Housing Finance in Burkina Faso
Overview
This profile is also available in French here.
To download a pdf version of the full 2020 Burkina Faso country, click here.
Burkina Faso is a country with a population of 20.9 million with a high poverty line. The country has a 40% poverty line [1] and part of the reason is the ongoing conflicts since 2016. These ongoing conflicts have increased the amount of food insecurity and malnutrition in the country. All of this further decreasing the amount of disposable income that people have.
Despite the security issue, authorities have improved agricultural yields and have made strategic investments in the energy and infrastructure sectors. To facilitate accessibility of services, the number of rural roads are set to increase in 2020.
With poverty at its peak, the high level of urbanisation affects the housing shortage issues. Due to having these issues, the government is aiming at improving the quality of life for the people living in the country by implementing programmes.
There is relative accessibility to finance in Burkina Faso, also inclusive of informal financial institutions. There are also financing funds that are aimed at eradicating poverty. The country provides housing loans with the terms from 5 to 20 years, all of which depend on the type of loan that has been taken and the amount that was borrowed.
With the 40% poverty line and the fact that certain people earn a minimum wage (which doesn’t always constitute as a living wage), not everyone can afford to buy a house making them live in informal settlements. In response to this, the government has responded by implementing emergence programme to aid the residents needs. The aim of the programme is to improve security and reduce the vulnerability of the population. Even so, there are still housing and infrastructure problems because the houses are offered to residents that meet a certain criterion. So, the housing supply remains as a problem for other residents.
There seems to be more opportunities in the rental market as more and more people need a place to stay because some don’t qualify for mortgage loans to buy their own houses. So, investment in this could help improve the lives of the population but mainly if it’s affordable housing.
[1] Worldometers. (2020). Burkina Faso population live.
https://www.worldometers.info/world-population/burkina-faso-population (Accessed on 28 September 2020). Pg. 1.
Find out more information on the housing finance sector of Burkina Faso, including key stakeholders, important policies and housing affordability:
- Macroeconomic Overview
- Access to Finance
- Affordability
- Housing Supply
- Property Markets
- Policy and Regulation
- Opportunities
- Availability of data on housing finance
- COVID-19 response
- Websites
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.
Download yearbookBurkina Faso
Macroeconomic Overview
Burkina Faso, commonly known as the “Land of Men of Integrity”, is a country in the Sahel region with relatively limited resources and a low-income population of approximately 20.9 million.[1] It is a member of both the West African Economic and Monetary Union (WAEMU) and the Economic Community of the States of West Africa (CEDEAO). Formerly known as the Republic of Upper Volta, Burkina Faso has experienced little peace since its independence and especially during the reign of President Blaise Compaoré, who ruled the country with an iron fist for 27 years. His fall in October 2014, by popular resistance,[2] saw the newly elected President of Roch Marc Christian Kaboré being put in place in 2015.
Burkina Faso has been highly exposed to the effects of the regional Sahel instability since 2016. Repeated terrorist attacks have led Burkina Faso to be one of the driving countries of the joint force launched in 2017 by the G5 Sahel States (Burkina Faso, Mali, Mauritania, Niger and Chad). Burkina Faso had been president of the G5 Sahel since February 2019 but passed the torch to the Islamic Republic of Mauritania in February 2020.[3] The ongoing conflicts have killed more than 500 people,[4] forced schools to close[5] and have displaced many people. This has resulted in an unprecedented humanitarian disaster as well as high levels of food insecurity and malnutrition.[6]
The African Development Bank (ADB) projected a GDP growth rate of about six percent in 2020 and 6.1 percent in 2021. Despite the challenging security situation, the authorities have improved agricultural yields and strategic investments in the energy and infrastructure sectors. They have done this through the development of 25 000 hectares of irrigation in 2019 and 2020, by supplying agricultural producers with 150 000 animal-drawn equipment and through the construction of a tractor and motor cultivator assembly unit. To facilitate access to agricultural production areas, the proportion of developed rural roads is expected to increase to 43 percent in 2020, compared to 32.60 percent in 2018. In terms of energy, the construction of new photovoltaic solar power plants is expected to provide 155 megawatts of electricity. Gold production is expected to reach 55.3 tons in 2020 (52.9 tons in 2019).[7]
Inflation reached 1.4 percent in 2018 due to rising food prices. It was expected to remain below two percent and thus remains below the three percent mark set by WAEMU. With the rural exodus, caused by armed conflict and persistent poverty, the rate of urbanisation has reached one of the highest rates on the continent (the urban population has increased by 4.99 percent between 2015 and 2020),[8] exacerbating an already severe housing shortage in the capital Ouagadougou and in the country’s second largest city, Bobo-Dioulasso.
