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 2021 Democratic Republic of Congo country profile, click here.
The Democratic Republic of the Congo (DRC) had an estimated population of 89 561 404 in 2020, covering an area of 2 344 858km. The urban population growth rate is 3.14%, with a population density of 41 inhabitants per km2. The country’s 12 largest cities have been growing by approximately 4.7% a year with the total urbanised population estimated at 42% in 2015. The average urban growth rate between 2008 and 2018 was 4.1%, equal to adding 1 million city dwellers every year, a rate that if it continues would mean the urban population will double in only 15 years. These 12 cities face various economic, social, and political challenges including high levels of poverty.
The World Bank estimated that 73% of the Congolese population, equalling 60 million people, in 2018, lived on less than $1.90 (FC3 767) a day. This means that more than half of the population cannot access adequate housing or own a decent house resulting in an increasing number of informal settlements which are currently home to approximately 65% of the DRC’s urban inhabitants. The lack of affordable housing finance, high costs of urban land characterised by weak tenure security, rising construction costs, and the prevalence of slums, challenge current efforts by the government to alleviate the housing crisis.
The DRC has the world’s largest deposits of copper, cobalt, lithium, nickel, and uranium. These metals are used in everything from electric cars to solar panels and power grids and generate significant revenue for the country. Gross Domestic Product (GDP) was valued at FC98 876 billion (US$49.87 billion) in 2020 with the GDP per capita estimated to be FC1 104 353 (US$557). In the context of a fragile job market, the country’s unemployment rate has increased from 4.13% in 2019 to 4.55%, in 2020. The DRC’s public debt is low relative to other African countries at 21.2% of GDP, or FC20 173 billion (U $10.175 billion) but two-thirds is external, mainly from multilateral donors.
Find out more information on the housing finance sector of the Democratic Republic of Congo, including key stakeholders, important policies and housing affordability:
- Macroeconomic Overview
- Access to Finance
- Affordability
- Housing Supply
- Property Markets
- Policy and Regulation
- Opportunities
- Availability of Data on Housing Finance
- Urban Informality
- Websites
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 yearbookCongo, Democratic Republic of the
Macroeconomic Overview
The Democratic Republic of Congo (DRC) is a classic example of the paradox of plenty, being simultaneously rich in natural resources while the population remains extremely poor.[1] The DRC is Africa’s largest copper producer and the world’s largest cobalt producer, but its political instability and high inflation rate discourage international investors.[2] Consequently, there is a high expectation from the new coalition government, led by Felix Antoine Tshisekedi Tshilombo, who assumed office in January 2019, to address this political and economic uncertainty.
The DRC covers an area of 2 344 858km² and includes a population of 97 879 million.[3] Twelve of the DRC’s major cities have been growing by approximately 4.7 percent a year.[4] Accompanying this growing population, the urbanisation rate has climbed over 30 percent in the past 50 years, reaching 40 percent in 2015.[5] This urban dynamic has led to a related surge in building and housing supply.[6] Nonetheless, the DRC has a housing deficit of about four million units.[7]
The DRC’s national development plan (Plan National Stratégique de Développement) covers five years (2017 to 2021). This plan focuses on developing the DRC into an emerging market economy by 2030.[8] As part of this process, the government of the DRC has articulated its will to reorganise and improve the housing sector.[9] However, the DRC struggles with many socioeconomic problems such as ongoing conflicts, mismanagement of resources, food insecurity and, most recently, the COVID-19 pandemic. As detailed in President Tshilombo’s speech on the 60th independence anniversary, COVID-19 has shown how the DRC depends on international donors to buttress its economic health. The International Monetary Fund (IMF) has approved a FC689 123 million (US$363.27 million) loan under its Rapid Credit Facility to assist the DRC’s economy in the face of a looming balance of payments crisis, made worse by falling mineral prices.[10] An additional FC89 159 million (US$47 million) has been sourced from the World Bank to support the DRC’s response to the pandemic.[11] Before the pandemic there was a slight increase in housing supply and private housing development in the country.[12]
The DRC’s real gross domestic product (GDP) is projected to drop by about six percentage points from 2019 to 2020, lowering from 4.4 to -2.2 percent.[13] Accompanying this economic contraction, inflation derived from changes in the consumer price index (CPI) is set to average 11 percent in 2020, up from 4.8 percent in 2019.[14] There has also been a depreciation in the Congolese franc over the past year.
