Housing Finance in Côte d’Ivoire
Overview
This profile is also available in French here.
To download a PDF full version of the 2023 Côte d’Ivoire country profile, click here.
Côte d’Ivoire (CIV), located in west Africa, is the main economy of the West African Monetary Union (WAMU). In 2021, the country’s GDP increased by 6%, driven on the supply side by critical industries such as building and public works. However, inflation nearly doubled, reaching 4.2% in 2021, due to inadequate domestic output and higher food prices.
The majority of the population lives in cities, accounting for 52.5% of the total population (2021 census). The most populated city is Abidjan, followed by Bouaké (723 549) and Korhogo (384 150). CIV’s population, like that of many African nations, is fairly young, with less than 3% of the population over the age of 65. Young people who are working and moving to cities are making the need for formal housing in cities grow quickly.
In terms of housing supply, the government of Ivory Coast has delivered around 20 000 social and economic units under PPLSE “phase 1” from 2012 to 2020. This was in line with the forward-looking policy to improve access to decent housing for modest-income earners and reduce the housing deficit nationwide.
In 2021, the average salary in the informal, non-agricultural business was estimated to be CFA41,137 (US$65.29). The average income recorded in the formal sector is much greater than that of the informal sector. It is difficult for a household, even with two breadwinners, to qualify for BNI home loans.
Despite the availability of home financing, access to mortgages remains difficult since most households have either low or irregular income, as most Ivorians (more than 80% of the population) earn their living in the informal sector. Mobile money continues to outperform financial institutions in terms of penetration, with the number of accounts expanding from 24% in 2014 to 40% among adults in 2021. Its penetration rate among women remains at 30%, while it is at 51% among males.
The average housing interest rate was recorded at 5.21% in June, making it the most affordable type of credit after cash (5.30%). As of March 2022, there were 292 650 outstanding microfinance loans totaling CFA437 billion (US$693.5 million).There are approximately 19 mortgage originators, all headquartered in Abidjan.
The housing crisis in Ivorian cities has created an opportunity for foreign developers to look at the local market and meet their societal and financial corporate goals. Over 90% of the Ivorian population is below the age of 65, indicating a continuing need for decent and affordable housing for young and mature adults.
Find out more information on the housing finance sector of Cote d’Ivoire, including key stakeholders, important policies, and housing affordability:
- Overview
- Access to Finance
- Affordability
- Housing Supply
- Property Markets
- Policy and Legislation
- Opportunities
- Availability of Data on Housing Finance
- Green Applications for Affordable Housing
- Websites
- Additional Sources
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.
Download yearbookCôte d’Ivoire
Overview
Located in west Africa, Côte d’Ivoire (CIV) is the leading economy of the West African Monetary Union (WAMU) and is experiencing rapid industrialisation and urbanisation The total population is around 30 million (29 389 150), with men representing approximately 51%. More than half of the population live in urban areas as the percentage of the population that is urbanised is 52.5% (2021 census). The most populated city is Abidjan, with over five million, followed by Bouaké (723 549) and Korhogo (384 150). Like many African countries, CIV’s population is quite young, with less than 3% older than 65, while more than 50% are between the ages of 15-64.[1] The influx of a young working population means that the demand for formal housing in urban areas is growing rapidly, but because of a lack of supply and inability of households to access credit, there is a housing deficit, leaving many Ivorians living in informal housing.[2]
The economy remains stable amid COVID-19. The country recorded GDP growth of 6% in 2021, led on the supply side by crucial industries,[3] including Building and Public Works (BTP), and on the demand side by investment and consumption. CIV also recorded improved tax collection and non-tax revenues, thus leading to a budget deficit of 5% of GDP in 2021, marginally lower than in 2020. However, inflation almost doubled, reaching 4.2% in 2021 vs. 2.4% in 2020 due to weak local production and an increase in the prices of food products. In addition, the poverty rate climbed in 2021, due to COVID-19, to 20.2% of the population living on less than US$1.90/day from 18.3% in 2020.[4]
The (BTP) or construction industry has been crucial in stimulating national economic growth since 2012 and continues to perform well. From 2012 to 2018, the sector recorded 26% annual growth, and is the third major employer.[5] Also, its relevance is stressed through government’s large-scale public works policies and project. For example, massive investments were a made in building new roads and maintaining existing ones, erecting stadiums to host the African Cup of Nation (AfCON), putting up industrial areas, and modernising airports.
