Housing Finance in Côte d’Ivoire
Overview
This profile is also available in French here.
To download a PDF full version of the 2021 Côte d’Ivoire country profile, click here.
Côte d’Ivoire is a West African country with an estimated population of 27 175 800 as of 2021. The main cities are Abidjan, the economic capital, and Yamoussoukro, the political capital. The country is made up of four regions and enjoys an equatorial and southern savanna climate. Slightly over half of its population, approximately 51.3%, lives in urban areas. With its growing population, the Government of Côte d’Ivoire faces tremendous challenges around access to the property and secured land. Informal housing is common in urban and peri-urban areas and these informal houses are usually built on publicly owned land.
Since 2012 the country has enjoyed vibrant economic growth at an annual rate of 8%. However, COVID-19 has dampened economic growth, with contractions recorded in key economic sectors such as agriculture at -2.2%, forestry at -16.5%, and petroleum products at -26.9%. Consequently, in 2020 real gross domestic product (GDP) was 1.8%, well below the 6.23% recorded in 2019. Inflation reached 1.8% due to higher food and transport prices. Even though inflation is high compared to 2019 (0.8%), inflation remains under control and under the Central Bank of West African States (BCEAO) 3% threshold.
The construction sector remains one of the pillars of the country’s national economy, and in 2019 it was one of the main drivers of growth. However, due to the pandemic, the sector’s growth slowed, as did the national housing sector. This was due to many factors, including COVID-19, which heightened the level of financial insecurity among many households. In 2020 the number of rental and sale property transactions declined, and many construction projects were halted. Given the reported strong dependence on the informal sector in the national economy, access to housing finance from traditional financial institutions has proved challenging, especially for those deriving their income from the informal sector. The 2021 census, which was due to start in November, will seek to provide up-to-date information and data on demographics, household structure, and expenditures, spatial repartition, social and economic characteristics of the country to help the government tailor better policies and responses to the national housing challenge.
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
- Urban Informality
- Websites
- Additional Sources
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.
Download yearbookCôte d’Ivoire
Overview
Côte d’Ivoire’s economic growth has slowed but remained high at 6.86 percent in 2019, significantly above the West African Monetary Union (WAMU) average of 6.6 percent.[1] Côte d’Ivoire gained 12 places in the World Bank Doing Business 2019 ranking (110 out of 190 countries). The momentum to maintain a sustained growth regime over the medium term remains. The Ministry of Construction, Housing and Urban Development (MCLU) is concerned about two indicators – the granting of building permits and the transfer of property ownership.[2] The process of registering a property remains at 30 days and six procedures and, although unaffordable for most of the population, it is among the lowest in the region.
An economic slowdown in 2020 is likely, linked to the COVID-19 pandemic and the possibly of presidential elections that could weaken private sector arrangements. Growth could fall to 2.7 percent. The International Monetary Fund expects a strong rebound to 8.7 percent by 2021.[3] The monetary stability guaranteed by the WAMU has kept inflation low (-1.1 percent in 2019 according to the World Bank). In 2020, the Central Bank of West Africa States (BCEAO) forecast that “the inflation rate will continue to rise” at around 1.9 percent in August 2020, “mainly due to continued increases in food and oil prices, in a context where markets will be under-supplied with local products”.[4] A survey from the Ministry of Planning and Development noted a decrease of 82 percent decrease in turnover (compared to March 2019) and an estimated decline in employment of 39 percent.[5]
Despite this, the government continues to implement its economic and financial programme, notably through reforms outlined in the National Development Plan 2016-2020, including a social and economic housing construction programmme (150 000 housing units by the end of 2020). Foreign investment is welcomed, particularly in the real estate development sector. Moreover, with a turnover of CFA1.562 billion in 2018 (US$2.673 million), the Ivorian construction sector and public works sector is, according to a study by GIBTP (Ivorian Building and Public Works Group), the third largest sector providing employment through 3 048 companies in real estate.[6] The entire production chain has contributed to reducing the housing deficit in the country from 400 000 to 600 000.[7] Since last year, it is even possible to buy cement bags via an e-commerce platform.[8] The growth of producers of local materials is also a factor in this development.