[1] World Bank (2017). Democratic Republic Of Congo. Urban Development Project – Additional Financing. 13 April 2017. http://documents.worldbank.org/curated/en/373521560164904313/pdf/Congo-Democratic-Republic-of-AFRICA-P129713-DRC-Urban-Development-Project-FY13-Procurement-Plan.pdf Pg. 2.
[2] The Heritage Foundation (2020). 2020 Index of Economic Freedom. Democratic Republic of the Congo. https://www.heritage.org/index/pdf/2020/countries/democraticrepubliccongo.pdf (Accessed 27 July 2020). Pg. 182.
[3] IMF (2019). Democratic Republic of the Congo – at a Glance. https://www.imf.org/en/Countries/COD
(Accessed 20 July 2020). Pg. 1.
[4] Investors Clubs (2020). Housing sector in DR Congo. https://investorsclubs.org/housing-sector-in-dr-congo/ (Accessed 29 July 2020).
[5] Ibid
[6] Ibid
[7] Africa Property News (2020). DRC not an easy environment, but real estate opportunities abound. http://www.africapropertynews.com/central-africa/3370-drc-not-an-easy-environment-but-real-estate-opportunities-abound.html (Accessed 02 August 2020). Pg. 1.
[8] KPMG (2017). DRC Economic Snapshot H2, 2017. https://assets.kpmg/content/dam/kpmg/za/pdf/2017/12/DRC-2017H2.pdf (Accessed 10 September 2020) Pg. 2.
[9] Investors Clubs. Housing Sector in DR Congo. https://investorsclubs.org/housing-sector-in-dr-congo/ (Accessed 29 July 2020).
[10] IMF (2020). IMF Approves US$363.27 Million Disbursement to the Democratic Republic of Congo to Address the COVID-19 Pandemic. 22 April 2020. https://www.imf.org/en/News/Articles/2020/04/22/pr20182-democratic-republic-of-congo-imf-approves-disbursement-to-address-covid-19 Pg. 1.
[11] World Bank (2020). The World Bank Group Provides $47 Million to Support the Democratic Republic of Congo’s Response to the Coronavirus Pandemic. https://www.worldbank.org/en/news/press-release/2020/04/02/the-world-bank-group-provides-47-million-to-support-the-democratic-republic-of-congos-response-to-the-coronavirus-pandemic (Accessed 26 July 2020).
[12] Investors Clubs. Housing Sector in DR Congo. https://investorsclubs.org/housing-sector-in-dr-congo/ (Accessed 29 July 2020).
[13] IMF (2020). IMF Approves US$363.27 Million Disbursement to the Democratic Republic of Congo to Address the COVID-19 Pandemic. 22 April 2020. https://www.imf.org/en/News/Articles/2020/04/22/pr20182-democratic-republic-of-congo-imf-approves-disbursement-to-address-covid-19 (Accessed 28 July 2020). Pg. 5.
[14] Ibid. Pg. 6.
Access to Finance
The DRC’s financial sector includes 19 licensed banks, one development bank, Société Financière de Development (SOFIDE), a savings fund, Caisse Générale d’épargne du Congo or CADECO, a national insurance company, Societe National d’Assurances (SONAS), and the National Social Security Institute (INSS). The host of smaller institutions facilitating access to finance include 120 microfinance institutions and cooperatives; 78 money transfer institutions (dispersed, primarily, through Kinshasa, Kongo Central, North and South Kivu, and the former Katanga provinces); three electronic money institutions, and; more than 16 foreign exchange offices.
The Banking Association of Congo (ACB) reports that banks increasingly offer savings accounts that pay approximately 3% interest. Although 65% of the population saves, only 4.7% do so through a bank.20 This shows that citizens have poor access to finance and to financial institutions that could provide housing loans. The World Bank ranked the DRC at 152 out of 190 countries for ease of accessing credit in last year’s annual ratings, and, for ease of doing Business, placed it at 183 out of 190 economies. DRC‘s real property (buildings and land) is protected and the law relating to real property rights enumerates provisions for mortgages and liens. A credit bureau needs to be set up, and bankruptcy laws reinforced, to protect the rights of borrowers and lenders to bolster lending.