Housing is another critical sub-sector of construction that receives large investments and particular interest. The government is re-designing the presidential social and economic housing program (PPLSE). With the new Agence Nationale de l’Habitat (ANHA), which will benefit over CFA15 billion (US$23.8 million) of public funds to support access to mortgages for modest-income households, housing becomes a significant recipient of public spending. Such financial and political commitment is expected to generate employment and reinforce the critical role of housing in the current national development strategy until 2025.
CIV is one of the countries worldwide most affected by climate-related extreme weather events such as heavy and inconsistent rainfall, floods, hotter temperatures and rising sea levels. It ranked 130/180 on the 2021 Global Climate Risk Index (GCRI), thus stressing the need to improve climate change response mechanisms. This is largely because CIV is heavily dependent on agriculture (cocoa, coffee, palm oil and cashew nuts) and its natural sources both in terms of revenue and for household income (over 26 million people are engaged in the sector).Environmental degradation and deforestation also contribute to the country’s vulnerability to climate change. [6] Also, according to the World Bank, the losses to GDP associated with climate change are estimated between CFA429,07 billion (US$681 million) to CFA882,07 billion (US$1.4 billion) between 2022 and 2040. To mitigate this threat to climate-sensitive sectors, such as the primary and energy sector, the government has taken several initiatives. Among them, it has committed to reducing its greenhouse gases by 30% by 2030 (COP 26) and to increasing contributions to renewable energy in the energy mix from 39.5% to 42% by 2025.[7] In addition, the government has indicated it will strengthen energy efficiency in the building sub-sectors.[8] However, green housing is still undeveloped, and to date, find no expression in regulations, policies, or laws.[9]
[1] INS (2022). Recensement général de la population et de l’habitat 2021. Rapport détaillé préliminaire. Pg. 12.
[2] Oxford Business Group (2022). How housing demand increases with urbanisation in Côte d’Ivoire. https://oxfordbusinessgroup.com/overview/rapid-expansion-demand-housing-grows-alongside-boom-urban-population. (Accessed on 9 October 2022).
[3] In addition to the BTP or construction, Côte d’Ivoire GDP growth was led by agriculture exports, extractive, and manufacturing industries.
[4] African Development Bank (2022). Côte d’Ivoire Economic Outlook. https://www.afdb.org/en/countries/west-africa/cote-d’ivoire/cote-divoire-economic-outlook (Accessed 9 August 2022).
[5] Jeune Afrique (2020). Pourquoi le secteur Ivoirien de la construction continue de décoller. https://www.jeuneafrique.com/916783/economie/pourquoi-le-secteur-ivoirien-de-la-construction-continue-de-decoller/ (Accessed 9 August 2022).
[6] World Bank. (2022). Climate Change Knowledge portal. Cote d’ Ivoire. Climate Change Summary. https://climateknowledgeportal.worldbank.org/country/cote-divoire (accessed on 9 October 2022)
[7] African Development Bank (2022). Côte d’Ivoire economic outlook. https://www.afdb.org/en/countries/west-africa/cote-d’ivoire/cote-divoire-economic-outlook (Accessed 11 September 2022).
[8] Portail official du gouvernement de Côte d’Ivoire (2021). COP 26: La Côte d’Ivoire s’engage à réduire s emissions de gaz à effets de serre de 30.41%d’ici à 2030. 11 November 2021. https://www.gouv.ci/_actualite-article.php?recordID=12817 (Accessed 11 September 2022).
[9] Interview with Celestin Koala, Director of the Direction of Social Housing of Côte d’Ivoire, November 2021.
Access to Finance
Year-on-year, the bank rate increased by a little more than one percentage point from 19.08% in 2019 to 20.45% in 2020.[1]
Overall, financial inclusion has improved over the last 10 years, but is still low According to the 2021 Global Findex report, 51% of adults (over the age of 15) have an account compared to 34% in 2014.[2] Of that 51%, 21% have an account with a financial institution, a six-percentage point increase from 2014. However, the gender gap in account ownership worsened. From an 11-percentage-point gap between men and women in 2014, it has risen to 27 percentage points. Savings trends considerably declined, falling from over 60% (2014) to below 45% (2021). More adults prefer saving their money using mobile money (16%) than financial institutions (6%).[3]
Four times as many adults own at least a debit card than own a credit card (2%). Women are still less likely to own any of these cards than men. Access to credit remains barely available to half of those financially included (46%). Borrowing trends suggest that men (51%) borrow more than women (41%).
