Housing Finance in Liberia

Overview

This profile is also available in French here.

To download a pdf version of a full 2019 Liberia country profile, click here.

Liberia’s projected growth in the real gross domestic product (GDP) was mainly attributed to developments in the mining and panning industries. Affordability is a major challenge for Liberia’s housing sector. About 2.2 million Liberians or 50.9 percent of the population is classified as poor with poverty considered higher in rural areas (71.6 percent) than in urban areas (31.5 percent).

In 2018, the country’s financial sector was strong and resilient. This is because there was a growth in loans, total deposits, total capital, mobile money agents and a stable liquidity ratio. On the other hand, the Liberian insurance industry’s profitability was challenged due to increased operating expenses and a small insurable market. The Liberian Bank for Development and Investment (LBD) is the only bank that provides mortgages in Liberia and there are nine formal real estate agents. The National Housing Authority (NHA), established through an Act of parliament, is the government agency with the mandate to initiate, plan and execute housing programmes in the country. However, Liberia’s high rates of poverty and informally employed people suggest that the vast majority of the citizens cannot afford houses constructed by the NHA. Further, there are no housing microfinance institutions in Liberia. Options are also being explored for housing cooperatives.

Documenting housing-related data in Liberia is challenging because there is no housing ministry in the country. The absence of a ministry has not deterred the government from investing in housing delivery in the country. In 2018, the government adopted a pro-poor approach to housing by prioritizing the development of welfare housing. Moreover, Liberia’s housing sector presents huge opportunities for investment. In particular, the flexibility of the rental housing sector presents an opportunity for investment because the sector follows a simple system and requires fewer qualification requirements.

 

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