Despite unstable security and the serious humanitarian situation, the government continues to implement its reconstruction program flagship post-Compaoré, the National Plan for Social Economic and Social Development (PNDES) 2016-2020. PNDES aims to improve the quality of life of people living in Burkina Faso by providing access to water and sanitation as well as quality energy supplies. Through the PNDES, 5 167 social and economic housing units were built between 2017 and 2020, out of a total of 40 000 housing units that were planned.[9]
[1] Worldometers. (2020). Burkina Faso population live.
https://www.worldometers.info/world-population/burkina-faso-population (Accessed on 28 September 2020). Pg. 1.
[2] France 24. (2014). Fall of Blaise Compaoré: the hasty end of “Monsieur bons offices”. October 31, 2014.https://www.france24.com/fr/20141031-burkina-faso-blaise-compaore-demission-quitte-pouvoir-ouagadougou-constitution-portrait (Accessed on 27 September 2020).
[3] Ministry of Europe and foreign affairs. (2020). France Diplomatie: presentation of Burkina Faso. 19 February 2020. https://www.diplomatie.gouv.fr/fr/dossiers-pays/burkina-faso/presentation-du-burkina-faso/ (Accessed on 28 September 2020).
[4] Xinhua. (2019). Burkina Faso: extension of the Emergency Programme for the Sahel to other regions affected by terrorism. 20 June 2019. http://french.xinhuanet.com/2019-06/20/c_138156843.htm (Accessed on 27 September 2020).
[5] Unicef. (2019). School closures in Sahel double in the last two years due to growing insecurity- UNICEF . 28 February 2019. https://www.unicef.org/press-releases/school-closures-sahel-double-last-two-years-due-growing-insecurity-unicef (Accessed on 28 September 2020).
[6] Nations Unies OCHA. (2019). Burkina Faso : US$ 100M urgently needed as humanitarian landscape drastically deteriorates. 5 March 2019. https://www.unocha.org/story/burkina-faso-us100m-urgently-needed-humanitarian-landscape-drastically-deteriorates (Accessed on 28 September 2020).
[7] African Development Bank. (2020). Economic outlook in Africa 2020-Burkina Faso.https://www.afdb.org/sites/default/files/documents/publications/aeo_2020_fr-_perspectives_economiques_en_afrique.pdf (Accessed on 28 September 2020). Pg. 157.
[8] Index Mundi. (2020). Burkina Faso urbanisation.
https://www.indexmundi.com/burkina_faso/urbanization.html (Accessed on 28 September 2020). Pg. 1.
[9] StarActu. (2020). 40 000 housing project: the SP-NLP reports on achievements. June 17, 2020. http://www.staractu-bf.net/index.php/actualite/nationale/271-projet-40-000-logements-5-164-locaux-sociaux-et-economiques-le-secretariat-permanent-de-la-politique-nationale-du-logement-sp-pnl-a-dresse-le-bilan-de-ses-activites-le-mardi-16-juin-2020-a-ouagadougou-il-s-est-agi-de-passer-en-revue-les-activites-qui-ont-ete-mene-courant-l-annee-2017-2020-plus-de-5-167-logements-sociaux-et-economiques-ont-ete-realise-au-burkina-de-2017-a-2020-grace-au-programme-na (Accessed on 28 September 2020).