According to Numbeo, in Kinshasa, the average mortgage as a percentage of income was 506.23% in July 2021, compared to 476.89% in July 2020. This is an increase of 29.34 percentage points and occurred during the pandemic. Their analysis shows that mortgage interest rates vary from 17% to 25% yearly, for 20 years at a fixed rate. Similarly, the interest rates for housing loans are high at 24%, but not nearly as high as the rates for microfinance loans, which range from 30% to 60% a year. The Central Bank of Congo (BCC) reported that the Non- Performing Loans (NPL) ratio as at end of June 2019 was 16%, only slightly lower than the 16.8% recorded in 2018, while the regulatory standard stands at 5%. Further, provisions set aside to cover non-performing loans at the end of June 2019 were 34%, compared with 40% in late December 2018,28 a decrease of 6 percentage points.
The top 10 banks, Equity Commercial Bank of Congo (Equity BCDC); International Bank for Africa in Congo; FBN Bank DRC SA; Citibank; Standard Bank Congo; Rawbank; Ecobank RDC; Trust Merchant Bank; Afriland First Bank and Access Bank DRC account for nearly FC180 billion (US$4.63 billion) in assets as at end of December 2020. Among these banks, only Rawbank offers mortgage products to clients. The five largest banks hold almost 65% of bank deposits and more than 60% of total bank assets.
The DRC’s financial sector has a key role to play in making growth more inclusive and less dependent on commodity prices. The Central Bank of Congo provides finance and refinancing for banks, and loans and advances to credit institutions. The BCC has also deferred the adoption of new minimum capital requirements, encouraged the restructuring of NPL, and promoted the use of e-payments.
Moreover, the Central bank of Congo aims to use the banking system’s strategic plan to reach more than 20 million bank accounts by 2030. In pursuit of this, the DRC needs financial infrastructure, modernised payment systems, and an increase in the availability of medium-term to long-term financing to Micro, Small, and Medium Enterprises (MSMEs).
[1] Privacy Shield Framework, (2020). Congo, Democratic Republic -7-Financial Sector. https://www.privacyshield.gov/article?id=Congo-Democratic-Republic-Financial-Sector (Accessed 10 September 2020). Pg. 1.
[2] Ibid. Pg. 1.
[3] Ibid. Pg. 1.
[4] World Bank (2020). Doing Business 2020. Economy Profile, Congo, Democratic Republic.
https://www.doingbusiness.org/content/dam/doingBusiness/country/c/congo-dem-rep/ZAR.pdf (Accessed
04 August 2020). Pg. 4.
[5] World Bank (2020). Doing Business 2020. Economy Profile Congo, Democratic Republic.
https://www.doingbusiness.org/content/dam/doingBusiness/country/c/congo-dem-rep/ZAR.pdf (Accessed
04 August 2020). Pg. 4.
[6] World Food Programme (2020). Macro-economic analysis of RBJ countries. Regional Bureau for Southern Africa and Indian Ocean Islands. Updated 12.05.2020. https://docs.wfp.org/api/documents/WFP-0000115611/download/?iframe (Accessed 10 September 2020). Pg. 8.
[7] Numbeo. Property price in Kinshasa, Congo. https://www.numbeo.com/property-investment/in/Kinshasa (Accessed 31 July 2020).
[8] Ibid.
[9] ibid.
[10] ÉLAN RDR (2019). Weak links in the DRC housing value chain.
https://www.elanrdc.com/latest-news/2019/2/8/weak-links-in-the-drc-housing-value-chain (Accessed 13 September 2020. Pg. 1.
[11] EIB (2020). Banking in Africa: Financing transformation amid uncertainty. European Investment Bank. Https://www.eib.org/attachments/efs/economic_report_banking_africa_2020_en.pdf (Accessed 25 August 2020). Pg. 96.
[12] Ibid. Pg. 95.
[13] Ibid. Pg. 95.
[14] Ibid. Pg. 97.
[15] World Bank. DRC: Financial Infrastructure and Markets. https://projects.worldbank.org/en/projects-operations/project-detail/P145554?lang=ru (Accessed 20 August 2020). Pg. 1.
