Housing Finance in Southern African Development Community (SADC)


The prices of the cheapest newly built houses by a private developer in the SADC region range from about US$ 18 000 in Zimbabwe to US $40 788 in Namibia, US$ 63 000 in Mozambique, and US$ 200 000 in Angola. Angola, Seychelles and Madagascar were among the most expensive new, formal housing markets found this year. At current lending rates, only 1.3 percent of the Angolan urban population could afford to buy the US$ 200 000 house.

Generally, formal housing supply is targeted at the upper income and expat populations seeking housing, with very little being built for the working poor. On average, a 50 kg bag of cement costs US$ 6.82 for the SADC region, ranging from US$ 4.30 in Botswana to US$ 9.10 in Malawi and US$ 13 in Zimbabwe.

This has resulted in housing backlogs, from an estimated 2.1 million in South Africa; two million in Madagascar, Mozambique and Angola respectively; to 1.5 million in Zimbabwe and 100 000 units in Namibia. Zambia estimates that it will have a backlog of three million units by 2030, if no interventions are undertaken. While there are many government-led housing initiatives in the SADC region, housing supply is largely insufficient.

Each year, CAHF publishes its Housing Finance in Africa Yearbook. The profile above is from the 2016 edition, which has up-to-date profiles for 51 African countries.

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