Access to Finance
In terms of financial inclusion, Burkina Faso takes the 4th place in the WAEMU zone, behind Benin, Senegal and Côte d’Ivoire with an indicator of 0.594.[1] Informal financial channels, including decentralised financial systems (DFSs), provide the greatest facilities for saving or borrowing in the country. Nearly two million customers were affiliated to 76 DFSs as of December 31, 2019, with total savings amounting to FCFA 231 185 million (nearly US$ 412 million) and total credit of FCFA 178 445 million (nearly US$ 219 million).[2]
In addition, there are national funds, known as the National Financing Funds, aimed at eradicating poverty and the lack of development through direct or indirect financing in the form of loans, guarantees, training, grants, bonuses and equity investments (acquisition of shares, bonds and shares). “The 19 National Funds provided loans of FCFA 86.7 billion (nearly US$ 150 000 million) between 2012 and 2016,” according to a recent report.[3]
The Central Bank of West African States (BCEAO) estimates that 15 commercial banks and four financial institutions are operating in Burkina Faso as of 30 May 2020.[4]
Housing loans are available in the country. The Société Générale Burkina Faso, a subsidiary of Société Générale based in France, provides loans ranging from FCFA 5 million (US$ 8 528) to FCFA 500 million (US$ 852 000). Payment terms depends on the amount borrowed and repayments can be spread over a period of five to 25 years, with an interest rate of 10 percent and an administrative cost of FCFA 30 000 (US$ 50). Coris Bank International offers a product called “Coris Bayiri”, specially designed for Burkinabe living abroad. Its main feature includes interest of four percent per annum on all savings, regular contributions over a four-year period and a credit rate of seven percent, excluding annual taxes over a period of five to 10 years. The loans granted amount to 2.5 times the sum of savings collected over four years and could be used as collateral for the bank loan agreement.[5]
The Housing Bank of Burkina Faso (BHBF) was founded by the State in July 2005 to address the problem of housing finance. BHBF was privatised in October 2018 and renamed International Business Bank (IB Bank).
[1] BCEAO. (2020) Evolution indicators of financial inclusion in the WAEMU for the year 2019. https://www.bceao.int/sites/default/files/2020-09/Evolution%20des%20indicateurs%20d%27inclusion%20financière%20dans%20l%27UEMOA%20au%20titre%20de%20l%27année%202019.pdf (Accessed on 29 September 2020). Pg. 5.
[2] BCEAO. (2020). Main indicators of WAEMU for SFD as of 31/12/2019. https://www.bceao.int/sites/default/files/2020-05/BCEAO%20-%20Indicateurs%20SFD%20UMOA%20au%2031%20décembre%202019.pdf (Accessed on 29 septembre 2020). Pg. 1.
[3] Kabore, E. (2019). National funds: FCFA 86.745 billion of credits between 2012 and 2016. The Economist of Faso. https://www.leconomistedufaso.bf/2019/02/11/fonds-nationaux-86745-milliards-f-cfa-de-credits-entre-2012-et-2016/ (Accessed on 29 September 2020).
[4] BCEAO. (2020). WAEMU banking landscape as of May 31, 2020.
https://www.bceao.int/fr/content/paysage-bancaire (Accessed on 28 September 2020). Pg. 1.
[5] Coris Bank International. (2020). Diaspora Coris Bayiri. https://www.corisbanque.com/diaspora_bayiri.php (Accessed on 28 September 2020).
Affordability
Agriculture and livestock breeding account for nearly 80 percent of the country’s employment.[1] However, with an unemployment rate of 6.1 percent,[2] and a minimum monthly wage of FCFA 34 664 (US$ 58),[3] poverty persists and it is estimated that 40 percent of the population suffers from it. This has a negative impact on the housing market, because buying a piece of land in a formal and decent neighbourhood is a privilege that only a few fortunate people can access. The alternative is therefore to live in informal areas or poorly settled neighbourhoods, where access to water and electricity is scarce and sanitation is often inadequate. In these neighbourhoods, prices are affordable because of the small sizes of land for sale. However, the price per square meter is still high, as demand is strong.[4]
In recent years in Burkina Faso, land prices have continued to rise due to land speculation, with land costing FCFA four million (nearly US$ 7 143) being resold at about FCFA 10 million (US$ 17 857).[5]
The armed conflict has worsened the situation of many nationals in rural areas, as their livelihoods have been destroyed, and they have been forced to flee their land and rural homes and settle in precarious living conditions in urban areas. As a response, the government extended its Emergency Programme for the Sahel (PUS-BF) 2019/21 to 77 municipalities that are threatened by terrorist attacks, bringing the total number of municipalities affected by violent extremists and protected by the programme to 106 municipalities. The programme, in which the government invested nearly FCFA 81.5 billion (US$ 145.5 million) in 2017 and FCFA 98. 5 billion (US$ 175.8 million) in 2018 aims to improve security and reduce the vulnerability of the population. It is being implemented in four phases: “first, addressing priority emergencies, then strengthening the state’s presence, followed by a response to security challenges and finally, lay the foundations for resilience”.[6]
This programme has enabled the construction of maternity services, clinics, health and social promotion centres, essential generic drug depots, incinerators and toilets. Schools (kindergartens, primary schools, CES and high schools) have been built, as well as offices and housing for teachers, shops, water stations and food was acquired for school canteens.
