Housing Finance in Guinea

Overview

Guinea is a country in West Africa with a land mass of 245 857 km².[1] It is bordered by the Atlantic Ocean and  Guinea Bissau to the west, Senegal and Mali to the north, Côte d’Ivoire to the east, Liberia and Sierra Leone to the south. Its population was estimated at 13,497,237 in 2021, 37.3% of which live in urban areas.[2] The population growth rate was estimated at 3.8% in 2021.[3] Income inequality seems to have decreased with the Gini index  rising from 0.34 in 2012 to 0.3 in 2018.[4] Even so, the level of inequality is still at a level that can slow down inclusive prosperity and human development.[5]

In terms of urbanisation, Guinea’s challenges are major. Urbanisation is partly driven by the rural exodus and  the incorporation  of the countryside into the periphery of urban centres.[6] Moreover, the land in urban areas is the subject of land speculation. This makes its occupation difficult insofar as it constitutes a commodity.[7] Differences are noted between the actors (State, local authorities, direct buyers, surveyors, owners, private groups) in terms of control, preservation, appropriation and distribution of land calling into question the management of land assets. Nevertheless, since 1984 the Guinean State has established foundations for land management through political instruments for land management and land use in the legal framework. In addition, the Land and State Code (CFD) of 1992 repeals the decree of 1959, and restores the system of land title.[8] This code regulates the exercise of property rights, determines the status of the owner and infringements of property rights. In addition to this management framework, an urbanisation plan has also been established through two mechanisms. The first “regulatory urbanism” regulates private initiatives and sets safeguards for urban planning. The second “operational urbanism” is the set of procedures aimed at the implementation of the development of an area and  includes the dedicated zones of development (ZAC), urban renewal, the upgrading of informal housing and subdivisions.[9]

The challenges of urbanisation, and the slow pace of infrastructure development in response to urbanisation, are a real burden on the Guinean economy. The rate of economic growth in Guinea has been dropping, falling from 10.8% in 2016 to 3.1% in 2021, a drop of more than five points in five years. While endowed with many natural resources to support growth, governance in support of growth needs to be improved.[10] Inflation increased during this period from 8. 2% to 12. 6%.[11] These trends can be explained in part by COVID-19, which has shaken the global economy and particularly that of African countries, but is also linked to an increase in fuel prices and electricity rates.[12]

In addition to a difficult economic situation, the situation may  deteriorate further with  climate change. The main risks associated with the climate change identified in the country are the rise in surface temperatures, unpredictable rainfall patterns, the rise in sea level, droughts, storms, flooding and  bushfires.[13] As a result, many sectors are affected, particularly agriculture, as agriculture is the country’s main source of household income, providing income for 57% of rural households and employment for 52% of the workforce.[14]The increase in flooding, storm surges and erosion due to sea level rise has led to the degradation of infrastructure and migration of coastal communities. This population movement  has exacerbated the settlement of urban slums along coastal areas and in urban areas.[15] In terms of risk management, the government has adopted a vision and is making attempts to provide appropriate responses to the needs of the population, particularly in terms of housing and protecting the environment in order to secure the future of future generations.  A comprehensive land use plan should be developed to ensure the sustainability of climate-appropriate urbanisation.[16]

[1] National Institute of Statistics. Reception. https ://www.stat-guinee.org/ (Consulted on August 10, 2022).

[2] National Institute of Statistics. Reception. https ://www.stat-guinee.org/ (Consulted on August 10, 2022).

[3]World Perspective. Statistics. https://donnees.banquemondiale.org/indicator/SP.URB.GROW?locations=GN (Accessed August 10, 2022).

[4] World Bank. GINI Index Guinea. https://donnees.banquemondiale.org/indicator/SI.POV.GINI?end=2018&locations=GN&start=1991&view=chart (Consulted on August 10, 2022).

[5] Oxfam (2019). The inequality crisis in West Africa: What are the solutions to the failure of West African countries to reduce Inequalities ?. July 2019. https://oxfamilibrary.openrepository.com/bitstream/handle/10546/620837/bp-west-africa-inequality-crisis-090719-fr.pdf (Retrieved August 10, 2022) Pg. 18-19.