Mobile money continues to record a better penetration rate than financial institutions with the number of accounts increasing from 24% (2014) to 40% among adults in 2021. Its penetration rate among women at 30% remains lower than among men at 51%.[4] In August 2022, there were 11 mobile money operators (MNOs), including one MFI[5] and four partnerships between banks and network companies or technical service providers.[6]
Financial services keep striving to improve proximity with their customers. In 2020, there were 118 service points vs. 115 in 2019 per 10 000 adults[7]. But the rate of adults having no account remains high due to “lack of funds” (70%), “costliness of financial services” (31%), “lack of necessary documentation” (27%), and “financial institutions are too far away” (24%).[8]
The financial sector comprises 29 banks, seven financial companies, 47 microfinance institutions (MFIs), and two financial institutions. Borrowing is relatively affordable, but a mortgage remains inaccessible to modest-income households. The overall average gross interest rate was 5.81% in June 2022. Disaggregating further, credit to individuals is one of the most expensive at 8.45%, while credit to a state-owned-entity is the cheapest at 5.21%.[9]
Housing finance is available and offered irrespective of gender by most commercial banks. The average housing interest rate was recorded at 5.21% in June, making it the most affordable type of credit after cash credit (5.30%).[10] Société Générale de Côte d’Ivoire (SGCI) is the top-rated commercial bank offering mortgage products. As of July 2022, its lowest interest rate was 8.35%, and its maximum interest rate was 9.80% for three to 20 years maximum. Applicants must make a 10% down payment, and the loan-to-value ratio (LTV) is 90%.[11] In early August 2022, Banque Nationale d’Investissement (BNI) launched a 2-week real estate event to facilitate property acquisition and promote access to affordable housing finance for their clients and prospective clients. Housing loans are available for end-users, private developers, and individual developers.[12] The LTV is 70% with a 30% down payment and a 5.99% preferential rate for eight to 20 years maximum.[13] Alongside SGCI and BNI, there are approximately 19 mortgage originators as of 2022, all headquartered in Abidjan.
The informal sector plays a critical role in the economy, with over 70% employed informally[14] and excluded from formal access to banking. Those formally excluded turn to microfinance, thus making it a strong driver of financial inclusion in the country. As of 31 March 2022, the microfinance sector had forty-six accredited social funds for development (SFD), one less than in 2021. Nevertheless, the sector continues recording positive year-on-year growth. The total number of outstanding microfinance loans was 292 650 worth over CFA437 billion (US$693.5 million). Based on the satisfactory performance of microfinance and its proximity with modest-income earners, the CRRH-UEMOA is exploring a mortgage refinance facility for SFDs. This facility is expected to boost access to housing microfinance among low income households.
[1] BCEAO (2021). Rapport sur la situation de l’inclusion financière dans l’UMOA au titre de l’année 2020. https://www.bceao.int/sites/default/files/2021-12/Rapport_Annuel_Situation_Inclusion_Financière_UEMOA_2020.pdf (Accessed 11 August 2022). Pg. 22.
[2] World Bank (2022). The Global Findex database 2021. https://www.worldbank.org/en/publication/globalfindex (Accessed 11 August 2022). Pg. 21.
[3] World Bank (2022). The Global Findex database 2021. https://www.worldbank.org/en/publication/globalfindex (Accessed 11 August 2022). Pg. 25.
[4] World Bank. The Global Findex database 2021. https://www.worldbank.org/en/publication/globalfindex (Accessed 12 August 2022).
[5] CELPAID: celpaid money.
[6] BCEAO (2022). Établissement de monnaie électronique 2022. https://www.bceao.int/fr/content/etablissements-de-monnaie-electronique (Accessed 24 August 2022).
[7] BCEAO (2021). Rapport sur la situation de l’inclusion financière dans l’UMOA au titre de l’année 2020. https://www.bceao.int/sites/default/files/2021-12/Rapport_Annuel_Situation_Inclusion_Financière_UEMOA_2020.pdf (Accessed 11 August 2022). Pg. 18.
[8] World Bank. The Global Findex database 2021. https://www.worldbank.org/en/publication/globalfindex (Accessed 12 August 2022). In addition to the 4 barriers mentioned, the database includes, “lack of trust in financial institutions”, “religious reasons”, and “someone in the family already having an account”.