However, many people have expressed their dissatisfaction with the process of allocating the 40 000 homes currently being built by the government, as they are unable to meet the criteria. The marketing of the houses is carried out by registering with the Centre de gestion des cités (CEGECI), a real estate company controlled by the State. A committee at the CEGECI analyses housing applications. If the application is accepted, the beneficiary will have to make a contribution of 10 percent of the total price for social housing and 30 percent for economic housing. The rest can be financed by a loan and thus reach FCFA 6 500 000 for the acquisition of a villa type F2 type 1 social.[7] A number of challenges remain, including the lack of water and electricity and lack of funds.[8]
[1] La Tribune Afrique. (2018). Burkina Faso: agriculture and livestock generate 80 percent of employment and barely 30 percent of GDP. 8 July 2019. https://afrique.latribune.fr/economie/strategies/2018-07-08/burkina-faso-l-agriculture-et-l-elevage-generent-80-de-l-emploi-et-a-peine-30-du-pib-784441.html (Accessed on 29 September 2020).
[2] Banque mondiale. (2020) unemployment, total (percentage of population). (Modeled ILO estimate).
https://donnees.banquemondiale.org/indicateur/SL.UEM.TOTL.ZS?locations=BF (Accessed on 28 September 2020)
[3] Votresalaire.org. (2020). Minimum wages-Burkina Faso. October 29, 2018. https://votresalaire.org/burkinafaso/salaire/salaire-minimum (Accessed on 29 September 2020)
[4] OpenEdition Journals. (2014). Les quartiers non-lotis : espaces de l’entre-deux dans la ville burkinabé. July 2014. https://journals.openedition.org/cdg/478 (Accessed on 28 September 2020).
[5] Le Fou. (2018). Housing crisis in Burkina: watch out for the pressure cooker. April 12, 2018. The country. http://lepays.bf/crise-logement-burkina-attention-a-cocotte-minute/ (Accessed on 28 September 2020).
[6] Reliefweb. (2018) Emergency Program for the Sahel (PUS-BF): significant progress despite a difficult context. January 2, 2019. https://reliefweb.int/report/burkina-faso/programme-d-urgence-pour-le-sahel-pus-bf-des-progr-s-importants-malgr-un (Accessed on 28 September 2020).
[7] LeFaso.net. (2020) Social housing: end of ordeal for Issiah Tabsoba. August 11, 2020. https://lefaso.net/spip.php?article98650 (Accessed on 28 September 2020).
[8] Birba, F (2019). Cities Management Centre: Minister Maurice Bonanet takes the pulse of the society. February 25, 2019. Sidwaya. https://www.sidwaya.info/blog/2019/02/25/centre-de-gestion-des-cites-le-ministre-maurice-bonanet-prend-le-pouls-de-la-societe/ (Accessed on 28 September 2020).