[1] BCEAO (2020). Annual Report 2019. Central Bank of West Africa States. https://www.bceao.int/sites/default/files/2020-06/Rapport%20annuel%202019%20de%20la%20BCEAO_0.pdf (Accessed 31 August 2020). Pg. 51.
[2] MCLU (2020). Doing Business at the Exchange Center between the Minister Bruno Nabagné Kone and the Ministry, to the Prime Minister, Charge of Private Investment Promotion. Ministry of Construction, Housing and Urban Development. http://construction.gouv.ci/le-doing-business-au-centre-des-echanges-entre-le-ministre-bruno-nabagne-kone-et-le-ministere-aupres-du-premier-ministre-charge-95 Billion of -the-promotion-of-prive-investment/ (Accessed 31 August 2020).
[3] Ministry of Economy and Finance (2020). Economic and financial situation.
https://www.tresor.economie.gouv.fr/PagesInternationales/Pages/6522dfbe-111b-43db-b209-5ef01b7fc60a/files/3d91a5bc-a7a5-4d7d-96e8-90bd523017b3 (Accessed 31 August 2020). Pg. 2.
[4] BCEAO (2020). Monthly Note on economic report in the WAMU countries at the end of May 2020. Central Bank of West Africa States. https://www.bceao.int/sites/default/files/2020-07/Note%20mensuelle%20de%20conjoncture%20fim%20mai%20UEMOA.pdf (Accessed 7 August 2020). Pg. 5.
[5] Ministry of Planning and Development (2020). Evaluation of the impact of COVID-19 on the informal sector. Pg. 7.
[6] Darras, R. (2020). Côte d’Ivoire: a real estate boom ‘reserved’ for the happy few. 5 February 2020. Jeune Afrique. https://www.jeuneafrique.com/mag/889783/economie/cote-divoire-un-boom-immobilier-reserve-aux-happy-few/ (Accessed 12 August 2020).
[7] National Institute of Statistics (2015). Household living standards survey.
[8] Abidjan.net (2019). E-commerce: Aries cement sold on Jumia with huge benefits. 24 June 24 2019. https://news.abidjan.net/h/659306.html (Accessed 12 August 2020).
Access to Finance
Financial Inclusion in the country is in constant evolution, with mobile money driving its overall progress. According to the BCEAO, financial inclusion in Côte d’Ivoire, at 77.9%, was the highest in the West African Economic and Monetary Union (WAEMU), followed closely by Benin, at 77.8%, in 2019. The strict banking rate among the adult population was 19.1%, while the extended banking rate was 30.8% in 2019. The global demographic penetration rate of financial services and the global geographic penetration rate of financial services has improved and in 2019 the country had 115 service points per 10 000 adults and 574 service points over 1 000km2. This performance was partly due to e-money institutions moving closer to their customers and providing services through small businesses like kiosks and street shops. From 2014 to 2017, access to financial institution accounts remained constant at 15%, while the share of adults with a mobile money account rose by 40%.
The financial sector comprises 29 banks, seven financial companies, 47 microfinance institutions (MFIs), and two financial institutions. The cost of credit is relatively high, thus restricting access to credit from formal institutions to a specific category of households. The average bank prime rate in June 2021 was 10.89%, with an average debtor rate of 14.57%. The prime rate may reach a maximum of 18% and the debtor rate 24%. In March 2021, the total outstanding net customer credit from banks and financial institutions was CFA8 571.7 billion (US$15.4 billion), representing approximately 30% of the WAEMU portfolio (CFA24 518.8 billion) (US$ 44.3 billion). The quality of the customer loan portfolio is relatively good despite bad debts. The total amount of bad debts was reported at CFA 234.8 billion (US$424.2 million) on March 21, 2.7% of net customer loans. Private companies are the primary providers of credit facilities, representing over twice the total number of loan beneficiaries among individuals in the country.
Housing finance is available from a wide range of actors. Commercial banks offer mortgages at an average rate of 6.1%. In 2020, the total mortgages outstanding was estimated at CFA182.9 billion (US$330 million), making housing loans the fifth important sector by credit allocation in the country after treasury loans, personal loans, equipment loans, and other loans. Housing loan interest rates are among the highest in the country, with an average debtor rate of 7.02%, following exportation and equipment loans, at 7.68% and 7.29%, respectively. Société Générale des Banque de Côte d’Ivoire (SGBCI) is a top-rated commercial bank in the country that also offers mortgage products. As of 2021, its lowest interest rate is 9.35%, and its maximum interest rate is 10.505% for a minimum of three and a maximum of 20 years. Applicants must make a 10% down payment, and the loan to- value ratio is 90%. Alongside SGBCI, there were approximately 15 mortgage originators as of 2017, all headquartered in Abidjan.
