Housing Finance in Cabo Verde


This profile is also available in French here.

To download a pdf version of a full 2021 Cabo Verde profile, in English, click here.

For the Portuguese version click here.

Cape Verde is a volcanic archipelago of 10 islands and eight islets located approximately 550km off the coast of Senegal, covering 4 033km2. The housing deficit in Cape Verde is high, affecting middle-income households and even more so the low-income population, who are excluded from the formal housing market. The housing deficit is estimated at approximately 42 000dwellings, 70.7% of which is urban. Approximately 68 000 dwellings are inadequate. In urban areas, more than half (51.6%) of the total number of formal housing units are inadequate. According to the 2010 census, only 54.4% of households have access to the public water supply system. In urban areas, 60.8% of dwellings have a public water supply, and of these 53.8% have piped water services inside the dwelling.

The country’s strong economic performance is mainly attributed to significant investment in infrastructure related to the promotion of the country as a tourist destination. Tourism plays a major role in the economy, accounting for 45% of GDP and 39% of employment. However, the country has limited natural resources, an arid climate, and suffers from water shortages, resulting in long-term drought cycles, all of which have contributed to large-scale emigration. As a result, the diaspora population is larger than that of the country.

The global economic downturn triggered by the COVID-19 crisis has had an impact on the real estate sector. These economic repercussions are preventing the major players in housing finance from securing the cash flow needed to make loans and are affecting the repayment plans of some households’ original loans. Despite government’s resolve to reduce the housing deficits, particularly among the poorer sections of the population, the trend is towards intensification of informal settlements, which is becoming an increasingly complex problem for local authorities.

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 2021 edition, which has up-to-date profiles for 55 African countries.

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