Housing Supply
Rural residents flee war and continue to arrive in Ouagadougou, where they take shelter in schools due to lack of alternative accommodation.[1] It was planned to build 20 670 to 40 000 housing units in the following cities: Gaoua (567 dwellings), Manga (503), Tenkodogo (700), Banfora (100), Ziniaré (118), Kombissiri (50) Koudougou (100), Bobo Dioulasso (58) and finally Ouagadougou (3 118 dwellings). Bobo-Dioulasso in particular struggles to manage the influx of newcomers. Newcomers, anxious to find refuge, have built informal houses wherever they can. Illegal land occupation is therefore widespread, prompting the government to evict squatters using force and destroying temporary homes. In April 2019, informal residents, exasperated by the housing crisis in Ouagadougou, protested against the lack of housing and asked the government to give each household a parcel of land.[2]
Sixty beneficiaries received the keys of their new houses in Bassinko (Bassinko is an extension of Ouagadougou) as part of the 1 240 dwellings planned under the PNCL in March 2019. Through this programme houses have been built on a plot of 204 m2 and include a living room, two bedrooms, a kitchen and an indoor shower. The beneficiaries paid FCFA 7.5 million (US$ 13 392. 85) each for their house.[3]
The construction of 300 houses is planned in Banfora (a town located 85 km southwest of Bobo-Dioulasso) under the supervision of real estate developer Barro Boubacar (EBB Immo) in collaboration with the Banque de l’Union-Burkina Faso. Using a sales/rental framework, the monthly rent will be FCFA 40 000 (US$ 67) over a period of 20 years.[4]
Housing construction has also been planned in the city of Tenkodogo (in the centre-east of the country) and was due to start in December 2019. The construction of 1 000 housing units for Burkinabé living abroad has been planned in the Cité de La Diaspora. The accommodation will be F3, F4 and F5. The plots of land will be 330 m2 for F3 and F5 and 450 m2 for F5. The government is aware that it will not be able to give a parcel of land to each Burkinabé,[5] and has indicated that it plans to build a complex of buildings to house the poor, through low-rent housing. The project has encountered land mobilisation issues, but had delivered 4 000 houses units by May 2019.
Finally, the programme also encourages owners to build housing for themselves, since almost 30 percent of the 400 000 plots in Ouagadougou are not yet developed.
[1] Radio France Internationale. (2019). Burkina: massive arrival in the capital of refugees fleeing the Soum. 13 June 2019. https://www.rfi.fr/fr/afrique/20190613-burkina-arrivee-massive-capitale-refugies-fuyant-le-soum (Accessed on 28 septembre 2020).
[2] Zouré, H. (2019). housing crisis in Burkina Faso: demonstration in Ouagadougou for the “right to housing”. April 5, 2019. Droits libres TV. https://projets-e24.com/droitlibretv/www.droitlibre.tv/spip743f.html?page=article&id_article=1830 (Accessed on 28 September 2020).
[3] Samboé, E-K. (2019). Social housing: assignees’ of Bassinko receive the keys to their houses. 23 March 2019. Sidwaya. https://lefaso.net/spip.php?article88705 (Accessed on 29 september 2020).
[4] Sanou, A. (2019). Ministry of Housing: shortly social housing in Banfora. 9 February 2019. Burkina24. https://www.burkina24.com/2019/02/09/ministere-de-lhabitat-bientot-des-logements-sociaux-a-banfora/ (Accessed on 29 September 2020).
[5] Some, R. (2019). Maurice Bonanet: we can never give a parcel to every Burkinabe. May 8, 2019. Burkina 24. https://www.burkina24.com/2019/05/08/maurice-bonanet-on-ne-pourra-jamais-donner-une-parcelle-a-chaque-burkinabe/ (Access on 29 September 2020).
Property Markets
There is still no reliable data to be able to undertake a detailed analysis of the state of the residential real estate market in Burkina Faso. However, it appears that real estate companies and developers continue to dominate Burkina Faso’s real estate markets. They provide plots of land, houses and apartments for sale and for rent to the highest bidder. This has attracted media attention[1] with citizens protesting about land speculation for housing [2] and accuse developers of exacerbating the housing crisis.