The national economy is firmly based on the informal sector, and 80% of the population does not use banking facilities. Due to COVID-19, the financial industry’s market performance indicators plummeted. In June 2021, the sector had 47 accredited MFIs, and the total amount of outstanding microloans accounted for CFA413.5 billion (US$747.4 million), while the total outstanding deposits were CFA424.2 billion (US$799.2 million). The total number of microfinance clients climbed to almost four million.
Only Union Nationale des Cooperatives d’Epargne et de Crédit provides construction and home improvement finance. Other MFIs in the country. such as the Mutuelle des Agents de l’Eau et de l’Électricté MA2E, Caisse Rurale d’Épargne et de Prêts d’Abengourou and Caisse d’Épargne des Personnels de l’Éducation de Côte d’Ivoire, provide direct or indirect support for housing finance.
[1] CAHF (2019). Housing Finance in Africa. A review of Africa’s housing finance markets 2019. Centre for Affordable Housing Finance in Africa.
[2] BCEAO (2020). Banking landscape as of May 31, 2020. Central Bank of West Africa States. https://www.bceao.int/fr/content/paysage-bancaire (Accessed 7 August 2020).
[3] CAHF (2020). Case study – The role of COOPEC in housing finance in Côte d’Ivoire. Centre for Affordable Housing Finance in Africa. https://housingfinanceafrica.org/app/uploads/Etude-de-Cas-SACCO-_final_EDITED.pdf (Accessed 7 August 2020). Pg. 7.
[4] BCEAO. (2020). Monthly economic report in UEMOA countries at end-May 2020. Central Bank of West Africa States. https://www.bceao.int/sites/default/files/2020-07/Note%20mensuelle%20de%20conjoncture%20fim%20mai%20UEMOA.pdf (Accessed 7 August 2020). Pg. 5.
[5] Ibid.
[6] Ibid. Pg. 31.
[7] Ibid. Pg .40.
[8] Interview with Ishmael Fanny, Deputy Executive Director at ABPEF-CI, August 18, 2020, Abidjan, Ivory Coast.
[9] CRRH-UEMOA. Missions and activities. Regional Mortgage Refinancing Fund. (Accessed 19 August 2020).
[10] Ministry of Economy and Finance (2019). Home loans: the interest rate rises to 5.5% per year for buyers. https://finances.gouv.ci//actualites/gouvernance-et-reformes/65-contenu-dynamique/actualite/530-prets-aux-logements-le-taux-d-interet-passe-a-5-5-par-an-pour-les-acquereurs (Accessed 31 August 2020).
[11] Interview with Ishmael Fanny, Deputy Executive Director at ABPEF-CI, 18 August 2020, Abidjan, Ivory Coast.
Ministry of Economy and Finance (2020). Directorate of Regulation and Control of Decentralized Financial Systems. https://microfinance.tresor.gouv.ci/micro/2020/03/03/chiffres-cles-du-secteur-au-31-mars-2020/ (Accessed 11 August 2020).
[13] Ibid. Pg. 18.
[14] CAHF (2020). Case study – the role of COOPEC in the housing finance in Côte d’Ivoire. Centre for Affordable Housing Finance in Africa. https://housingfinanceafrica.org/app/uploads/Etude-de-Cas-SACCO-_final_EDITED.pdf (Accessed 11 August 2020). Pg. 4.
[15] Ibid. Pg. 4.
[16] Ibid. Pg. 10.
[17] CAHF (2020). Case study – the role of COOPEC in housing finance in Côte d’ivoire. Centre for Affordable Housing Finance in Africa. https://housingfinanceafrica.org/app/uploads/Etude-de-Cas-SACCO-_final_EDITED.pdf (Accessed 11 August 2020). Pg. 10.
