Housing Finance in Sierra Leone


Sierra Leone has a limited 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

The lowest recorded interest rate on a mortgage in Sierra Leone is six percent, as of September 2016, and requires at least a 20 percent down payment. The cheapest newly built house by a developer recorded by CAHF is US$ 50 000, which is for an 80 square metre unit. Cement prices are slightly higher than the continental average, at US$ 10 for a 50-kilogram bag.

With an urbanisation rate of 3.07 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. Among a range of housing initiatives, the Federation of Urban and Rural Poor in Sierra Leone (FEDURPSL) encourages group savings for housing, while the Centre Of Dialogue on Human Settlement and Poverty Alleviation (CODOSAPA) builds affordable housing. 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 Sierra Leone can afford.

Find out more information on the housing finance sector of Sierra Leone, 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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