Housing Finance in Congo, Democratic Republic of the
Overview
This profile is also available in French here.
To download a pdf version of the full 2023 Democratic Republic of Congo country profile, click here.
Women make up 52% of the 95 784 841 people in the DRC. The urban growth rate is 3.3%, and the population density is 40.84 people per square kilometre. 71% of people live in rural areas, and 3/4 of them earn less than $1.90 per day. The rate of urbanisation has resulted in insufficient housing, increased air pollution, and insufficient infrastructure and services. Investment in affordable housing has lagged behind urban growth. Unplanned development has produced undesirable, ineffective neighbourhoods that are vulnerable to natural disasters.
Mining increased 2020 GDP growth from 1.7% to 5.7%, exceeding Sub-Saharan Africa’s 4.5% rate. Growth and poverty should both improve by 2022. The key interest rate at BCC in April 2022 was 7.5%, and the exchange rate was US$1 = FC1995. As the government and central bank prioritised sustainable lenders, the BCC reduced its main interest rate from 18.5% to 8.5% in 2021 and again to 7.5% in January 2022.
Poverty and climate change are the country’s biggest risks. Families were unable to rebuild and protect their homes following the flooding. These consequences will disproportionately affect the poor and vulnerable, contributing to the spread of poverty. Climate resilience is critical for long-term development, but the government has no climate change strategy.
Every year, the DRC requires 3,945,555, or 263,039, new homes. Kinshasa loses 143 092 homes each year.According to the INS, 69.9% of DRC families own a home (regardless of quality). The majority of Congolese work in small businesses. Congolese people are homeless. The urban unemployment rate is 83%. Only 11.4% of occupations are classified as “formal.” DRC’s Gini is 42.1%. In Kinshasa, a one-bedroom apartment costs FC5 486 $250 per month. Three-bedroom apartments in downtown cost $4,499 and $1,749 outside. Apartments in the city centre cost $7,335/m2. Congolese people cannot afford FC1 529 506.65 per square metre (US$766.67).
The DRC’s financial industry had total assets of US$5.3 billion (11% of GDP) in November 2018, with a private credit-to-GDP ratio of 4.9%. However, at 6%, financial inclusion is among the lowest in the world, far below the Sub-Saharan Africa average of 25%. Lower profitability, rising NPLs, and low provisioning (37%) could reduce capital to less than 8% risk-weighted assets. Mortgages grew from 549 316 to 569 240 in 2021.
There is potential, but it depends on how well Kinshasa plans its cities, how well housing resources are used, how much urban poverty is reduced, and how well lenders provide lender and mortgage agent services.
Find out more information on the housing finance sector of the Democratic Republic of Congo, 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
- Additional Sources
- Websites
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 yearbookCongo, Democratic Republic of the
Overview
The Democratic Republic of Congo (DRC) has an area of 2 435 410km2 with an estimated population of 95 784 841 of which 52% are women.[1] Population density is 40.84/km2, and the population growth rate is estimated at 3.3%. Seventy one percent of the population live in rural areas, and nearly three in every four people live on less than US$1.90 a day.[2] Population growth has led to considerable problems, including inadequate housing, increased air pollution, and lack of access to basic services and infrastructure. Investments in formal affordable housing have not kept pace with the concentration and growth of the population in urban areas.[3] The country has five economic regions that are urbanising at different rates including Kinshasa (80%), the East (17%), and the South (42%).[4] Unplanned growth has led to the proliferation of uninhabitable and impractical neighbourhoods, suffering from poor services and various environmental and disaster risks.[5]
Mining helped economic growth as measured by real Gross Domestic Product bounce back from its 2020 low of 1.7% to 5.7% in 2021,[6] well above the 4.5 % rate in sub-Saharan Africa.[7] Growth prospects for 2022 are favourable and poverty is expected to decline slightly. Inflation was projected to be around 11% in 2021 and 7.5% in 2022. The central bank, Banque Centrale du Congo (BCC), kept its key interest rate at 7.5% in April 2022,[8] while it set the official exchange rate at US$1 = FC1995. BCC cut its main interest rate from 18.5% to 8.5% in 2021, and then again in January 2022 by another 100 basis points to 7.5%, promising to maintain that rate for the year.[9] Government and the central bank provide finance lenders with preferential terms, conditional on meeting specific sustainability targets.
