Housing Finance in Mozambique

Overview

Mozambique has a growing housing finance sector. As the mortgage market does not yet meet the breadth of the population who might afford a mortgage, most households still finance their housing independently, with savings or non-mortgage credit.

Due to Mozambique’s major liquidity risks and its unresolved efforts to restructure its debt, the sovereign fell into default in early 2017. Macroeconomic instability will persist in the near-term and, owing to low foreign investment and fiscal constraints, economic growth is expected to perform poorly.

The mortgage interest rates are around 28 percent with a repayment term of 15, 20 or 25 years and a minimum down payment of 20 percent. The cheapest newly built house by a developer recorded by CAHF is US$ 63 000, which is for an 81 square metre unit. Cement prices are lower than the continental average, at US$ 4.93 for a 50-kilogram bag.

With an urbanisation rate of 32.2 percent, demand for affordable housing will remain strong, both for rental and purchase. Housing microfinance will play an important role in increasing the supply of housing, and efforts to increase access should be undertaken. Mozambique is currently going through an economic slowdown but several firms, such as Reall and Socremo, have undertaken innovative projects that increase access to housing, while Financial Sector Deepening Moçambique does important work to increase financial inclusion. With a good macroeconomic environment, sound policy, better data and increased access to affordable credit, an enabled housing market can increasingly provide housing that the average household in Mozambique can afford.

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


Each year, CAHF publishes its Housing Finance in Africa Yearbook. The profile above is from the 2017 edition, which has up-to-date profiles for 54 African countries.

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