[9] BCEAO. Bulletin mensuel des statistiques – Juin 2022. https://www.bceao.int/sites/default/files/2022-07/Bulletin%20Mensuel%20des%20Statistiques-Juin%202022.pdf (Accessed 11 August 2022). Pg. 44.
[10] BCEAO. Bulletin mensuel des statistiques – Juin 2022. https://www.bceao.int/sites/default/files/2022-07/Bulletin%20Mensuel%20des%20Statistiques-Juin%202022.pdf (Accessed 11 August 2022). Pg. 44.
[11] SGCI (2022). Conditions appliquées aux operations bancaires. https://societegenerale.ci/fileadmin/user_upload/cote_ivoire/PDF/brochure_tarifaire_pri.pdf (Accessed 24 August 2022). Pg. 7.
[12] Borrowers wishing to build their property themselves.
[13] BNI. Produits et services – particuliers – Offres promotionnelles. https://www.bni.ci/produits-services/particuliers/offres-promotionnelles/211-quinzaine-immobilier (Accessed 24 August 2022). See also Batirici (2022). La BNI lance une “quinzaine de l’immobilier” pour faciliter l’acquisition de logements. 12 aout 2022. https://www.batirici.ci/btp-cote-divoire-la-bni-lance-une-quinzaine-de-limmobilier-pour-faciliter-lacquisition-de-logements/ (Accessed 24 august 2022).
[14] IFC (2020). Creating markets in Côte d’Ivoire. https://www.ifc.org/wps/wcm/connect/c3d1ae63-80d1-44a7-8b5f-959e38b4fd09/CPSD-Cote-d-Ivoire.pdf?MOD=AJPERES&CVID=nk4XA5J#:~:text=The%20informal%20sector%20represents%2080,with%20relatively%20large%20manufacturing%20firms. (Accessed 19 September 2022). Pg. 11.
Affordability
COVID-19 hit household economic welfare. Approximately 40% of adults indicated turning to their families or friends as the main source of emergency funds, with only 3% choosing banks.[1] Unemployment also worsened despite the government efforts to create a resilient economic environment. Before 2020, it was estimated at 3.3% (2017-2019). In 2020-2021, it increased by 0.2 percentage points to reach 3.5%.[2] This was due to the loss of employment recorded (approximately 1.5 million) from January to February 2020, including the loss of approximately 900 jobs in the informal sector. Compared to rural areas, Abidjan recorded the highest job losses of approximately 500 000.[3]
Despite housing finance being available, access to mortgages remains prohibitive because most households have either low or irregular income as most Ivorians (over 80% of the population) derive their income from the informal sector.[4] In 2021, it was suggested that the average income in the informal non-agricultural industry was CFA41 137 (US$65.29).[5] In the formal sector, the average salary recorded is significantly higher than in the informal sector, though the informal sector employs most people (approximately 90%). For example, the average salary of a police officer is CFA210 000 (US$333.31) and that of a security guard CFA80 000 (US$127.0).[6]
Comparing these average salaries[7] to affordable housing shows the financial constraints to accessing housing finance. For example, the minimum instalment for a CFA12.5 million (US$19 839.62) loan at 5.99% (the cheapest housing under the presidential social and economic housing programme) at BNI for up to 20 years would require an average payment of CFA89 481.78/month (US$142). Including insurance and other extra costs, the monthly repayment might amount to roughly CFA96 837.35 (US$153.70).[8] Based on the average salary in the informal sector, it is impossible for a household, even with two breadwinners, to access the BNI housing loans. In addition, such a monthly instalment remains relatively costly for a minimum salaried police officer (and completely inaccessible to a security guard), given the borrower’s ratio of monthly bond cost to salary is almost 50%. Another prohibiting factor is the 30% down payment required from any mortgage borrower. Unless a borrower has an additional source of income or is a household with two salaried individuals, most banks will be reluctant to grant a mortgage loan to a modest-income borrower where the income ratio is beyond 30-35%.
Therefore, in early 2022, to mitigate the affordability gap, the government dissolved the Compte de Mobilisation pour l’Habitat (CDMH) (Housing Mobilisation Account)and Housing Support Fund (FSH) and replaced them with the Fonds de Garantie pour le Logement Social (FGLS). Additionally, the government created the National housing Agency (ANHA) in 2021 to replace the newly deregistered public developer company, the Ivorian Construction and Property Management Company (SICOGI). ANHA is tasked with promoting access to affordable housing (for ownership and rental) as well as improving and maintaining the urban environment.