The key climate change risks for the country reveal a strong link between poverty and climate change. On 6 May 2022 heavy rains and strong winds in the Lubero region in the north of North Kivu province affected a number of families, destroying more than 40 houses, more than 10 schools, and some religious buildings. These families were unable to rebuild and secure their property.[10] The poor and vulnerable will be more exposed to these impacts, with an increased risk that more people fall into poverty. The government recognises the importance of climate resilience for sustainable development but does not have a strategic climate change plan in place.[11]
[1] Bakila, A. (2022).Coalition Social Watch Democratic Republic of Congo (DRC). Achievement Of the Sustainable Development Goals. https://www-socialwatch-org.translate.goog/taxonomy/term (Accessed 13 August 2022).
[2] Bakila, A. (2022).Coalition Social Watch Democratic Republic of Congo (DRC).Achievement Of the Sustainable Development Goals. https://www-socialwatch-org.translate.goog/taxonomy/term (Accessed 13 August 2022).
[3] DRCongo, (2020). Ministry of Plan: Voluntary National Review of the Sustainable Development Goals. https://sustainabledevelopment.un.org/content/documents/26296VNR_2020_DRC_Report_French.pdf
(Accessed 11 August 2022). Pg. 41.
[4] IFC (2022). Creating Markets in the Democratic Republic of Congo for a productive and sustainable exploitation of natural resources. https://www.ifc.org/wps/wcm/connect/71e74c39-a505-4aae-89d1-d3404521824b/CPSD-Democratic-Republic-of-Congo-FR.pdf?MOD=AJPERES&CVID=nZWvRzq (Accessed 10 August 2022) Pg. 94.
[5] IFC (2022). Creating Markets in the Democratic Republic of Congo for a productive and sustainable exploitation of natural resources. https://www.ifc.org/wps/wcm/connect/71e74c39-a505-4aae-89d1-d3404521824b/CPSD-Democratic-Republic-of-Congo-FR.pdf?MOD=AJPERES&CVID=nZWvRzq (Accessed 10 August 2022). Pg. 95.
[6] World Bank (20220. The World Bank in DRC. https://www.worldbank.org/en/country/drc/overview (Accessed 13 September 2022).
[7] Nolin, G, Toure A, and Zerbo, S. (2022). Democratic Republic of the Congo’s Growth Among Highest in Region Amid Significant Challenges. 25 July 2022. https://www.imf.org/en/News/Articles/2022/07/19/cf-drc-growth-among-highest-in-region-amid-significant-challenges (Accessed 24 July 2022).
[8] Felix, B. (2022). Democratic Republic of Congo central bank keeps interest rate at 7.5%. 4 April 2022. Reuters.
https://www.reuters.com/world/africa/democratic-republic-congo-central-bank-keeps-interest-rate-75-2022-04-04/ (Accessed 19 August 2022).
[9] Felix, B. (2022). Democratic Republic of Congo central bank keeps interest rate at 7.5%. 4 April 2022. Reuters.
https://www.reuters.com/world/africa/democratic-republic-congo-central-bank-keeps-interest-rate-75-2022-04-04/ (Accessed 19 August 2022).
[10] Relief web, (2022).Democratic Republic of Congo – Severe weather (media, WMO) (ECHO Daily Flash of 06 May 2022). https://reliefweb.int/report/democratic-republic-congo/democratic-republic-congo-severe-weather-media-wmo-echo-daily-flash.( Accessed 29 August 2022).
[11] World Bank, (2022). Democratic-Republic-of-Country-Partnership-Framework-for-the-Period-FY22-26. Pge.21https://documents1.worldbank.org/curated/en/214221646062568502/pdf/Congo-Democratic-Republic-of-Country-Partnership-Framework-for-the-Period-FY22-26.pdf (Accessed 21 July 2022).
