Housing Finance in Guinea

Overview

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

The Republic of Guinea is located in West Africa and shares a border to the north with Senegal, to the northwest with Guinea-Bissau, to the west with the Atlantic Ocean, to the south with Sierra Leone and Liberia, to the east with Ivory Coast, and to the northeast with Mali.  According to the National Institute of Statistics, the population is estimated in 2020 at 12 559 623 inhabitants, more than half of whom live below the poverty line.

Guinea’s gross domestic product (GDP) grew by six percent in 2018 and 6.2 percent in 2019 and -1.8 percent in 2020 and 3.8 percent in 2021 in the pessimistic scenario. The annual inflation rate was 9.7 percent in 2019, the new projections, taking COVID-19 into account, predict inflation in the range of 8.6 percent.

There are 16 commercial banks, five of which offer mortgages or home loans. Home loans are available for the purchase of land, the purchase or construction of a house, and the renovation of real estate properties. Housing finance is generally granted to bank staff, and employees with a guaranteed contract and a salary level well above the norm. The available accommodation is not affordable, to increase affordability, the state grants incentives to developers, such as the provision of land. The land is serviced and developers are provided with tax benefits throughout the construction and marketing period.

Guinea has an active microfinance sector that plays an important role in providing access to financial services, especially for the low income population. COVID-19 has caused inflation and the depreciation of the Guinean franc against the US dollar. This has resulted in the selling price of houses increasing in the local currency, which will further reduce the chance of potential buyers being able to afford homes.

In response to the pandemic, the government has set up an Interministerial Committee chaired by the Prime Minister and apart from the payment of rents for public and private buildings, which have been blocked from April to December 2020, no other official measures are being taken by the housing finance sector to counter the impact of COVID-19.

Housing supply is well below demand, only 500 housing units are built in a year, yet the current housing needs are estimated at 47 200 dwellings a year. However on 13 July 2020, the United Nations Office for Project Services (UNOPS), the Government of Guinea and SHS Holdings Ltd signed an agreement for the construction of 200 000 affordable houses over the next 10 years. This agreement will help bridge the housing gap through innovative, sustainable and affordable solutions.

Find out more information on the housing finance sector of Guinea, 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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