[1] World Bank. The Global Findex database 2021. https://www.worldbank.org/en/publication/globalfindex (Accessed 12 August 2022).
[2] Trading Economics (2022). Côte d’Ivoire – Taux de chômage. https://fr.tradingeconomics.com/ivory-coast/unemployment-rate (Accessed 26 August 2022).
[3] Institut National de Statistique (2021). Évaluation des effets de la COVID-19 sur les unités de production informelles en Côte d’Ivoire. http://www.ins.ci/templates/docss/RAPPORT_COVID19_UPI%20PHASE%204_06102021_VF.pdf (Accessed 26 August 2022). Pg. 9.
[4] Oxford Business Group (2022). How housing demand increases with urbanisation in Côte d’Ivoire. https://oxfordbusinessgroup.com/overview/rapid-expansion-demand-housing-grows-alongside-boom-urban-population. (Accessed on 9 October 2022).
[5] Institut National de Statistique (2021). Évaluation des effets de la COVID-19 sur les unités de production informelles en Côte d’Ivoire. http://www.ins.ci/templates/docss/RAPPORT_COVID19_UPI%20PHASE%204_06102021_VF.pdf (Accessed 26 August 2022). Pgs. 8.
[6] Interview with Williams Bella, managing director of Property KRO, 29 August 2022, Côte d’Ivoire.
[7] Both in the formal and informal sectors.
[8] The increase is based on an estimated rate of 6.99% (including all taxes).
Housing Supply
The housing backlog is estimated at more than 500 000 units, increasing by 10% yearly. Given the demographic pressure in Abidjan, for example, most households (approximately 70%) rent.[1]From 2012 to 2020, the government delivered around 20 000 social and economic units under the PPLSE ‘phase 1’. This was in line with the forward-thinking policy to improve access to decent housing for modest-income earners and reduce the housing deficit pressure nationwide.
In 2022, housing remains at the heart of the government development policy. The re-launch and re-design of the PPLSE is one piece of evidence, among many others, of the importance of this sector in the National Development Plan (PND) 2021-2025. Thus, the PPLSE ‘phase 2’ aims at delivering 150 000 social and economic units by 2025.
Bonus Expertises, a local private developer, recently committed (August 2022) to build 5 000 units for the Ministry of Agriculture’s public servants. Beneficiaries of this project will be afforded 100% financial support over a maximum of 14 years. Unit prices will range from CFA17 million (US$26 982) to CFA36 900 000 (US$58 566). Each beneficiary will make a 15% down payment at the program inception and will have to subscribe to mandatory insurance to cover them in case of death, default payment, and accidents.[2]
In April 2022, the Ministry of Housing, Construction, and Urbanism (MCLU) signed a memorandum of understanding with the Ivorian-British group of companies consisting of OPES Holding, a local private developer, and Strong Form, a British developer, to build 20 000 social and economic units.[3]
The MCLU has invited international developers to support the PPLSE phase 2. For instance, Minister Bruno Koné (MCLU) met with Maison Adorable, a large-scale French private developer, in December 2021 to explore the company’s role in delivering affordable units in CIV.[4] NHOOD, another French private developer, also indicated its interest in participating in the PPLSE phase 2 to provide decent affordable units.[5]
Alongside the PPLSE, the real estate sector shows some encouraging trends. Local private developers are dynamic and innovative. The project Cité Général Mathias Doué – El Kana (CGMD) is an example. It is a green and environmentally friendly large-scale housing project that includes amenities such as schools, stadiums, shops, a health centre, green spaces, playgrounds, gas supply by integrated installation, and a household waste recycling centre. CGMD started in October 2021 and is currently under the land development and land servicing phase. The project site covers a few hectares and is 7km away from Abidjan, in the village of Ahoué, on the road to Alépé. CGMD targets both locals and the Ivorian diaspora. The first phase is expected to deliver 133 townhouses of three to four bedrooms of between 200m2 – 250m2,[6] and the long-term objective is to produce more units.[7]
Moreover, OPES Holding’s rent-to-own housing first phase aims to deliver 2 000 units by the end of 2022. The scheme aims to deliver 40 000 housing units developed on 128ha. Tenants will have a maximum of 25 years to achieve their ownership rights. OPES is partnering with international companies to provide the necessary collateral and with the government to share the cost of land servicing to ensure the project’s full completion. Overall, the scheme is divided into three phases, with delivery objectives of the second and third phases being 15 000 and 23 000 units, respectively.[8]
Furthermore, the government has implemented remedial measures to improve the current housing stock. For example, in January 2022, it committed to supporting slum dwellers by restructuring slums and precarious neighbourhoods. This restructuring intends to improve the quality of life of slum dwellers by raising the level of basic urban services such as roads, sanitation, electricity, drinking water supply, and socio-educational services. Part of the project cost is estimated at CFA32 billion (US$50.8 million) and will be financed by Agence Française de Développement (AFD). The first phase will target crowded popular areas like Yopougon (Gesco), Abobo (Agoueto PK 18), and Koumassi (grand campement, Akromiabla, and Divo 1&2).[9]
[1] CAHF (2018). Colli C. et al. Understanding & quantifying rental market markets in Africa: Côte d’Ivoire. https://housingfinanceafrica.org/documents/understanding-quantifying-rental-markets-in-africa-cote-divoire/ (Accessed 19 September 2022).