[16] EIB (2020). Banking in Africa: Financing transformation amid uncertainty. European Investment Bank. Https://www.eib.org/attachments/efs/economic_report_banking_africa_2020_en.pdf (Accessed 25 August 2020). Pg. 96.
[17] ÉLAN RDC (2019). Weak links in the DRC housing value chain.
https://www.elanrdc.com/latest-news/2019/2/8/weak-links-in-the-drc-housing-value-chain (Accessed 14 September 2020). Pg. 1.
Affordability
The DRC’s poverty rate as measured by US$1.90 a day clearly stands in the way of access to adequate housing or ownership of a decent house.
In addition, the lending interest rate on credit from banks to prime borrowers is 26.76%. According to the Élan RDC firm, the cheapest affordable home built by a developer in the DRC cost FC79 307 200 (US$40 000). The average monthly net salary is FC1 718 607 (US$866.81). Further, the country’s mortgage Interest rates varied from 17.0% to 25.0% yearly, for an average term of 20 years.
COVID–19 has caused many businesses and households to face insolvency and liquidity constraints that hamper their ability to pay back maturing bank loans. As a result, it was reported that 40% of households encountered problems with paying their rent. In trying to make housing more affordable, the government has been exploring various options to ensure that more houses are built in the next five years. As part of the process, the government plans to establish a Habitat Bank and a National Fund for housing.
[1] Kuma, J.K. (2020). Poverty and unemployment in Democratic Republic of Congo: inventory of fixtures, analyses and prospects. HAL. https://hal.archives-ouvertes.fr/hal-02909695/document
(Accessed 30 September 2020). Pg. 8.
[2] World Poverty Clock 2018. Democratic Republic of the Congo’s role in Africa’s Poverty narrative.
https://worldpoverty.io/blog/index.php?r=18 (Accessed 15 September 2020). Pg. 1.
[3] World Bank. Data. Lending interest rate (%). Democratic Republic of Congo. https://data.worldbank.org/indicator/FR.INR.LEND (Accessed 15 September 2020).
[4] ÉLAN RDR (2019). Weak links in the DRC housing value chain.
https://www.elanrdc.com/latest-news/2019/2/8/weak-links-in-the-drc-housing-value-chain. (Accessed 13 September 2020. Pg. 1.
[5] IMF (2019). Democratic Republic of the Congo Selected Issues. September 2019. https://www.elibrary.imf.org/doc/IMF002/28371-9781513512853/28371-9781513512853/Other_formats/Source_PDF/28371-9781513512891.pdf (Accessed 23 August 2020). Pg. 17.
[6] KPMG (2020). DRC Economic Snapshot H2, 2017.
https://home.kpmg/content/dam/kpmg/za/pdf/2017/12/DRC-2017H2.pdf (Accessed 27 July 2020). Pg. 1.
[7] ÉLAN RDR (2019). Weak links in the DRC housing value chain.
https://www.elanrdc.com/latest-news/2019/2/8/weak-links-in-the-drc-housing-value-chain (Accessed 14 September 2020). Pg. 1.
[8] Ibid. Pg. 1.
[9] Numbeo. Property price in Kinshasa, Congo. https://www.numbeo.com/property-investment/in/Kinshasa (Accessed 31 July 2020). Pg. 1.
[10] KPMG (2020). Democratic Republic of Congo. Government and institution measures in response to COVID-19. https://home.kpmg/xx/en/home/insights/2020/04/drc-government-and-institution-measures-in-response-to-covid.html (Accessed 29 July 2020)
Housing Supply
The current supply of housing and basic services does not match the rising demand for affordable housing. This has led to a surge in construction and housing supply in the country aimed at reducing a housing backlog of almost four million units. In response, the government has formulated a national land and national land-use planning policy to provide spatial plans for the country. To this end, President Tshisekedi announced a plan to establish a new administrative capital city to counter the problem of rapid population growth in Kinshasa. The project consists of building a 300km2 smart city and building 6 000 housing units in the first phase and a further 250 000 housing units within the next five years.
Similarly, due to the rapid urbanisation and tenure security challenges, the Ministry of Planning initiated and co-financed a Participatory Slum Upgrading Programme (PSUP) with FC495 670 000 (US$250 000). The government has also partnered with the local communities of Kinshasa to implement the PSUP initiative, which has been allocated FC594 804 000 (US$300 000) a year. These plans aim to integrate the slums into the citywide urban planning strategy. Further, several initiatives are in the pipeline on the provincial level. Despite these elaborate plans, over 65% of the population lives in inadequate housing as people resort to self-built housing.
