Housing Finance in Southern African Development Community (SADC)


To download the full SADC regional profile as it appears in the 2018 Housing Finance Yearbook, click here.

Members states are reported to have signed the agreement in 2016, although as at June 2018 there were still calls for some countries to sign and complete the agreement by depositing the necessary funds in the RDF. Operationalising the SADC-RDF will be a major step forward towards decreasing the infrastructure financing gap on the continent. There are concerns about member states ability to contribute to funds.

Despite the region’s relatively strong GDP, access to finance. Access to finance is the single biggest problem for doing business in seven of the 16 SADC member countries including, the Democratic Republic of Congo (DRC), Lesotho, Malawi, Namibia, Seychelles, Zambia and Zimbabwe. The banking sector is highly concentrated across the region. South African banks tend to dominate with most of the major South African based banks operating subsidiaries across SADC. A significant risk to the regional banking sector is the rise in non-performing loans in many member states. A significant risk to the regional banking sector is the rise in non-performing loans in many member states. According to the latest available data 66 percent of adults in the region are financially included. Nevertheless, the exclusion rates of above 34 percent hamper access to credit from formal institutions.

Mortgage markets across the region are in part constrained due to high interest rates. In at least five member states, interest rates on mortgage loans exceed 20 percent per annum. Providing access to affordable, well-located housing remains a major challenge across the SADC region.  Large housing deficits exist across the SADC region with demand far outweighing housing supply and delivery. The renewed focused on growing private sector investment by creating conducive environments for businesses to flourish, increasing inter-regional trade, routing out corruption and strengthening judicial and oversight systems, SADC member states maintain committed to driving economic development across the region. These commitments could result in the alleviation of housing backlogs and the improvement of living conditions across SADC’s urban centres.