Housing Finance in Cabo Verde


This profile is also available in French here.

To download a pdf version of a full 2020 Cabo Verde profile, in English, click here.

For the Portuguese version click here.

Carbo Verde (Cape Verde) is an island state with a population of 543 767 with an increasing number of individuals moving from urban areas. Challenges are however experienced in the urban areas and the challenges involve little access to clean water and electricity.

In 2009, the government developed strategies to promote social housing in the country. Out of the estimated 40 000 house units that were at a deficit, government managed to over time make about 16 000 units.

The main economic sectors in Cape Verde are trade, public services, transport and tourism which form part of three quarters of the GDP. Part of what’s currently causing a strain in the transport and tourism industry is the temporary suspension of travels because of the Covid-19 pandemic.

In the banking sector are 2 dominant banks that form 70 percent of the market share, but the challenges with the banking institutions is poor asset quality resulting in low profitability. Cape Verde also has a microfinance sector and in this sector are five microfinance institutions. The challenges the microfinance sector faces are having their services not being commonly known and because of this the sector has a lower market share and to stimulate more interest in the sector there was the establishment of the Support for Microfinance Development which aims to promote inclusive finance.

With Cape Verde being seen as a developing state, there’s a certain level of inequalities with nearly one third of the population living below the poverty line. With the state that Cape Verde is in they have managed to try stabilizing the economy including having a reduction in the costs of necessities.

Affordable houses are being built inside and outside the city centre which are made to accommodate individuals who earn a minimum wage, all of this done to ensure secure living for the population at large. The most affordable one-bedroom apartment is one that’s outside the city centre at a rental of US$130 per month.  The government doesn’t necessarily offer housing subsidies or assistance in the country.

The real estate market is active in Cape Verde, with expensive apartments, the cheapest one being US$373 per month. One of the most profitable housing investments in Cape Verde comes from investing in purchasing a home in Boavista to later rent the place out to tourists and profiting from that. This is a great opportunity to accommodate tourists.

Find out more information on the housing finance sector of Cabo Verde, 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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