[2] N’Guessan, A. (2022). Bonus Expertises va construire 5000 logements au profit des agents du Ministère de l’Agriculture. 12 aout 2022. BATIRICI. https://www.batirici.ci/btp-cote-divoire-bonus-expertises-va-construire-5-000-logements-au-profit-des-agents-du-ministre-de-lagriculture/ (Accessed 28 August 2022).
[3] Chrésus, J . (2022). Côte d’Ivoire: Programme présidentiel de logements sociaux, un protocole d’accord signé par Bruno Koné pour une production en masse pour combler le deficit. 27 Avril 2022. Koaci. https://www.koaci.com/article/2022/04/27/cote-divoire/economie/cote-divoire-programme-presidentiel-de-logements-sociaux-un-protocole-daccord-signe-par-bruno-kone-pour-une-production-en-masse-pour-combler-le-deficit_159560.html (Accessed 28 August 2022).
[4] N’Guessan, A. (2021). Logements sociaux: la société de construction Française ‘Maison abordable’ se signale. 19 December 2021. BATIRICI. https://www.batirici.ci/btp-cote-divoire-logements-sociaux-la-societe-de-construction-francaise-maison-adorable-se-signale/ (Accessed 28 August 2022).
[5] BATIRICI (2021). Logements sociaux: l’operateur immobilier NHOOD disposé à accompagner le gouvernement. 26 June 2021. https://www.batirici.ci/btp-cote-divoire-logements-sociaux-loperateur-immobilier-francais-nhood-dispose-a-accompagner-le-gouvernement/ (Accessed 28 August 2022).
[6] N’Guessan, A. (2021). L’athlète international Murielle Ahouré lance un projet immobilier. 11 October 2021. BATIRICI. https://www.batirici.ci/btp-cote-divoire-lathlete-internationale-murielle-ahoure-lance-un-projet-immobilier/ (Accessed 28 August 2022).
[7] N’Guessan, A. (2022). Adonis S. Lancement des travaux de la cite Mathias Doué. 21 juillet 2022. BATIRICI. https://www.batirici.ci/btp-cote-divoire-immobilier-lancement-des-travaux-vrd-de-la-cite-mathias-doue/ (Accessed 28 August 2022).
[8] Interview with Siriki Sangaré, President of the National Association of Private Developers and CEO of OPES Holding, 26 August 2021, Côte d’Ivoire.
[9] Portail official du gouvernement de Côte d’Ivoire (2022). Democratisation de l’acces au logement : l’état lance un projet de restructuration de quartiers precaires à abidjan et redynamise le programme de logements sociaux. 14 Janvier 2022. https://www.gouv.ci/_actualite-article.php?recordID=13023&d=1 (Accessed 28 August 2022).
Property Markets
National data shows a dynamic property market with significant variation around key indicators. In 2021, the total number of conventional mortgages decreased compared to 2020, from 2 030 to 1 795, with over 70% recorded in Abidjan. In contrast, the total number of notarised sales increased over the last year from 5 258 (2020) to 6 967 (2021), with 4 774 transactions recorded in Abidjan. In addition, over 20 000 title deeds were delivered in 2022 nationwide (approximately 10 000 in Abidjan). [1]
To improve issuing construction permits and the key land-related indicators of the business climate, the government launched the urban land digitisation project to create an Integrated Urban Land Management System (SIGFU).