Access to Finance
The financial sector comprises 16 active licensed banks; a public insurance company (Société Nationale d’Assurances —SONAS) ; the National Institute of Social Security (INSS) ; four private insurance companies and two insurance brokers; six specialised institutions; 143 microfinance institutions and cooperatives; 59 money transfer institutions; four electronic money institutions; and 16 foreign exchange offices.[1] There is no stock market, capital market, or debt capital market. Bank funding consists mainly of demand deposits from the private sector, with corporations accounting for 37% and households 54% of total deposits.[2]
The DRC’s banking system has made some progress toward financial inclusion following the policy of “bancarisation” initiated in 2011. Still, at approximately 6%, the financial inclusion rate is well below the average for sub-Saharan Africa of approximately 25%, and is one of the lowest levels in the world.[3] According to World Bank Findex data, bank account penetration in the DRC increased from 19% in 2014 to 26% in 2017.[4] Approximately 12% of DRC adults have a bank account; 24% have a financial service with another formal supplier.[5]
According to the DRC Gender Landscape (2022), 4.4% of women have borrowed for a business compared to 6.6% of men and 20 women out of 31 (95%) do not have land, alone or in common, registered in their name.[6] In principle, the DRC law prohibits discrimination against access to credit based on gender and it also gives men and women equal ownership rights to immovable property.[7] However, the market report (target) of the DRC shows that in urban areas, more men (15 %) had bank accounts than women (8 %) in 2022.[8]
DRC’s overall housing financial sector is underdeveloped. The country has two housing institutions, the National Housing Fund and the Congolese Real Estate Agency, but they are not fully operational.[9] According to Numbeo, in Kinshasa, mortgage interest rates vary from 12% to 25% yearly, for 20 Years at a fixed rate.[10] The cost of borrowing is high at 20.6% in 2017. Business loans are therefore mainly used to finance short-term business needs and export/import activities. Except for microfinance, credit is mainly reserved for larger companies or loans that are collateralised by cash or benefit from offshore guarantees.[11]
The top 10 banks in the DRC accounted for nearly FC9 181.29 billion (US$4.60 billion) in assets as at end of December 2020.[12] Among these banks, only Rawbank offers mortgage products to clients and provides housing loans of up to 10 years. Medium and long term loans are hard to find. The five largest banks hold almost 65% of bank deposits and more than 60% of total bank assets.[13]
Banking operations consist mainly of collecting demand deposits and providing short-term loans. The number of mortgages increased from 549 316 to 569 240[14] in 2021. The DRC’s financial sector is small, with total assets of US$5.3 billion (11% of GDP at end-2018), and a private credit-to-GDP ratio of 4 .9% in November 2018.[15] Non-performing loans reached 13.2% in October 2019 compared to 7% in 2014, and stood at 8.8% of gross loans in August 2021, but may be underreported given the ongoing suspension on loan reclassification.[16] Lower profitability, growing non-performing loans, and the low level of provisions (37%) are likely to reduce the capital below the required 8% maximum risk-weighted assets.[17]
The banking sector in the DRC remains underdeveloped and there is no domestic stock market. Moreover, access to financial services such as credit is confined to a small share of the population due to cumbersome procedures and the high level of collateral required.[18] Banks report that generally the same credit processes, underwriting standards, and bank/product access requirements apply for both men and women.[19] The World Bank expected International Development Association (IDA) financing to boost its active loan portfolio to approximately FC13 965 billion (US$7 billion) at the end of June 2022.[20] The DRC’s financial sector is small, with assets totalling FC10 573.5 billion (US$5.3 billion), approximately 11% of GDP at the end of 2018, and a private credit to GDP ratio of 4.9% in November 2018.
The DRC’s financial sector has a key role to play in making growth more inclusive and less dependent on commodity prices.[21] To this end, the BCC has also deferred the adoption of new minimum capital requirements, encouraged the restructuring of non-performing loans, and promoted the use of e-payments.[22]
As well as maintaining its key interest rate at 7.5% in order to reduce the cost of credit and stimulate private sector growth,[23] the central bank has taken other steps such as allowing financial institutions to suspend penalties on overdue claims during the crisis. Banks have been allowed to be refinanced for 24 months to increase their resources to enable them to provide new credit for among others, imports and food production.[24]
[1] IFC (2022). Creating Markets in the Democratic Republic of Congo for a productive and sustainable exploitation of natural resources. https://www.ifc.org/wps/wcm/connect/71e74c39-a505-4aae-89d1-d3404521824b/CPSD-Democratic-Republic-of-Congo-FR.pdf?MOD=AJPERES&CVID=nZWvRzq (Accessed 10 August 2022). Pg. 53.
[2] IFC (2022). Creating Markets in the Democratic Republic of Congo for a productive and sustainable exploitation of natural resources. https://www.ifc.org/wps/wcm/connect/71e74c39-a505-4aae-89d1-d3404521824b/CPSD-Democratic-Republic-of-Congo-FR.pdf?MOD=AJPERES&CVID=nZWvRzq (Accessed 10 August 2022). Pg. 93.