Affordability
The current housing demand in Côte d’Ivoire is estimated to be more than 500 000 units, increasing by 10% a year. Before the pandemic, the Centre for Affordable Housing Finance in Africa (CAHF) conducted a survey covering 89% of households in Abidjan. The survey indicated that 94% of households surveyed earned less than CFA300 000 (US$ 542.25). As a result, most households choose to rent instead of owning property, given their low purchasing power. Since the start of the pandemic, the level of financial insecurity has heightened among households. According to a survey of 800 households in Côte d’Ivoire in 2020, 71% reported a fall in revenue. As a result, most households cannot cover their housing expenditure and rent payments. Only three households reported having savings to meet their housing and other expenses.
The poverty rate has tumbled over the past few years, falling approximately seven percentage points, from 46.3% in 2015 to 39.4% in 2020.19 Moreover, based on the current minimum interprofessional guaranteed salary (SMIG) of CFA60 000 (US$ 108.45), it is challenging for the banking sector to offer mortgage products to the entire active population. The SGBCI’s minimum mortgage amount is CFA5 million (US$9 037.76), at 9.075% payable over a maximum of 20 years. The application fees for such a mortgage represent 1.1% and there is a 0.75% life insurance cost. Despite the minimum loan amount being relatively affordable, the monthly installments might prove too much for a SMIG earner or an informal income earner, given that the income to loan ratio may be above 40%. No private developers can build a house at CFA5 million in the current market, and no commercial bank can give a mortgage to households living off the SMIG, even with two income earners.
Most households derive their revenue from the informal sector. However, those revenues are reportedly below the SMIG. In Côte d’Ivoire, it is rare to find a two-income household. Therefore, when it comes to accessing mortgage finance or self-financing to buy a property, private developers mainly assess applicants or households having one salary or revenue stream.
To mitigate the affordability gap, the government provides some subsidies targeting both the demand and supply sides of the market. For instance, banks are assisted by specialised housing finance institutions such as the Housing Support Fund (FSH) and the Housing Mobilization Account (CDMH). The CDMH aims to provide long-term resources at below-market rates to banking institutions. In return, banks can lend to the market at a capped rate of 5.5%, thereby facilitating access to mortgages. In practice, however, this model has failed to widen access to finance among low to middle income households.
[1] National Institute of Statistics (2015). Household living standards survey.
[2] PwC (2018). Report on population quantification, housing supply and potential demand. Pg. 8.
[3] CAHF (2019). Chronicles of housing investments in Côte d’Ivoire. Centre for Affordable Housing Finance in Africa. https://housingfinanceafrica.org/app/uploads/Rapport-CIV-CIL-final.pdf (Accessed 31 August 2020).
[4] PwC (2018). Report on the quantification of populations, supply and potential demand for housing. Pg. 5.
[5] CAHF (2019). Chronicles of housing investments in Côte d’Ivoire. Centre for Affordable Housing Finance in Africa. https://housingfinanceafrica.org/app/uploads/Rapport-CIV-CIL-final.pdf (Accessed 31 August 2020).
[6] Ibid. Pg. 30.
[7] Statista (2019). Prevailing mortgage interest rates in Africa in 2019. https://www.statista.com/statistics/789843/mortgage-interest-rates-africa-by-country/ (Accessed 19 August 2020).
[8] Agence Ecofin (2014). Côte d’Ivoire: Government relaxes conditions for access to bank credit. https://www.agenceecofin.com/banque/2606-21100-cote-d-ivoire-le-gouvernement-assouplit-les-conditions-d-acces-au-credit-bancaire (Accessed 20 August 2020).
[9] CAHF (2019). Chronicles of housing investments in Côte d’Ivoire. https://housingfinanceafrica.org/app/uploads/Rapport-CIV-CIL-final.pdf (Accessed 31 August 2020). Pg. 27.
[10] Ministry of Planning and Development (2019). Voluntary National Review Report on the Implementation of Sustainable Development Goals in Côte d’Ivoire. https://sustainabledevelopment.un.org/content/documents/23327COTE_dIVOIRE_Draft_Rapport_VNR_CIV.pdf (Accessed 31 August 2020). Pg. 5.
Housing Supply
Various housing options are available in Côte d’Ivoire. In Abidjan, the most popular forms are common yard housing and band housing, reported at 42.7% and 27.6%, respectively. However, according to the World Bank, more than 50% of the urban population lived in slums in 2018.