The real estate market in Abidjan is one of the most dynamic in the WAEMU, with 18% annual growth recorded since 2011. It is also among the most attractive in the subregion, especially in the residential rental segment. Rental yields vary from 9% for offices, 8% for retail, 12% for industrial real estate, and 6% for prime rental residential in neighbourhoods such as Marcory, Cocody, and Riviera. With fewer COVID-19 cases being recorded and the return of expatriates, residential activities are booming further east of Abidjan, recording a rising number of sale transactions. According to the Frank Knight Africa report 2022/23, “rents too are rising and have increased by 10% in the last 12 months, which have prevented yield compression.” For example, a four-bedroom apartment rented for US$5 000/month in 2021 is US$5 500/month in 2022. [2]
However, uncertainties abound. For instance, there is no real discipline in the property valuation system. Many properties have increased in value over the years, even amid the pandemic. Such an uncontrolled speculative environment shatters many households’ dream of property ownership. The land price ranges from CFA2 000/m2 (US$3.17) on the outskirts of Abidjan to CFA1.5 million/m2 (US$2 380.75) in the prime areas of Plateau, Marcory and Cocody. The cost of the transaction (rental and sale) is also highly speculative. Some homeowners unilaterally decide the rental value of their property and conditions. There is also no real discipline here since the price gap may vary highly from owner to owner despite the property being in the same neighbourhood.[3]
By mid-2022 the price of the cheapest newly built house by a private developer was approximately CFA10 million (US$15 871.7),[4] 20% costlier than a year ago. Though pricier, this house is larger, built on 12om2 (vs. 45m2 in 2021). According to local experts, rent for the same house is estimated at CFA60 000 – CFA100 000 (US$95.2 – US$158.7).[5] But in 2022, despite the current high inflationary environment, the government reaffirms its commitment to offer the cheapest newly-built social unit at CFA12.5 million (US$19 839.62). The cost of labour per m2 is CFA25 000 (US$39.68).
[1] Direction Générale des Impôts (DGI) (2021). Statistiques immobilières au titre de l’année 2021. https://www.dgi.gouv.ci/index.php/archives/35-transfert-de-propriete/189-statistiques-immobilieres (Accessed 28 August 2022).
[2] Knight Frank (2022/23). The Africa Report. https://content.knightfrank.com/resources/knightfrank.com/reports/africareport/the-africa-report-2022.pdf (Accessed 28 August 2022). Pg. 8.
[3] Zéhouri, BPA. (2021). L’inquiétude des ivoiriens face à la hausse des prix de l’immobilier (Libre opinion). 30 September 2021. Abidjan.net https://news.abidjan.net/articles/698206/linquietude-des-ivoiriens-face-a-la-hausse-des-prix-de-limmobilier-libre-opinion (Accessed 28 August 2022).
[4] Interview with Williams Bella, managing director of Property KRO, 29 August 2022, Côte d’Ivoire.
[5] Interview with Williams Bella, managing director of Property KRO, 29 August 2022, Côte d’Ivoire.
Policy and Legislation
CIV has a comprehensive set of regulations, policies, and laws targeting each specific component of the housing value chain. The Ministry of Construction, housing and Urban Planning (MCLU) manages the implementation of government policy, oversees developers and improves access to housing. The Construction and Housing Code was introduced in 2019 to better regulate the real estate sector, improve building safety and curb unauthorised construction (with an estimated 80% of construction being built without the necessary permits). In 2022 a brigade was introduced to reduce illegal construction, supported by the Directorate of Urban Sanitation and Drainage.[1]
The government adopted the Programme National d’Éducation Financière (PNEF) in 2020 to give financial education to those with low income and prepare them to access financial services.[2] This programme might be beneficial to democratising information around housing finance among those in need. In addition, it might improve the financial acumen of households so that they understand and adopt productive behaviour to access housing finance.
Men and women are afforded the same rights to access land and private property. Statutory laws do not differentiate based on gender. Since law 2013-33 of 25 January 2013 amended by law 2019-570 of 26 June 2019, men and women are considered “head of the family.”[3] Married women are not subject to their husband’s approval when exercising their fundamental rights, save that they freely agree to do so. However, assessing the impact of such a gender-parity-based policy is challenging when gender-based data are not readily available. On rural land, the coexistence of statutory and customary laws might threaten women’s access to land in a specific area. Culturally, gender parity does not exist.
