sustainable financing sources in order to meet inclusive growth objectives. The ambitions of the Comorian Government are to increase the competitiveness of manufacturing, agri-processing and construction, and environmental sustainability. Implementation of this plan will create further opportunities with respect to housing construction and social housing. As the economy progresses, there might be enormous scope for housing and housing financing with a particular emphasis on social housing.

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 2018 edition, which has up-to-date profiles for 54 African countries.

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