[3] Bertelsmann Stiftung (2022), Country Report — Congo, DR. Gütersloh: Bertelsmann Stiftung, 2022. https://bti-project.org/en/reports/country-report/COD (Accessed 25 July, 2022). Pg. 18
[4] IFC (2022). Creating Markets in the Democratic Republic Of Congo for a productive and sustainable exploitation of natural resources. https://www.ifc.org/wps/wcm/connect/71e74c39-a505-4aae-89d1-d3404521824b/CPSD-Democratic-Republic-of-Congo-FR.pdf?MOD=AJPERES&CVID=nZWvRzq (Accessed 10 August 2022). Pg.52
[5] Malagasy Government (2018). National Financial Inclusion Strategy of Madagascar NFIS 2018 – 2022.
https://finmark.org.za/system/documents/files/000/000/191/original/Madagascar_FI_Strategy_English_Nov2018_web.pdf?1601970124. (Accessed 05 August 2022). Pg.13.
[6] World Bank (2022). Dem. Republic of the Congo Gender Landscape. https://genderdata.worldbank.org
[7] World Bank (2022). Women, Business and the Law 2022. https://wbl.worldbank.org/content/dam/documents/wbl/2022/snapshots/Congo-dem-rep.pdf
(Accessed 12 August 2022). Pg. 2
[8] Laredaction, (2022). Possession of bank accounts and cards. 13 August 2022. https://zoom-eco.net/a-la-une/rdc-une-legere-baisse-de-2-observee-au-niveau-de-la-possession-de-cartes-bancaires-en-2022-target/(Accessed 29 August 2022).
[9] RTGA, (2022). International Habitat Day: Pius Muabilu Promises the Construction of Decent and Affordable Housing with the assistance of Shelter Africa.https://www.groupelavenirrdc.info/actus.php?idart=1614&idrub=26 (Accessed 17 September 2022).
[10] Numbeo (2022). Property price in Kinshasa, Congo. https://www.numbdeo.com/property-investment/in/Kinshasa
(Accessed 27 July 2022). Pg.1.
[11] IFC (2022). Creating Markets in the Democratic Republic of Congo for a productive and sustainable exploitation of natural resources. https://www.ifc.org/wps/wcm/connect/71e74c39-a505-4aae-89d1-d3404521824b/CPSD-Democratic-Republic-of-Congo-FR.pdf?MOD=AJPERES&CVID=nZWvRzq (Accessed 10 August 2022). Pg.52
[12] EIB (2020).Banking In Africa: Financing transformation amid uncertainty. Https://www.eib.org/attachments/efs/economic_report_banking_africa_2020_en.pdf (Accessed 23 July 2022). Pg. 96.
[13] Privacy Shield framework (2022). Congo, Democratic Republic -7-Financial Sector. https://www.privacyshield.gov/article?id=Congo-Democratic-Republic-Financial-Sector (Accessed 26 July 2022).Pg. 1.
[14] International Monetary Fund,(2021). Use of Financial Services: Number of Loan Accounts at Commercial Banks for Congo [CODFCNODCNUM], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/CODFCNODCNUM (Accessed 10 August 2022)
[15] IFC (2022). Creating Markets in the Democratic Republic of Congo for a productive and sustainable exploitation of natural resources. https://www.ifc.org/wps/wcm/connect/71e74c39-a505-4aae-89d1-d3404521824b/CPSD-Democratic-Republic-of-Congo-FR.pdf?MOD=AJPERES&CVID=nZWvRzq (Accessed 10 August 2022). Pg.52
[16] IMF, (2022). IMF Executive Board Concludes 2022 Article IV Consultation and the Second Review Under the Extended Credit Facility Arrangement for the Democratic Republic of the Congo. https://www.imf.org/en/News/Articles/2022/06/29/pr22240-democratic-republic-of-congo
(Accessed 29 July 2022).Pg.6
[17] IFC (2022). Creating Markets in the Democratic Republic of Congo for a productive and sustainable exploitation of natural resources. https://www.ifc.org/wps/wcm/connect/71e74c39-a505-4aae-89d1-d3404521824b/CPSD-Democratic-Republic-of-Congo-FR.pdf?MOD=AJPERES&CVID=nZWvRzq (Accessed 10 August 2022). Pg. 55.
[18] Bertelsmann Stiftung, BTI (2022), Country Report — Congo, DR. Gütersloh: Bertelsmann Stiftung, 2022. https://www.bti-project.org ( Accessed 25 July, 2022). Pg. 18.
[19] New Faces New Voices (2022). Women’s Financial Inclusion in the Democratic Republic Of Congo Final Report May 2020. https://idl-bnc-idrc.dspacedirect.org/bitstream/handle/10625/59153/59307.pdf
(Accessed 20 August 2022). Pg. 32 .
[20] World Bank, (2022). World bank commends deepening engagement in DRC. https://www.worldbank.org/en/news/press-release/2022/06/07/world-bank-commends-deepening-engagement-in-drc (Accessed 21 August 2022).