[6] Comité National Habitat Iii (2016). Rational contribution Habitat Iii. https://habitat3.org/wp-content/uploads/Republique-de-Guinee.pdf (Consulted on August 10, 2022). Pg7.

[7] UN-Habitat (2020). Diagnosis of urban development, implementation of public policies and challenges of sustainable urbanization in Guinea. June 2020. https://unhabitat.org/sites/default/files/2021/01/diagnostic_final_urbain_20-10-20_2.pdf (Consulted on August 10, 2022) Pg. 131.

[8] UN-Habitat (2020). Diagnosis of urban development, the implementation of public policies and the challenges of sustainable urbanization in Guinea. https://unhabitat.org/sites/default/files/2021/01/diagnostic_final_urbain_20-10-20_2.pdf (Consulted on August 10, 2022). Pg. 131.

[9] UN-Habitat (2020). Diagnosis of urban development, the implementation of public policies and the challenges of sustainable urbanization in Guinea. https://unhabitat.org/sites/default/files/2021/01/diagnostic_final_urbain_20-10-20_2.pdf (Consulted on August 10, 2022). Pg. 139.

[10]World Bank. Guinea-Overview. https://donnees.banquemondiale.org/pays/guinee (Accessed on August 10, 2022).

[11] DonnéesMondiales.com. Evolution of inflation rates in Guinea. https://www.donneesmondiales.com/afrique/guinee/inflation.php#:~:text=Pour%20l%27ann%C3%A9e%202021%2C%20une,1.018%2C61%20Francs%20d%C3%A9but%202022. (Consulted on August 10, 2022).

[12] World Bank. Guinea Context. https://donnees.banquemondiale.org/pays/guinee (Accessed on August 10, 2022).

[13] UNDP (2019). National Climate Change Strategy. http://extwprlegs1.fao.org/docs/pdf/gui208220.pdf (Accessed on August 13, 2022) Pg. 40.

[14] World Bank. Guinea-Overview. https://donnees.banquemondiale.org/pays/guinee (Accessed on  August 10, 2022).

[14] DonnéesMondiales.com. Evolution of inflation rates in Guinea.

[15] UNDP (2019). National Climate Change Strategy. http://extwprlegs1.fao.org/docs/pdf/gui208220.pdf (Accessed on  August 13, 2022). Pg. 47-48.

[16] UNDP (2019). National Climate Change Strategy. http://extwprlegs1.fao.org/docs/pdf/gui208220.pdf (Accessed on August 13, 2022). Pg. 62.

Access to Finance

Nearly 17. 4% of the Guinean population had a credit account with financial institutions in 2017.[1] Women are in the minority, with 6. 9% who have an account with a financial institution, against 10. 5% for men.[2] The rate of financial inclusion is low, with an estimated 7% of the population having a bank account in 2020, against an average of 34.2% in Sub-Saharan Africa.[3] There are 17 microfinance institutions, of which 15 were savings collections.[4] The financial sector had 683 branches or points of service for 816,236 customers and 936 employees in 2020, compared to 461 agencies or points of service for 856,464 customers and 1,071 employees in 2019.[5] Long-term loans amounted to GNF 272 500 000 000 (US$ 31,408 332) at the end of 2020, compared to 232 GNF 200 000 000 (US$ 26 763 356) at the end of 2019.[6] This increase  in long-term loans is largely (more than 85%)) driven by housing loans.[7]

In terms of housing finance, the Guinean Agency for Housing Finance (AGUIFIL) was set up in 2019 to promote housing finance with a particular focus on social housing. It  also contributes to the implementation of the development strategy of the housing sector in Guinea, in liaison with the administration and public and private bodies concerned.[8] In addition to AGUIFIL, a Guinea Mortgage Guarantee Fund (FGHG) has been set up to promote people’s access to housing finance through the provision of a mechanism to cover against the risks related to the default and death of their customers. However, housing finance in Guinea faces serious challenges as the rate of access to banking services is relatively low. In 2018, the proportion of the population having formally taken out a loan from a micro-financial institution was 3.2%, while more than 24% had taken out a financial loan.[9] In 2020, the number of loans from microfinance institutions reached 363,468, or 5. 7% of the adult population.[10] One third of loans are granted to women, two thirds to men.[11]

Interest rates on residential mortgages offered by mortgage providers fluctuate between a flat rate of 6%[12] and a ceiling rate of 20%.[13] The maximum term of residential mortgages is set at 25 years. The maximum monthly loan/household income ratio for residential home loans is set at 30% of income.[14] In other words, lending banks cannot take more than a third of a salary for the repayment of a loan.