Good quality dwellings in the DRC are those with floors, roofs, and exterior walls constructed from durable materials. In Kinshasa, 81% of households live in these types of dwellings. In provinces, only 51% of households live in good quality housing. In the country, 23% of households live in good quality housing. Moreover, rapid urbanisation and lack of connectivity makes moving to the big cities very difficult. The lack of reliable means of transport limits employment opportunities for workers and prevents companies from taking advantage of the economies of scale. The DRC still lacks a strategic framework document that strengthens synergies between national and local levels of government for the reduction of disaster risk management.
[1] Africa Property News (2020). DRC not an easy environment, but Real Estate opportunities abound. http://www.africapropertynews.com/central-africa/3370-drc-not-an-easy-environment-but-real-estate-opportunities-abound.html. (Accessed 2 August 2020). Pg. 1.
[2] Karmod (2020). Kinshasa Housing Complex Project – Democratic Republic of the Congo. https://karmod.com/en/project/congo-prefabricated-houses (Accessed 30 July 2020).
[3] Investors Clubs (2020). Housing sector in DR Congo. https://investorsclubs.org/housing-sector-in-dr-congo/ (Accessed 29 July 2020).
[4] Africa Property News (2020). DRC not an easy environment, but Real Estate opportunities abound. http://www.africapropertynews.com/central-africa/3370-drc-not-an-easy-environment-but-real-estate-opportunities-abound.html (Accessed 02 August 2020). Pg. 1.
[5] Ibid. Pg. 1.
[6] Ibid. Pg. 1.
[7] Ibid. Pg. 1.
Property Markets
A shortage of public and private sector developers for infrastructure development hampers the real estate sector. “Property stands out, in response to DRC government efforts to address the acute housing deficit, particularly among the urban populations in the cities of Kinshasa and Lubumbashi.” Despite a surge in construction and housing supply, the price of units at more than FC49 567 000 (US$25 000) is well beyond the reach of employed low to middle-income households in Kinshasa. While demand for affordable housing is evidently high, the few past and ongoing housing projects are skewed towards the needs of middle-income and wealthy individuals.
The property market yields are as follows: 10% can be realised in the DRC’s retail market, with rents of FC59 480/m2 (US$30)/m2 a month; industrial property yields 15% at FC19 830 (US$10)/m2 a month; offices yield 10% at FC59 480/m2, (US$30)/m2 a month, and; the residential market yields 8%, with rent of FC19 827 000 (US$10 000) a month for a four-bedroom executive house. In Kinshasa, a hectare in well-serviced residential areas costs FC198 268 000 (US$100 000), which is an indication of the higher values of serviced land. A one-bedroom apartment outside of Kinshasa’s center costs between FC694 000 (US$350) and FC4 957 000(US$2 500). Few Congolese can afford these prices.
The last DRC National Institute of statistic (INS) survey report shows that in the country, owner-occupied housing accounted for 69%, rented housing 18.6% and 9.7% are housed by a third party (parent, friend, or employer), with 1.9% underhoused. Fewer Congolese are owners in urban areas 44% compared to rural areas 85%.
In the World Bank Doing Business index the DRC ranks on the “ease of dealing with construction permits” 144 out of 165 economies in 2020, an improved ranking and a reflection of positive developments in the housing and construction sectors. Currently, it requires 13 procedures and takes 122 days to obtain a construction permit, a process costing approximately 13.8% of the warehouse value. On property registration, the DRC is ranked 159 out of 190 economies, an improvement from previous year. Property registration can be completed in 38 days through eight steps. Pending innovations may improve on these times. For instance, the potential to digitise land tenure and title systems is promising, as seen through a recent initiative by a local firm, Congo Check.
[1] HG Legal Resources (2020). Investing in Real Estate in the DR Congo: Ownership, Rights and Usage of the
Land. https://www.hg.org/legal-articles/investing-in-real-estate-in-the-dr-congo-ownership-rights-and-usage-of-the-land-37001 (Accessed 02 August 2020). Pg. 1.
