Housing Finance in Madagascar

Overview

This profile is also available in French here.

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

Madagascar is an island nation located off the coast of southern Africa, and east of Mozambique.  It is home to 26 262 368 people. Despite an abundance of natural resources, its poverty levels are amongst the highest in the world. Its export economy is driven largely by the agricultural sector, which is a significant employer. Madagascar is one of the countries most vulnerable to the impacts of climate change on the African continent.

Madagascar’s financial system of made up of 54 institutions. The banking sector is concentrated with four main banks. Microfinance institutions have been instrumental in providing financial services to poorer households. Banking penetration is low with less than 10 percent of households with a formal bank account. In addition, a large number of households are excluded from the financial sector altogether. However mobile money and microcredit are rapidly increasing levels of financial inclusion.

The urban population makes up about 20 percent of the population. Formal housing is largely unaffordable. In the major urban centre of Antananarivo, informal settlements make up between 60 to 70 percent of dwellings. There is a commitment by the state to construct social housing in Madagascar’s major regions. This is to be implemented through a public-private partnership model.

Residential housing development is focussed on the high income households. The time and costs associated with accessing construction permits, registering a property and inefficient land administration systems hinder new property developments.

The country’s policy agenda is focussed on promoting inclusive growth, addressing land tenure problems and the inefficient financial system, improving sanitation infrastructure, inflation stabilisation and responding to the impacts of adverse weather conditions. Although housing is not an explicit priority, addressing the aforementioned factors may potentially and positively drive housing delivery and affordability.

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


Each year, CAHF publishes its Housing Finance in Africa Yearbook. The profile above is from the 2019 edition, which has up-to-date profiles for 55 African countries.

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