Housing Finance in Burkina Faso


This profile is also available in French here.

To download a pdf version of the full 2023 Burkina Faso country, click here.

Burkina Faso is a small, landlocked country (274 200 km2) with an estimated population of 21.51 million inhabitants and a population growth rate of 2.4% in 2020. The percentage of the population living in urban areas has increased from 12.7% in 1985 to 22.7% in 2006, and then to 26.1% in 2019. By 2026, only 35% of Burkina Faso’s population is expected to live in urban areas.

The World Bank’s latest assessment of the state of the global economy gives a positive outlook for Burkina Faso in 2021. Services in the country went up by 11.7%, and gold exports kept going up by 6.5%, but agricultural production stayed the same (-1.8%).Inflation rose to 14.7% in the first half of the year, and food prices rose by 13.7%, resulting in food insecurity for large parts of the population. Going forward, economic growth is expected to be driven by the agricultural sector, services, and gold exports.

The housing sector in Burkina Faso is characterised by high levels of informal production and land insecurity as a result of unplanned urbanization. Based on the number of families and the expected number of plots developed, the housing requirement in Burkina Faso is predicted to be about 400,000 units. Nationally, 83.3% of home occupants are owners, 10.2% are operational renters, and rental sales account for just 0.7%. More than 70% of urban workers work in the informal sector and do not have access to the formal housing financing system.

The cheapest house in Burkina Faso was 7,500,000 FCFA (US$11,903.7) with a constructed space of 56 m2 on a parcel of land with a minimum size of 204 m2. Given that the average wage in Burkina Faso is expected to be 95 000 FCFA (US$150.7) in 2021 and that the maximum monthly loan/income ratio for residential home loans is about one-third of family income, The great majority of the people with formal work would need more than 20 years to repay this sort of loan for the purchase of the cheapest property.

Burkina Faso has a dry tropical climate with a short wet season and a long dry season. The country’s climatic zones vary greatly, with some areas receiving much more rainfall than others. In recent years, the eastern and southern parts of the country have experienced rising temperatures and drought. The government is assisting the rural inhabitants in these areas by drilling wells and building small water reservoirs. As a result, among the climate change risks are severe droughts and water shortages connected to low agricultural harvests. To reduce housing vulnerability, an adaptation action plan for the infrastructure and housing sectors was designed. Two major activities were picked in the construction sector: supporting green initiatives and creating energy-efficient houses.

Even with all the help from institutions, financial institutions, real estate businesses, real estate agencies, brokers, building material suppliers, and other real estate intermediaries are still interested in the real estate sector.

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

Each year, CAHF publishes its Housing Finance in Africa Yearbook. The profile above is from the 2023 edition, which has up-to-date profiles for 55 African countries.

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