Since 2011, property development has been dominated by the supply of housing stock through the Presidential Economic and Social Housing Programme (PESHP). The PESHP aimed at delivering 150 000 housing units by 2020, but to date a total of 25 000 have been delivered, representing a 16.6% completion rate over the past 10 years. Most of the PESHP supply stock was delivered, and the rest is being delivered in Abidjan’s outskirts in Songon-Kassemblé, Bingerville, and Grand- Bassam. The programme was initially structured around property ownership, but the Minister of Housing has stated that the PESHP has been restructured to integrate the current financial need of most Ivorian households. As of 2021, applicants can access the properties through a 15-to-20-year rent-to-own scheme, depending on the agreements they have with their banks. In addition to boosting national housing production, the government implemented tax incentives and other measures to support private developers. However, land costliness, delays in land servicing, lack of developers with large-scale capacity, and lack of dedicated funding have hindered the government’s housing supply initiatives.
The government, in agreement with the Société Ivoirienne de Construction et de Gestion Immobilière, a state public developer, earmarked over CFA27 billion (US$48.8 million) in the housing programme called Cité ADO for the construction of 652 units including 450 apartments and 202 villas. In January 2021, the programme reached completion, and applicants received the keys to their houses. During the handover ceremony, the Secretary of State in charge of Social Housing, Koffi N’Guessan Lataille, said that there would be a land servicing of 1 135ha to support a larger social and economic housing programme from the private sector. In 2020, the Moroccan Group Palmeraie Development launched a 15 000-housing programme targeting Ivorian teachers only. To date, no further information about the project has been made available.
Ivorian Real Estate Developer OPES Holding is changing its housing supply strategy to focus on access to the property through rental. The company is launching a new rent-to-own housing programme of 40 000 housing units divided into three phases. Tenants will have a maximum of 25 years to meet their ownership rights. Under this rental programme, units will be developed over 128ha. The land servicing cost will be shared between OPES and the government, at least for the primary building activities. The first phase will be completed by the end of 2022 with the delivery of 2 000 units. The company is scheduling the delivery timeline of the second and third phases, which will be met with 15 000 units and 23 000 units, respectively. OPES is partnering with international companies to provide the necessary collateral to ensure the project’s full completion.
[1] PwC (2018). Report on the quantification of populations, supply, and potential demand for housing. Pg. 12.
[2] World Bank (2014). Population living in slums (% of urban population) -– Cote d’Ivoire. https://data.worldbank.org/indicator/ EN.POP.SLUM.UR.ZS ?locations=CI (Accessed 31 August 2020).
[3] CAHF (2019). Chronicles of housing investments in Côte d’Ivoire. Centre for Affordable Housing Finance in Africa. https://housingfinanceafrica.org/app/uploads/Rapport-CIV-CIL-final.pdf (Accessed 3 August 2020). Pg. 20.
[4] CAHF (2019). Housing Finance in Africa. A review of Africa’s housing finance markets 2019. Centre for Affordable Housing Finance in Africa.
[5] Interview with Sylvain Gbongue TIA, Director of Housing at MCLU, August 20, 2020, Abidjan, Ivory Coast.
Property Markets
Since urban land reform introduced the Certificate of Change of Land Ownership, the national property market data landscape has improved, with access to indicators that show that Abidjan has the most dynamic property market. For example, in 2020, the total number of conventional mortgages in Côte d’Ivoire was 2 030 with 1 518 (approximately 75%) in Abidjan alone. The total number of notarised sales was 5 258, with more than 70% recorded in Abidjan (3 760) that same year.
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. For example, a four bedroom apartment can be rented for between CFA800 000 (US$1 446) and CFA1.2 million (US$2 169) a month in Cocody and Plateau and between CFA100 000 (US$180.75) and CFA200 000 (US$361.51) a month in the neighborhoods of Yopougon, Abobo, and Bingerville. According to the Frank Knight Africa report, rental yields varied from 9% for offices, 8% for retail, 12% for industrial real estate, and 8% for prime rental residential in neighborhoods such as Cocody and Zone 4 in 2020 to 2021.
To improve the issuance of construction permits and the business climate, the government of Côte d’Ivoire established a one-stop-shop for building permits in 2016. Furthermore, in 2021, the government launched the urban land digitization project to create an Integrated Urban Land Management System. The project is managed by the French company IGN-FI, funded by Bpifrance.