[21] EIB (2020).Banking In Africa: Financing transformation amid uncertainty. Https://www.eib.org/attachments/efs/economic_report_banking_africa_2020_en.pdf(Accessed 25 July 2022). Pg. 97.
[22] IMF (2021). Democratic Republic of the Congo request for a three-year arrangement under the extended credit facility.https://www.imf.org/en/Publications/CR/Issues/2021/07/28/Democratic-Republic-of-the-Congo-Request-for-a-Three-Year-Arrangement-Under-the-Extended-462901 (Accessed 23 August 2021). Pg. 46.
[23] Bertelsmann Stiftung, BTI (2022), Country Report — Congo, DR. Gütersloh: Bertelsmann Stiftung, 2022. https://www.bti-project.org. (Accessed 25 July, 2022).Pg. 19.
[24] Bertelsmann Stiftung, BTI (2022), Country Report — Congo, DR. Gütersloh: Bertelsmann Stiftung, 2022. https://www.bti-project.org. (Accessed 25 July, 2022). Pg. 19.
Affordability
DRC has an overall deficit in housing estimated at 3 945 555 or 263 039 housing units to be built a year.[1] The needs of the city of Kinshasa are estimated at 54.4% of the overall deficit, or 143 092 housing units a year. The latest DRC National Institute of statistic (INS) survey report shows seven out of 10 households (69.9%) own their home (regardless of quality).[2]
Most Congolese make their living in micro-enterprises and small informal enterprises, earning little in low-value-added activities.[3] This means the average Congolese has not much chance of being able to afford a formal house. Furthermore, 83% of people in urban settings are regarded as being in formal unemployment.[4] Informal employment accounts for 88.6% of total employment with the balance of 11, 4% being formal.[5] The DRC’s Gini index (where 0% is perfect equality and 100% complete inequality) is 42.1%.[6] The DRC has experienced sustained economic growth allowing the country to invest massively in rebuilding its public infrastructure.[7]
In Kinshasa, monthly rent for a one-bedroom apartment in the city centre is estimated to be FC5 486 250 (US$2 749) while a one-bedroom apartment outside the city centre is FC1 845 375 (US$925).[8] Rental for a three-bedroom apartment in the city centre is approximately FC8 977 500 (US$4 499) while a three-bedroom apartment outside the city centre is FC3 491 250 (US$1 749).[9] The purchase price for an apartment in the city centre is FC14 637 893.55/m2 (US$7 335/m2) while outside the city centre it costs FC1 529 506.65/m2 (US$766.67/m2).[10] Few Congolese can afford these prices.
The shortage of formal jobs mean many concentrate on informal economic activities that are characterised by low wages. Salaries in the DRC Congo range from FC120 000 (US$60) (lowest average) to FC2 120 000 (US$1 062) a month (maximum average salary).[11] This average monthly salary includes housing, transport, and other benefits. Salaries vary greatly between different careers. With a gross national income per capita of US$1 131 in international dollars (PPP) in 2020, DRC is a low-income country.[12]
Household expenditure on basic service provision in DRC in 2020 was 69.1%, compared to the world average in 2020 based on 151 countries at 63.45%.[13] The average monthly net salary is FC831 256.65 (US$416.54). Further, the country’s mortgage interest rates vary from 12.0% to 25.0% yearly, for an average term of 20 years.[14] The level of credit indebtedness represents barely 14% of GDP and limits the risk of debt distress.[15] Housing-related subsidies are lacking. The new government prioritises building basic facilities such as roads, bridges, and water and electricity infrastructure as a foundation for development.
[1] Democratic Republic of Congo Ministry of Planning, (2022). Housing and real estate.https://www-investindrc-cd.translate.goog/fr/Habitat-et-immobilier?_(Accessed 17 August 2022).
[2] INS (2018). National Institute of Statistics. Survey Report. Democratic Republic of Congo, Ministry of Planning. https://www.ins.cd/wp-content/uploads/2021/01/E-QUIBB_RDC_2016.pdf (Accessed 11 August 2022). Pg. 85.
[3] IFC (2022). Creating Markets in the Democratic Republic of Congo for a productive and sustainable exploitation of natural resources. https://www.ifc.org/wps/wcm/connect/71e74c39-a505-4aae-89d1-d3404521824b/CPSD-Democratic-Republic-of-Congo-FR.pdf?MOD=AJPERES&CVID=nZWvRzq. (Accessed August 10 2022). Pg. 12
[4] Anker research network, (2021). Anker Living Income Reference Value for Rural Democratic Republic of Congo. Pg.v5.