[2] Knight Frank (2020). The Africa Report: Real Estate Market Update 2020/21. https://www.knightfrank.com/research/africa-report-202021-7066.aspx (Accessed 22 August 2020). Pg. 22.
[3] Africa Property News (2020). Housing supply limited in Democratic Republic of Congo.
http://www.africapropertynews.com/central-africa/3076-housing-supply-in-democratic-republic-of-congo.html (Accessed 02 August 2020). Pg. 1.
[4] Numbeo. Property price in Kinshasa, Congo. https://www.numbeo.com/property-investment/in/Kinshasa (Accessed 31 July 2020). Pg.
[5] RMB (2020). Where to Invest in Africa 2020. https://www.rmb.co.za/landing/where-to-invest-in-africa . (Accessed 22 July 2020). Pg. 214.
[6] World Bank Group (2020). COVID-19 Outbreak: Housing Finance Implications and Response. http://pubdocs.worldbank.org/en/368571586473125247/COVID-19-Outbreak-Housing-Finance.pdf (Accessed 7 September 2020). Pg. 2.
[7] World Bank Group (2020). COVID-19 Outbreak: Housing Finance Implications and Response. http://pubdocs.worldbank.org/en/368571586473125247/COVID-19-Outbreak-Housing-Finance.pdf (Accessed 29 July 2020). Pg. 2.
[8] World Bank (2020). Doing Business 2020. Economy Profile Congo, Democratic Republic.
https://www.doingbusiness.org/content/dam/doingBusiness/country/c/congo-dem-rep/ZAR.pdf (Accessed
02 August 2020). Pg. 1.
[9] Ibid. Pg. 4
[10] Ibid. Pg. 4.
[11] World Bank Group (2019). Doing Business 2020. Economy Profile Congo, Democratic Republic.
https://www.doingbusiness.org/content/dam/doingBusiness/country/c/congo-dem-rep/ZAR.pdf (Accessed
20 August 2020). Pg. 1.
[12] World Bank (2020). Doing Business 2020. Economy Profile Congo, Democratic Republic.
https://www.doingbusiness.org/content/dam/doingBusiness/country/c/congo-dem-rep/ZAR.pdf (Accessed
02 August 2020). Pg. 4.
[13] Ibid. Pg. 4.
[14] Investors Clubs (2020). Housing sector in DR Congo. https://investorsclubs.org/housing-sector-in-dr-congo/ (Accessed 29 July 2020).
Policy and Regulation
The newly established DRC “Sacred Union” government is determined to improve the housing sector. The ownership of land, and the rights of use associated with land, are regulated by the 1973 General Property Law (Law No. 73-021). This law sets standards to regulate the purchase, sale, and leasing of land. Also, the circular Note n°005/CAB/MIN/AFF FUNC/2013 of 12 June 2013 sets the procedure and the transfer period of land and property rights. In terms of building construction, Ministerial Order No. Cab/MINA/TUHITPR/007/2013 of 26 June 2013 regulates the granting of building permits. In addition, Land Law No. 15/025 of 31 December 2015 on leasing and non-professional rents regulate the real estate sector and circumscribes the role of real estate agencies.
The DRC’s regulatory framework facilitates public private partnerships to increase the supply of housing units. Government intervention aims to create an enabling environment for the private sector provision of housing. In response to COVID-19, the BCC has cut policy interest rates, which “will reduce monthly payments for those on variable rates, improving affordability and helping reduce delinquencies, and increasing demand for refinancing of loans.”
[1] Ibid.
[2] Ambardrcusa (2020). Invest in DRC. https://www.ambardcusa.org/invest-in-the-drc/ (Accessed 2 August 2020). Pg. 1.
[3] World Bank Group (2020). COVID-19 Outbreak: Housing Finance Implications and Response. http://pubdocs.worldbank.org/en/368571586473125247/COVID-19-Outbreak-Housing-Finance.pdf (Accessed 29 July 2020) Pg. 4.
[4] USAID. Land Tenure and Property Rights Portal. https://www.land-links.org/country-profile/democratic-republic-congo/ (Accessed 22 August 2020). Pg. 4.
[5] Ministere du Plan République Démocratique du Congo (2020). Habitat et immobilier. https://investindrc.cd/fr/Habitat-et-immobilier (Accessed 02 August 2020). Pg. 1.