In the current housing market, the price of the cheapest newly built house by a private developer is CFA8 500 000 (US$15 364),29 almost half the price recorded in 2019 (CFA15 million) (US$27 113). The house is built on 45m2 and is delivered with two rooms (living room and one bedroom) fully completed and includes free space to construct other rooms.
According to the World Bank’s Doing Business Report the country scores slightly above average for registering property, with a score of 58.6%. According to the Direction of Cadaster, the total number of properties with title deeds is estimated at 321 848.30 In contrast, the quality of the land administration index is relatively low, which demonstrates that the property sector still needs more regulation. These indicators also suggest that the property market might be highly informal, thus exacerbating land insecurity and many other private property issues along the housing value chain in Côte d’Ivoire. According to the World Bank’s 2020 Doing Business Report, Côte d’Ivoire ranks at 112 in registering property. It takes 39 days, five procedures, and 7.1% of the cost of the property to complete the registration process.
PKRO is a multi-disciplinary private company, based in Abidjan, that specialises in services and real estate development. The company is undertaking a data collection and data sharing process to enable better investment and regulatory decision-making in the Ivorian housing value chain.
[1] Darras, R. (2020). Côte d’Ivoire: a real estate boom ‘reserved’ for happy few. 5 February 2020. Jeune Afrique. https://www.jeuneafrique.com/mag/889783/economie/cote-divoire-un-boom-immobilier-reserve-aux-happy-few/ (Accessed 12 August 2020).
[2] Interview with Williams Bella, Managing Director at Property Kro, 21 August 2020, Abidjan, Ivory Coast.
[3] Interviews with Charles Niapoh, Legal Director at SIPIM on 19 August 2020 and Williams BELLA, Managing Director of Property Kro, 21 August 2020, Abidjan, Ivory Coast.
[4] CAHF (2019). Housing Finance in Africa. A review of Africa’s housing finance markets 2019. A review of Africa’s housing finance markets 2019. Centre for Affordable Housing Finance in Africa.
[5] Interview with Williams Bella, Managing Director at Property Kro, August 21,2020, Abidjan, Ivory Coast.
[6] SIPIM. Projects in progress. Ivorian Real Estate Promotion Company. https://www.sipim.com/nos-projets/avant-premi%C3%A8res-projet-en-cours/flamboyant-2 (Accessed 31 August 2020).
[7] Interview with Charles Niapoh, Legal Director at SIPIM, August 19, 2020, Abidjan, Ivory Coast.
[8] Ministry of Economy and Finance (2017). Decree No. 2017-307 of May 17, 2017 setting the maximum unit sale price for these homes.
[9] Anaxago (2020). Investing in real estate in Africa. Winning figures and strategies. White paper. file:///C:/Users/lucie/Downloads/Livre%20Blanc%20Afrique.pdf Pg. 26.
[10] Government of Côte d’Ivoire (2020). Council of Ministers of 15 April 2020. http://www.gouv.ci/_conseil-ministre-details.php?recordID=395 (Accessed 28 August 2020).
Policy and Legislation
Côte d’Ivoire has gradually adopted comprehensive regulation on housing, urban planning, land, and property registration, which led the country to be among the top 20 African countries on the registering property index in the World Bank’s 2020 Doing Business Report. In 2020, a new Construction and Housing Code was introduced, including many new features to improve the sector. Some of the features addressed data collection, with reporting obligation from key stakeholders, the regulation of real estate agencies and real estate agents, the prohibiting of some construction material, and a new definition of co-ownership.
Amid COVID-19, the government implemented measures to support landlords, tenants, and the national housing sector. Among those measures were a moratorium on any rent increase and house eviction except for those following a court order, three-month freezing of rental payment for tenants who lost their jobs, and a rent discount. These measures were applicable for a period of three months, starting from April 2020 to June 2020. However, in 2021 the country is still dealing with COVID-19, having 53 645 confirmed cases, 52 405 recovered cases, and 395 deaths recorded for the first semester.
The government has a particular interest in the residential rental market. This led to state intervention in private parties’ contractual rights. As a result, the government has created standard-term rental contracts and made them available in the market at CFA5 000 (US$9). These contracts rebalance the relationship between landlords and tenants and harmoniously regulate their various interactions.