Those who buy a property in Burkina Faso face a long and complicated registration process. Registering a property consists of four procedures and takes 67 days (the average is 51.6 days in sub-Saharan Africa and 23.6 days in high-income countries of the Organisation for Economic Co-operation and Development – OECD). Registration costs 11.9 per cent of the value of the property (an average of 7.3 per cent in sub-Saharan Africa and 4.2 per cent in high-income OECD countries). The quality of land administration indicator is 12.5 (9.0 in sub-Saharan Africa and 23.2 in high-income OECD countries). The World Bank ranked Burkina Faso 151 for its ease of doing business in 2020.[3]
The ratio between the price of a property and the income is 11.05 in Burkina Faso, with the loan as a percentage of income being 102.83 percent and the property accessibility index 0.97. In the city centre, the price/rent ratio is 5.69 and the price/rent ratio outside of the city centre is 15.08. The gross rental yield in the city centre is 17.58 percent while it is 6.63 percent outside the city centre. These figures were calculated by Numbeo.[4]
Land prices vary considerably. In the rural areas it is possible to pay only FCFA 24 646 (US $ 44) per hectare to the farmer who owns the land. Ultimately, the land belongs to the government. Fees associated with taxes due to the government, taxes and fees due to municipal experts (environmental, architectural) and other “unofficial” municipal fees can lead the buyer to pay between FCFA 2 800 696 (US $ 5 000) and FCFA 3 360 928 (US$ 6 000) for a hectare purchased at FCFA 24 646 (US$44). On the other side of the market spectrum, there are three expensive areas in the capital of Ouagadougou: zone Du bois, Zaca and Ouaga 2000. In these areas, the average price of undeveloped land is FCFA 100 000 (US$ 178.5) per square metre, and if built, the price per square metre can reach up to FCFA 500 000 (US$ 892.85). These are average prices, stemming from a global land price study conducted in November 2017, based on thousands of prices given by real estate agencies.[5]
In this context, the prices are volatile and change from one real estate agency or from one owner to another. The dissemination and lack of information in the real estate sector is also a major problem in Burkina Faso.
[1] Le Fou. (2018). Housing crisis in Burkina: watch out for the pressure cooker. April 12, 2018. The country. http://lepays.bf/crise-logement-burkina-attention-a-cocotte-minute/ (Accessed on 29 September 2020).
[2] Zouré, H. (2019). housing crisis in Burkina Faso: demonstration in Ouagadougou for the “right to housing”. April 5, 2019. Droits Libre TV. https://projets-e24.com/droitlibretv/www.droitlibre.tv/spip743f.html?page=article&id_article=1830 ( Accessed 29 September 2020).
[3] World Bank Group. (2020). Burkina Faso – Doing Business 2020. https://www.doingbusiness.org/content/dam/doingBusiness/country/b/burkina-faso/BFA.pdf (Accessed on 30 September 2020).
[4] Numbeo. (2020). Property prices in Burkina Faso. Last update : August 2020. https://www.numbeo.com/property-investment/country_result.jsp?country=Burkina+Faso (Accessed on 30 September 2020).
[5] Carbonell, N. (2018). What is the average cost of land per acre in Burkina Faso ? 28 February 2018. Quora.com. https://www.quora.com/What-is-the-average-cost-of-land-per-acre-in-Burkina-Faso (Accessed on 30 September 2020).
Policy and Regulation
In Burkina Faso, the Constitution registered the right to housing in Article 18. Act No. 034-2012 / AN of 2 July 2012 which repeals all previous provisions to the contrary, in particular Act No. 014/96 / ADP of 23 May 1996 on agrarian and land restructuring in Burkina Faso.[1] The Act determines national territorial planning, general principles governing the planning and sustainable development of the territory, the management of land and other natural resources and the regulation of land assets and provides the framework of agrarian policy. It comprises 348 articles divided into nine titles, including general provisions (Title I); national territory (Title II); spatial planning and sustainable development (Title III) ; national territory management (Title IV) ; regulation of real estate (Title V) national territories abroad and territories of diplomatic and consular missions, governmental and international non-governmental institutions in Burkina Faso (Title VI); evaluation of territories and real estate transactions (Title VII) ; offences and sanctions (Title VIII); transitional and definitive provisions (Title IX).
In December 2015, the National Transitional Council (acting as interim parliament after the fall Compaoré’s regime) passed a law to regulate the private housing lease called Act No. 103-2015/CNT on the private housing lease in Burkina Faso. In section 6 of the Act, the rent price is set according to the rental value capped at seven percent of the value of the construction of the site. The 2018 government announced that the implementation of this legislation could take months because it must be inclusive and participatory so that all interested parties (donors, civil society organisations, tenants and technical structures) can give their opinions.
[1] Land portal. (No date). Act No. 034-2012 / AN of 2 July 2012 on agrarian and land reorganization in Burkina Faso.https://landportal.org/fr/library/resources/lex-faoc139639/loi-n%C2%B0-034-2012an-du-02-juillet-2012-portant-r%C3%A9organisation-agraire (Accessed 29 August 2019).