[5] Anker research network, (2021). Anker Living Income Reference Value for Rural Democratic Republic of Congo. Pg.v5.
[6] Bertelsmann Stiftung, BTI (2022), Country Report — Congo, DR. Gütersloh: Bertelsmann Stiftung, 2022. https://www.bti-project.org.( Accessed 25 July, 2022).Pg.2
[7] Anker research network, (2021). Anker Living Income Reference Value for Rural Democratic Republic of Congo.Pg.5
[8] Numbeo, (2022). Property Prices in Kinshasa, Congo. https://www.numbeo.com/property-investment/in/Kinshasa( Accessed 11 August 2022)
[9] Numbeo, (2022). Property Prices in Kinshasa, Congo. https://www.numbeo.com/property-investment/in/Kinshasa( Accessed 11 August 2022)
[10] Numbeo, (2022). Property Prices in Kinshasa, Congo. https://www.numbeo.com/property-investment/in/Kinshasa( Accessed 11 August 2022)
[11] Salary Explorer, (2022).Average Salary in Congo Democratic Republic 2022. http://www.salaryexplorer.com/salary-survey.php?loc=50&loctype=1( Accessed 20 August 2022)
[12] Anker research network, (2021). Anker Living Income Reference Value for Rural Democratic Republic of Congo. Pg.3
[13] The global economy, (2022). Democratic Republic of the Congo: Household consumption, percent of GDP https://www.theglobaleconomy.com/Democratic-Republic-of-the-Congo/household_consumption/ (Accessed 21 August 2022).
[14] Numbeo (2022). Property price in Kinshasa, Congo. https://www.numbeo.com/property-investment/in/Kinshasa (Accessed 11 August 2022).
[15] Coface (2022). Congo, the Democratic Republic Of the / Economic Studies. https://www.coface.com/Economic-Studies-and-Country-Risks/Congo-The-Democratic-Republic-Of-The (Accessed 15 August 2022).
Housing Supply
In urban centres according to the latest research report of the National Institute of statistics (INS), almost one out of 10 (7.5%) households have at least one rented house, mostly in urban areas (15.9% against 2.7% in rural areas).[1] Furthermore, 85% of housing in rural areas and 44% in urban areas is owned. In Kinshasa, the capital city, 81%, as opposed to 51% on average in provinces, live in good-quality housing that is with the floor, roof and external walls made with sophisticated materials. Across the country, 23% of households live in good-quality housing.[2] However, approximately half of the population (52%) have access to basic water and 29% to sanitation.[3]
According to Congolese developers and builders, the smallest residential plot sizes in urban areas are 80m2, 100m2, and 150m2.[4] The Ministry of Housing and Habitat aims to provide low income housing, to implement housing policies and programmes, and to develop standards, policies, and technology to improve housing through public private partnerships. As a result, IIB-DG Africa has signed a memorandum of understanding with the DRC government to build 50 000 social housing units that will go on sale when they are completed for as little as FC29 925 000 (approximately US$15 000) to FC49 875 000 (approximately US$25 000).
Most residential construction materials are locally produced. The total cost per square meter for a newly built house including materials is FC1 995 (US$100/m2).[5] Building materials supply chains were mostly not affected by COVID-19, with the exception of imported materials such as polished wood, concrete, and tile, and areas where COVID-19 was highest.
The overall housing deficit is estimated at 240 000 homes to be built a year. The World Bank ranks DRC at 144 out of 165 economies for general “ease of dealing with construction permits” in 2020. It requires 13 procedures and takes 122 days to obtain a construction permit, a process costing approximately 13.8% of the warehouse value.[6] High-value projects are usually awarded to large foreign construction companies through their well-established Congolese subsidiaries. The number of people employed in the industry sector including construction was 9.84% of the total employment in 2019.[7]
[1] INS (2018). National Institute of Statistics. Survey Report. Democratic Republic of Congo, Ministry of Planning. https://www.ins.cd/wp-content/uploads/2021/01/E-QUIBB_RDC_2016.pdf (Accessed 11 August 2022). Pg.85.
[2] INS (2018). National Institute of Statistics. Survey Report. Democratic Republic of Congo, Ministry of Planning. https://www.ins.cd/wp-content/uploads/2021/01/E-QUIBB_RDC_2016.pdf (Accessed 11 August 2022). Pg.67.
[3] Global Water (2022) Democratic Republic of Congo overview.
https://www.globalwaters.org/WhereWeWork/Africa/DRC (Accessed 28 August 2022).
