Housing Finance in Sudan

Overview

This profile is also available in French here.

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

Mounting political turmoil in Sudan has resulted in negative economic growth and an increasing gap between the rich and the poor. Amongst others, the collapse of the Sudanese pound and the country’s debt burden have worsened economic conditions and significantly affected trade. These factors have also compromised the access of a majority of Sudan’s urban population to affordable formal housing. Moreover, the country’s underdeveloped housing microfinance sector has significantly affected lending activity.  Despite the harsh economic climate, the financial sector in Sudan is relatively stable with non-performing loans accounting for less than five percent of gross credit. Further, mortgages are considered as well-established financial instruments that are estimated to compose five to six percent of credit products issued nationwide.

Limited access to housing finance remains a key obstacle for Sudanese seeking housing. The lack of financial mechanisms has made households depend on alternatives outside banking and microfinance. Therefore, the country’s economic climate has pressured citizens to depend on remittances from family members working abroad, to afford formal housing. Coupled with this difficulty in accessing formal affordable housing microfinance instruments, the country has experienced a difficulty with meeting the rising housing deficit. The government of Sudan’s response to this was to establish a National Fund for Housing and Reconstruction (NFHR) in 2008 whose mandate was to build low-cost housing units. However, the Fund did not meet its targets due to a lack of funding. Interestingly, these economic challenges are perceived as beneficial to investors in the real estate market, thus only benefitting the upper income segment of the housing property market. The new political reality in Sudan presents an opportunity for the adoption of collaborative efforts between the government and the private sector to improve access to affordable housing (especially for low-income earners).

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