Opportunities
The real estate sector is struggling in Burkina Faso. In order to grow it needs to be organised at all levels including promoters, administration and Financial Partners and requires funding, which is difficult to obtain.[1] Some industrial players think that the price of real estate would not be so expensive if the sector did not pay as much taxes or customs and they asked for a tax exemption. The elevated price of building materials, insufficient financing and low purchasing power of households hamper real estate activity in Burkina Faso. The debt market remains inaccessible especially for the economically disadvantaged segments of the population who are most in need. The conditions under which banks provide loans limit demand. The economically disadvantaged have no chance of getting a loan. Those who are eligible consider the interest rate too high, making it difficult to acquire the property.[2]
There are also several opportunities in the rental market.
It should be noted that the State desire to control the price of rent through Law No. 034-2012 / AN of July 2, 2012, which has yet to be promulgated, might send a negative signal to potential investors. With controlled rent levels, real estate companies might reduce investment which would reduce supply, as existing companies would turn away from business and potential investors would no longer be encouraged. In the context of a high demand pressure and lack of supply, prices could then spike, despite the presence of the law of supervision and regulation of rents, difficult to enforce. Alternatively, the liberalisation of rent prices or a random application of the regulatory framework could ensure market supply by continuing to incentivise entrepreneurs to invest and produce. The competition could, if the needs were largely met, bring down market prices and thus reduce the burden of tenant housing expenditure.[3] Moreover, internal and external migration can become an important factor in increasing demand for housing in a country like Burkina Faso, where people living in conflict zones and disadvantaged rural areas are constantly moving to cities in search of peace and employment.
[1] Immo Napace. (2018). The organization of the real estate sector in Burkina Faso. October 6, 2018. https://www.immonapace.com/lorganisation-du-secteur-immobilier-au-burkina-faso/ (Accessed 30 September 2020).
[2] Immo Napace. (2018). Invest in real estate in Burkina Faso. October 6, 2018. https://www.immonapace.com/investir-dans-limmobilier-au-burkina-faso/ (Accessed 30 September 2020).
[3] Akouwerabou, L. (2016) rent control in Burkina Faso: a poisoned measure. 14 March 2016. La libre Afrique. http://www.libreafrique.org/AKOUWERABOU-fixation-prix-loyers-140316 (Accessed 30 September 2020).
Availability of data on housing finance
In contrast to English-speaking countries such as South Africa, Kenya, Tanzania, Namibia and Nigeria, where newspapers regularly report on the housing and real estate situation, in most French-speaking countries, the media are relatively silent on the subject.
It is difficult to obtain a complete analysis of the real estate markets of these countries. Existing information is generally less available to journalists, researchers and consultants and don’t explain the dynamics of the sector, the directions of the market or what prevents it from developing or what its prospects are in the future.
Data are scarce and when available, they are either outdated or subjective and not always reliable. International organisations do not always have all the data on the sector. There is no centralised real estate data collection structure that feeds public and private actors in the housing sector, including media, researchers and consultants working in this area. This lack of information can be seen in particular on the number of mortgages granted, real estate agencies working in the country, the price per square meter of construction, the sale and rental prices, in cities or rural areas.
COVID-19 response
Burkina Faso officially announced it first two cases of coronavirus (COVID-19) in March 2020.
As a consequence Burkina Faso authorities announced that all public demonstrations and rallies were banned in March and April. Following a decline in new cases of COVID-19, in late April and early May, authorities began to ease some social and economic restrictions. Some urban markets and religious places of worship were allowed to reopen on April 20 and May 2, respectively.
The BCEAO announced the creation of a special 3-month refinancing window at a fixed rate of 2.5 percent for a limited amounts of “COVID-19 T-Bills ” to be issued by each WAEMU sovereign to help cover financial needs related to the current pandemic.
Websites
CEGECI : http:// www.cegeci.bf/
Société Générale Burkina Faso https://societegenerale.bf/fr/particuliers
Ebomaf Group http://ebomaf.com
Journal du Net : https://www.journaldunet.com/
Jeune Afrique https://www.jeuneafrique.com
World Food Program https://www.wfp.org/countries/burkina-faso
World Heath Organisation https://www.who.int/fr/