[4] The Minister of Territorial Development, Urban Planning, Housing, Infrastructure, Public Works and Reconstruction DRC (2022) the granting of the building permit. http://extwprlegs1.fao.org/docs/pdf/cng140378.pdf (Accessed 29 July 2022). Pg. 50
[5] Housing Objective (2021). Cost of building materials. https://objectifhabitat.com (Accessed 29 July 2022).
[6] World Bank (2020). Doing Business: Democratic Republic of the Congo. https://www.doingbusiness.org/content/dam/doingBusiness/country/c/congo-dem-rep/ZAR.pdf.(Accessed 10 August 2022). Pg. 4.
[7] World Perspective, (2022). Employment in the industry sector24 August 2022).
Property Markets
The real estate sector in DR Congo is characterised by: a shortage of developers, a lack of institutions specialising in the financing of real estate, and a mismatch between urban development and related services. INS 2021 reports that 36.5% of residential property owners of Kinshasa hold a title deed. The figure for the country is 65.7%, while many owners still have to update their properties.[1]
There is early progress toward digitalisation through the deed registry system. The e-Foncier project will establish land security for both investors and individuals, electronically store all the data collected in a database accessible to all public authorities, resolve land disputes and create jobs.[2] Currently, on property registration the DRC is ranked 159 out of 190 economies and registration can be completed in 38 days through eight steps.[3]
Land and natural resources remain vested in the state or are allocated informally through customary law.[4] However, customary leaders manipulate land allocations for their personal benefit, or for patronage.[5]
Rapid population changes impact on land uses and land rights. The new “e-Foncier project” aims to bring up-to-date transparency on land activities, capture revenue, secure land as well as modernising land services.[6]
Property market incomes are as follows[7]: retail rent can generate a yield of 10% or FC59 850 ($29.99) a square meter in 2022 compared to FC59 480 ($29.81) a month in 2021. The residential property market earned an 8% rental yield of FC19 952 000 ($9 997,96) a month in 2022, compared to FC19 827 000 ($9 935,32) per month in 2021 for a four-bedroom executive house.
DRC has more informal than formal estate agents. Its large cities have real estate agencies that most often operate informally, due to a lack of resources.[8]
[1] INS (2021). Institute National de la statictique/ National Institute of Statistic. https://ins.cd/wp-content/uploads/2022/06/ANNUAIRE-STATISTIQUE-2020.pdf ( Accessed 26 July 2022) Pg.143-144
[2] Agence-ecofin, (2022). DRC: digitalization of the management of the national land cadastre with a view to improving the issuance and securing of title deeds.https://www-agenceecofin-com.translate.goog/gestion-publique/0608-100297-la-rdc-entreprend-la-numerisation-du-cadastre-et-la-securisation-des-titres-foncier.(Accessed 25 August 2022).
[3] World Bank (2020).Doing Business: Democratic Republic of the Congo. https://www.doingbusiness.org/content/dam/doingBusiness/country/c/congo-dem-rep/ZAR.pdf.(Accessed 10 August 2022). Pg.4.
[4] De Satgé , (2021). Democratic Republic of the Congo – Context and Land Governance. https://landportal.org/book/narratives/2022/democratic-republic-congo. (Accessed 29 July 2022)
[5] Claessens, K., Mudinga, E. and Ansoms, A. (2014). Competition over soil and subsoil: Land Grabbing by Local Elites in Eastern DRC (Kalehe, South Kivu).
[6] Agence-ecofin, (2022). DRC: digitalization of the management of the national land cadastre with a view to improving the issuance and securing of title deeds.https://www-agenceecofin-com.translate.goog/gestion-publique/0608-100297-la-rdc-entreprend-la-numerisation-du-cadastre-et-la-securisation-des-titres-foncier.(Accessed 25 August 2022).
[7] Knight Frank (2020). The Africa Report: Real Estate Market Update 2020/21.
https://www.knightfrank.com/research/africa-report-202021-7066.aspx (Accessed 25 August 2022). Pg. 22.
[8] Habitat- Worldmap, (2022). Democratic republic of congo: Land grabbing, Right to housing, Land rights, Unsanitary housing, Social production of housing.https://habitat-worldmap.org/pays/afrique/republique-democratique-du-congo/ (Accessed 26 August 2022).
Policy and Legislation
The DRC shows early signs of a new social contract between the government and citizens. Meanwhile, the DRC has embarked on a land reform process, supported by a range of stakeholders. A draft law on institutions supporting housing subsidies has been drafted. The DRC has also undertaken the “e-Foncier” project for digital transformation of the management of the national land cadastre to improve issuing and securing title deeds.[1] This will greatly aid housing development.