[1] Act No. 2019-576 of June 26, 2019 establishing the building and planning code.
[2] Gballou, A. (2020). BTP Côte d’Ivoire – The new Construction and Housing Code is in force and repeals all existing texts. 8 January 2020. BATIRICI. https://www.batirici.ci/btp-cote-divoire-le-nouveau-code-de-la-construction-et-de-lhabitat-est-en-vigueur-et-abroge-lensemble-des-textes-existants/ (Accessed 4 August 2020).
Opportunities
The housing backlog is far from being covered, and significant housing development is still needed. The government has reaffirmed its willingness to boost the sector and help private developers in their affordable housing programmes through a series of subsidies, from land servicing to mortgage subsidies.
The coming 2021 census will offer relevant and accurate demographics, local household expenditures, population, gender, housing, and other basic population information. This might improve investors’ understanding of the national market and better inform their housing investment strategy amid and post COVID-19.
Furthermore, the new emphasis on rent-to-own schemes creates momentum toward access to the property in a country where it is no longer possible to deny the hold of the informal sector on the national economy. Thus, a strong opportunity exists for both the private and public sectors to develop better tools first to understand and then satisfy the housing needs of informal households through products adapted to their economic situation.
[1] MCLU (2020). Doing Business at Exchange Center between Minister Bruno Nabagné Kone and the Ministry, to the Prime Minister, Charge of Private Investment Promotion. Ministry of Construction, Housing and Urban Development http://construction.gouv.ci/le-doing-business-au-centre-des-echanges-entre-le-ministre-bruno-nabagne-kone-et-le-ministere-aupres-du-premier-ministre-charge-de-la-promotion-de-linvestissement-prive/ (Accessed 4 August 2020).
[2] MPIP. Ministry for the Promotion of Private Investment. http://www.investissementprive.gouv.ci/fr/au-coeur-du-metier/guichet-unique.html (Accessed 31 August 2020).
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 carrying out the production and dissemination of statistical data for the needs of 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, however, it remains challenging to obtain updated information on housing loans.
[1] Open Data Côte D’Ivoire. Construction and housing. https://data.gouv.ci/donnee/thematiques_details/construction-et-logements633 (Accessed 28 August 2020).
[2] Interview with Sylvain Gbongue TIA, Director of Housing at MCLU, on August 20, 2020, Abidjan, Ivory Coast.
Urban Informality
The total population of Côte d’Ivoire is estimated at 27 175 804 in 2021 with an annual population growth rate of 2.54%. The proportion of the urban population living in slums was reported at 60.1% in 2018 and the urbanisation rate in 2020 is estimated at 3.45%. An estimated 91.5% of the urban population can access potable drinking water, while improved sanitation facilities are available to only 31.7% of the population.
In 2013 the Government of Côte d’Ivoire attempted several initiatives to relocate the informal population located in risk-prone areas to new housing projects on the urban periphery.
[1] Government of Côte d’Ivoire (2020). Coronavirus: President Alassane OUATTARA establishes a state of emergency to stop the spread of the pandemic. 23 March 2020. http://www.gouv.ci/_actualite-article.php?recordID=10978&d=2 (Accessed 28 August 2020).
[2] RFI (2020). Coronavirus: Côte d’Ivoire lifts the isolation of Greater Abidjan. 15 July 2020. https://www.rfi.fr/fr/afrique/20200715-les-transporteurs-ivoiriens-ravis-la-fin-lisolement-grand-abidjan (Accessed 28 August 2020).
[3] Abidjan.net (2020). Social housing: Property developers are active to speed up the work. https://news.abidjan.net/h/677176.html (Accessed 20 August 2020).
[4] BCEAO (2020). Notice 005-04-2020 on the deferral of receivables of companies affected by the COVID-19 pandemic. Central Bank of West Africa States.
[5] Government of Côte d’Ivoire (2020). Council of Ministers of 15 April 2020. http://www.gouv.ci/_conseil-ministre-details.php?recordID=395 (Accessed 28 August 2020).
[6] Government of Côte d’Ivoire (2020). Coronavirus: The Ministry of Housing announces measures to mitigate the impact of the health crisis on the purchasing power of households. 9 April 2020. http://www.gouv.ci/_actualite-article.php?recordID=11021&d=1 (Accessed 28 August 2020).
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