The financial conditions for access to home ownership are difficult to meet for the majority of households in view of the low income, on the one hand, and the difficulty of access to residential credit from commercial banks, on the other hand.  3% of loans are spent on housing finance. [15] It should also be noted that the Guinean financial sector has 21 credit institutions, including 17 commercial banks, two development banks and two leasing institutions.[16]  In 2021, the number of mortgages is estimated at 130,000, capitalizing an amount of GNF 38,031,016,190 (US$4,383,452).[17] In addition, the ratio between the amount of the mortgage loan on the total value of the mortgage is 80%.[18]

[1] World Bank. Global Financial Inclusion (Global Findex) Database 2017. https://microdata.worldbank.org/index.php/catalog/3324/download/44598 (Accessed on 20 August 2022).

[2] World Bank. Global Financial Inclusion (Global Findex) Database 2017. https://microdata.worldbank.org/index.php/catalog/3324/download/44598 (Accessed on 20 August 2022).

[3] BCRG (2020). Annual Report 2020. https://www.bcrg-guinee.org/wp-content/uploads/2021/09/16-09-21_RapportAnnuel_2020_Pages.pdf (Accessed 26 August 2022). Pg. p78.

[4] BCRG (2020). Annual Report 2020. https://www.bcrg-guinee.org/wp-content/uploads/2021/09/16-09-21_RapportAnnuel_2020_Pages.pdf (Accessed 26 August 2022). Pg. 78.

[5] BCRG (2020). Annual Report 2020. https://www.bcrg-guinee.org/wp-content/uploads/2021/09/16-09-21_RapportAnnuel_2020_Pages.pdf (Accessed 26 August 2022). Pg. 78.

[6] BCRG (2020). Annual Report 2020. https://www.bcrg-guinee.org/wp-content/uploads/2021/09/16-09-21_RapportAnnuel_2020_Pages.pdf (Accessed 26 August 2022). Pg. 61.

[7] BCRG (2020). Annual Report 2020. https://www.bcrg-guinee.org/wp-content/uploads/2021/09/16-09-21_RapportAnnuel_2020_Pages.pdf (Accessed 26 August 2022). Pg. 61.

[8] AGUIThread. Program. https://aguifil.gov.gn/programme-2/ (Accessed 26 August 2022).

[9] National Institute of Statistics (2018). Statistical yearbook 2020. https://www.stat-guinee.org/images/Documents/Publications/INS/annuelles/annuaire/Annuaire_Statistique_2020.pdf (Consulted on September 13, 2022) Pg. 370.

[10] National Institute of Statistics (2020). Statistical yearbook 2020. https://www.stat-guinee.org/images/Documents/Publications/INS/annuelles/annuaire/Annuaire_Statistique_2020.pdf (Accessed on August 12, 2022). Pg. 365.

[11]World Bank. Global Financial Inclusion (Global Findex) Database 2017. https://microdata.worldbank.org/index.php/catalog/3324/download/44598 (Accessed August 20). 2022).

[12] AGUIFIL. Program. https://aguifil.gov.gn/programme-2/ (Accessed 26 August 2022).

[13] National Directorate of Economic Studies and Forecasting (2021). Monthly dashboard of the Guinean economy. https://www.stat-guinee.org/images/Documents/Publications/SSN/mef/TDBMEG_N_204_master.pdf (Accessed 26 August 2022). Pg. 26 .

[14] Ministry of Cities and Spatial Planning (2015). The National Social Housing Strategy. https://www.invest.gov.gn/document/strategie-national-de-logement-social-de-guinee (Accessed August 15, 2022). Pg. 20

[15] Lemakona.com (2019). Problems of access to social housing: No real concern in Guinea !. 4 March 2019. Lemakona.com https://lemakona.com/problematique-dacces-aux-logements-sociaux-une-reelle-preoccupation-en-guinee/ (Accessed 26 August 2022).