[1] Oxford Business Group (2022). How housing demand increases with urbanisation in Côte d’Ivoire. https://oxfordbusinessgroup.com/overview/rapid-expansion-demand-housing-grows-alongside-boom-urban-population. (Accessed on 9 October 2022).
[2] BCEAO. Rapport sur la situation de l’inclusion financière dans l’UMOA au titre de l’année 2020. https://www.bceao.int/sites/default/files/2021-12/Rapport_Annuel_Situation_Inclusion_Financière_UEMOA_2020.pdf (Accessed 11 August 2022). Pg. 4.
[3] Lebanco (2022). Diomandé K. Enquête du jeudi: Mari et femme conjointement chef de famille: comment ça marche? https://www.lebanco.net/news/44597-enquete-du-jeudi-mari-et-femme-conjointement-chefs-de-famille-comment-ca-marche.html#:~:text=Depuis%202013%2C%20l’homme%20n,a%20%C3%A9t%C3%A9%20revue%20en%202019. (Accessed 11 September 2022).
Opportunities
Most households derive their income from the informal sector. Thus, the economic performance of this sector remains critical to many households and to ensure social welfare, especially in times of crisis. Aware of this, the government adopted a series of innovative changes in both the institutional and, legal and regulatory frameworks. These changes aim to include the diversity of social classes in designing and implementing public housing policies while promoting a good investment environment for key stakeholders operating, or interested, in affordable housing.
In addition, the re-launch and re-design of the PPLSE with the same goal of delivering 150 000 social and economic units over the next few years reinforces the current government commitment to make access to affordable units a reality soon. And the program implementation strategy is open and seeks international collaboration with international private developers. The diversity of developers is an opportunity for foreign companies and investors to look at the local market capacity and meet their societal and financial corporate goals.
Furthermore, the latest social and demographic figures in the 2021 census also show some positive trends for the future of housing. Over 90% of the Ivorian population is below the age of 65. Coupled with the fast population growth, this indicates a continuing need for decent and affordable housing for young and mature adults now and in the next generation.
Availability of Data on Housing Finance
The National Institute for Statistics is responsible for ensuring the technical coordination of the national statistical system and for producing and disseminating statistical data for the government, the public administration, and the private sector and development partners.
With the support of the African Development Bank, the government of Côte d’Ivoire has put an open-data platform in place which provides relatively updated information on the country’s housing sector.
The National Fiscal Direction provides information on private property tax, the application and tracking process, conventional mortgages, and notarised sales of land and property.
The central bank and international organisations such as the World Bank provide updated information on the financial sector and some aspects of the housing finance sector. Obtaining updated information on housing loans remains difficult.
Green Applications for Affordable Housing
The government is actively involved in the fight against climate change. As part of its current commitment (among many others) to protect the environment and mitigate the adverse impact of climate change on its economy, it recently participated in COP 26 in Glasgow, Ecosse. But despite the government’s climate change engagement, green housing is not yet developed, and there are no express regulations, policies, or laws on the matter.
However, the IFC is scrutinising the construction sector to identify private developers who might meet some of its EDGE certification requirements. The objective will be to equip them with the right tools to become pioneers in the local green housing sector. The IFC EDGE certification provides extensive training in green building methods and access to green finance.
Websites
National Institute of Statistics https://www.ins.ci/
National Fiscal Direction https://www.dgi.gouv.ci/
Central Bank of West Africa States https://www.bceao.int/
Association Professionelles des Banques et Etablissements Financier de Cote d’Ivoire http://www.apbef-ci.net/
National Investment Bank https://www.bni.ci/index
Ministry of Construction, Housing and Town Planning http://construction.gouv.ci/ Ministry of Economy and Finance https://www.tresor.economie.gouv.fr/
Property KRO (PKRO) https://www.propertykro.com/
Additional Sources
The World Bank (2015). Republic of Côte d’Ivoire. Côte d’Ivoire Urbanization
Review.https://openknowledge.worldbank.org/bitstream/handle/10986/22896/Final0Out
put.pdf?sequence=1&isAllowed=yIndex Mundi: https://www.indexmundi.com/cote_d_ivoire/urbanization.html
PLOS: https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0202928
