Housing Finance in Benin


This profile is also available in French here.

To download a pdf version of the full 2020  Benin country profile, click here.

Benin, with its increased population shows demographic projections that illustrate the rapid increase in urbanization. As much as Benin hopes to increase the housing supply by 2022 in large urban areas, the supply isn’t equivalent to the increased demand together with constraints in the housing supply available.

Forecasts indicate that there might be a slight decline in the economic growth because of the 2019 negative impact of the closure of the land borders by Nigeria as well as the negative impacts of the Covid-19 pandemic.

Benin has the second highest extended banking rate in West Africa. In this rate, the adult population is included and illustrates how they too have access to a wider range of banking services. This includes adding the development of digital banking, which makes accessing the products of the bank easier than the traditional way.

The Benin finance system is dominated by the formal banking sector, a sector which provides loans worth the duration of about 20-25 years.

To aid in the housing deficit, there are programs to build decent housing as there are still people living in urban areas that live in informal settlements. The government is also initiating a real estate development program to develop in that market as well.

Despite the persistent land insecurities, bare land sales constitute as a major part of transactions on the market. With improvements like digitalization. Which shows that overtime there might be significant positive changes.

One positive opportunity is the State launching a housing program that aims at building 20 000 low cost houses between 2016 and 2021 [1] which will be able to assist in accommodating the increasing population and provide housing security for most of the population.

[1] Real Estate and Urban Development Company (SIMAU), Project of 20,000 low-cost housing.  https://simau.com/projet-logement/ (Accessed 7 September 2020).

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

Each year, CAHF publishes its Housing Finance in Africa Yearbook. The profile above is from the 2020 edition, which has up-to-date profiles for 55 African countries.

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