[6] Congo Invest Consulting (2020). Housing. http://www.congo-invest.com/v2/index.php/housing/ (Accessed
2 August 2020). Pg. 1.
[7] HG Legal Resources (2020). Investing in Real Estate in the DR Congo: Ownership, Rights and Usage of the
Land. https://www.hg.org/legal-articles/investing-in-real-estate-in-the-dr-congo-ownership-rights-and-usage-ofthe-land-37001 (Accessed 02 August 2020). Pg. 1.
[8] Mondaq (2020). Congo: Democratic Republic of the Congo – Adoption of a Legislative Framework Applicable to Public-Private Partnerships. 13 December 2018. https://www.mondaq.com/human-rights/764064/democratic-republic-of-the-congo–adoption-of-a-legislative-framework-applicable-to-public-private-partnerships (Accessed 23 August 2020). Pg. 1.
[9] Karmod (2020). Kinshasa Housing Complex Project – Democratic Republic of the Congo. https://karmod.com/en/project/congo-prefabricated-houses (Accessed 22 August 2020). Pg. 1.
Opportunities
The DRC’s population will reach nearly 145 million inhabitants in 2050 (60% urban residents and 40% rural compared to 42% and 58% in 2014). Supplying housing for this population presents a huge opportunity for investors. “The housing sector can play a strong role in recovery as a channel for stimulus and employment creation, where large-scale investments are needed to meet SDG11 which aims to create safe, adequate and affordable housing for all.” For instance, the metropolitan capital city of Kinshasa with its increasing population offers a hyper-contrasting real estate landscape, commensurate with the huge income gaps between the majority of the population and a handful of well-off citizens. At the same time, it accounts for 54% of housing demand, requiring construction of approximately 143 000 units per year. This gap extends to all provinces. Housing needs are enormous, which offers great opportunities in all segments of the real estate industry and housing finance.
[1] Investors Clubs (2020). Housing sector in DR Congo. https://investorsclubs.org/housing-sector-in-dr-congo/ (Accessed 29 July 2020).
[2] UN-Habitat. Sub-Saharan Africa Atlas Regional Office for Africa. https://unhabitat.org/un-habitat-sub-saharan-africa-atlas (Accessed 22 August 2020).
[3] Investors Clubs (2020). Housing sector in DR Congo. https://investorsclubs.org/housing-sector-in-dr-congo/ (Accessed 29 July 2020).
[4] UN-Habitat (2020). COVID-19 in African Cities: Impacts, Responses and Policies. Https://unhabitat.org/covid-19-in-africa-cities-impacts-responses-and-policies (Accessed 24 August 2020). Pg. 24.
[5] World Bank (2020). Doing Business 2020. Economy Profile Congo, Democratic Republic.
https://www.doingbusiness.org/content/dam/doingBusiness/country/c/congo-dem-rep/ZAR.pdf (Accessed
2 August 2020). Pg. 24.
Availability of Data on Housing Finance
In the DRC, data related to housing such as housing finance, housing affordability, housing supply, the property market, and the regulatory framework is limited. Data must often be obtained from international and continental sources such as the United States Central Intelligence Agency, the International Monetary Fund (IMF), UN-Habitat, the United Nations Development Programme (UNDP), the World Bank Group, and the African Development Bank Group, as well as local authorities such as the Central bank of Congo (BCC) and the National Institute of Statistics (INS). Information gaps apply more to data on access to finance for housing, household housing affordability, and the housing regulatory framework.
Urban Informality
The Ministry of Planning reports that 65% of the urban population lives in inadequate housing. The population growth rate is 3.14%, associated with an annual urbanisation growth rate of 4.45%. Also, in the DRC over half of the population (54.4%) accesses water from a tap, standpipe, or bottled water. Similarly, 64% of the urban population has access to sanitation.
Websites
Ministry of Planning, National Investment Promotion Agency
Congo invest Consulting http://www.congo-invest.com/
Houzz https://www.houzz.com/
National Institute of Statistics https://www.ins.cd/
Central bank of Congo http://www.bcc.cd/
Investors Clubs https://investorsclubs.org/
UN-HABITAT SSA https://unhabitat.org/
Knight Frank https://www.knightfrank.com/
Africa Property News http://www.africapropertynews.com/
Numbeo https://www.numbeo.com/