The National Land Policy of the DRC was approved by the Council of Ministers on 15 April 2022.[2] The new policy is expected to lead to substantial improvements in several respects. It will ease recognition of tenure security of customary lands in both urban and rural areas, along with subsequent land transactions. It will enhance the recognition of land rights of marginalised groups, particularly women, who are denied access to property rights to land due to patriarchal norms and customary rights. The law will significantly modernise land tenure, improve transparency and delivery of land tenure services, and decentralise land tenure functions.
The Family Code provides that daughters and sons have the same rights to inherit land (Art. 758-761, 1987).[3] Likewise, the law ensures that surviving spouses, female and male, equally have the right to inheritance. Moreover, the Code prohibits disinheritance and fines those who perpetrate it (Law 016-008, Art. 545). Building safety in the DRC is the responsibility of the Ministry of Infrastructure and Public Works. Building codes supporting green building appear undeveloped.
[1] Agence-ecofin, (2022). DRC: digitalization of the management of the national land cadastre with a view to improving the issuance and securing of title deeds.https://www-agenceecofin-com.translate.goog/gestion-publique/0608-100297-la-rdc-entreprend-la-numerisation-du-cadastre-et-la-securisation-des-titres-foncier. (Accessed 25 August 2022).
[2] GLTN ( 2022). DR Congo adopts national land policy. https://gltn.net/2022/05/04/dr-congo-adopts-national-land-policy/( Accessed 14 August 2022)
[3] OECD (2019), Gender, Institutions and Development Database. Democratic Republic of the Congo.https://www.genderindex.org/wp-content/uploads/files/datasheets/2019/CD.pdf (Accessed 14 August 2022).Pg.3
Opportunities
The opportunities for new housing presented by the overall deficits are estimated at 3 945 555 or 263 039 housing units to be built a year.[1] The city of Kinshasa is estimated to account for 54.4% of the overall deficit, or 143 092 housing units a year.
Urgently needed are:
- Improved urban planning, especially in Kinshasa;
- Mobilising resources for housing;
- Emergency action to reduce areas of urban poverty;
- Rational use of land in land management practices;
- Developing national municipal policies and local building capacity;
- Ensuring lenders provide services of both lender and mortgage agent;
- Supporting incremental housing development by good planning and design; and
- Housing micro-finance initiatives to help households build their homes step by step.
Key trends to be observed in the year ahead are: urbanisation growth due to pull and push factors, and urban population increases. The opportunity (and the challenge) is to increase the level and productivity of private investment in key urban sectors such as housing construction. Therefore, investors could plan residential development around the six industrial development zones of the DRC.
[1] Democratic Republic of Congo Ministry of Planning, (2022). Housing and real estate.
https://www-investindrc-cd.translate.goog/fr/Habitat-et-immobilier?_(Accessed 17 August 2022)
Availability of Data on Housing Finance
- Central bank of Congo
- Economic and financial statistics
- Data are not regularly available annually also online
- National institute of statistics
- Periodic data, Census
- Data are not regularly available annually and online
- Institute of Economic and Social Research (IESR)
- Price statistics
- Data are not regularly available weekly, monthly, annually and online
- Minister of finance
- Periodic Financial Soundness Indicators
- Data are not regularly available weekly, monthly, annually and online
- Data gaps for housing finance in the country include annual availability, line availability; data can be collected but not made public
- The National Institute of Statistics disaggregates data by gender, but not at all
No sources of data to understand climate issues were not identified in relation to affordable housing
Green Applications for Affordable Housing
In the DRC, there are no green building standards for the country or a regulator to enforce green standards in the building industry.
Based on the information available, neither affordable housing projects with EDGE (green) certification nor banks offering green mortgages have been identified. No names and website addresses in the DRC of green housing financial service providers/green microfinance providers, nor green enterprises in the MSME sector, could be found.
Hydropower is the main source of electricity. Approximately 19% of Congolese have access to electricity, just over half have access to clean water, and improved sanitation systems are available to only 29% of the population. However, approximately 95% of the country’s energy demand is currently met by biomass sources. Solar energy is another off-grid alternative service.
Additional Sources
The Heritage Foundation https://www.heritage.org/
UN Habitat https://www.unhabitat.org/
World Population Review https://www.worldpopulationreview.com/
Investors Clubs https://investorsclubs.org/
Websites
National Institute of Statistics https://www.ins.cd/
Central bank of Congo http://www.bcc.cd/