[16] Chunand, R. (2022). Banks: in Guinea, the sector is holding its breath. 9 February 2022. The Africa tribune. https://afrique.latribune.fr/finances/banques-assurances/2022-02-09/banques-en-guinee-le-secteur-retient-son-souffle-903763.html#:~:text=La%20Guin%C3%A9e%20compte%2021%20%C3%A9tablissements,son%20deal%20avec%20BNP%20Paribas. (Consulted 26 August 2022).

[17] Statistica. Volume of outstanding residential mortgages in Africa in 2021, by country. https://www.statista.com/statistics/1068861/outstanding-mortgages-africa-by-country/ (Accessed on 12 August 2022).

[18] Etfank. Our Credit Products. https://www.fbnbankguinea.com/nos-produits-de-credits/ (Accessed on 15 August 2022).

Affordability

Housing scarcity is partly exacerbated by a lack of industrialisation, which exacerbates the youth unemployment  rate.[1] The unemployment rate has demonstrated a sharp increase between 2019 and 2021, from 5. 0% to 6. 3%.[2] The unemployment rate for women has increased over the past 10 years, from 4.3% in 2011 to 6.5% in 2021.[3]

More than 53.1% of the Guinean population is of working age. Overall, almost two out of three people of working age  are active and employed. [4] This figure is more or less the same for urban or rural areas. Among women, nearly 56% work locally. The employment rate is estimated at 63.3%, with disparities between men and women.[5] Indeed, the employment rate is 74.3% for men[6] against 54.5% for women.[7] The survey also shows that 43.7% of the population live below the annual poverty line, estimated at GNF 5,006,533 (US$577.1).[8]

In the last Harmonized Household Living Conditions Survey (EHCVM) of 2018, 64. 5% of households indicate that they own their home, 20.3% indicate that they are tenants.[9] Almost half of urban households (49. 6%) are renters and a third (34. 5%) are owners or co-owners of their home.[10] Expenditure on water and electricity averages GNF 1 213 476 (US$139. 9)  per year, transport costs are estimated at GNF 2,559,927 (US$295.1), clothing at GNF 2,049,192 (US$236.2) and communication at GNF 1,473,583 (US$169.8).[11]

The cost of land and housing is accessible to the population since, on the market, the cost of land per square metre is estimated on average at GNF 13 333 (US$1.5 4) in urban areas. [12]  This amounts to GNF 1,999,950 (US$230.5) for a plot of 150m². The minimum price of an F3 house (2 bedrooms + living room) newly built by a developer fora surface of 75 m² in the urban center is GNF 189,000,000 (US$21784.1).[13] At the same time, the monthly rent is estimated at GNF 4,875,936 (US$562) in 2022.[14] While three years ago, according to the EHCVM, the average annual rental expenditure   rose  to GNF 1,925,856 (US$22,2) compared  to GNF 2,584,860 (US$29,8) in Conakry out  of an average housing expenditure of GNF 2,293,926 (US$264). Housing maintenance costs are estimated at GNF302,598 (US$35).[15]

The purpose of social housing is to house low- and middle-income households. The units are allocated on the basis of median income, the cash contribution made by the household and the household living costs. The cash contribution (deposit) is set at not more than 30%.[16] The cash contribution upfront reduces the monthly repayment of the loan.

[1] Aboubacar Fofana (2021). The housing challenge in Guinea. https://guineenews.org/le-defi-du-logement-en-guinee/ (Accessed September 20, 2022)

[2] World Perspective. Guinea – Unemployment (% of male labour force). https://perspective.usherbrooke.ca/bilan/servlet/BMTendanceStatPays/?codeTheme=8&codeStat=SL.UEM.TOTL.MA.ZS&codePays=GIN&optionsPeriodes=Aucune&codeTheme2=1&codeStat2=x&codePays2=GIN&optionsDetPeriodes=avecNomP (Consulted on August 10, 2022).

[3] World Perspective. Statistics Guinea – Unemployment (% of labour force female). https://perspective.usherbrooke.ca/bilan/servlet/BMTendanceStatPays/?codeTheme=8&codeStat=SL.UEM.TOTL.FE.ZS&codePays=GIN&optionsPeriodes=Aucune&codeTheme2=1&codeStat2=x&codePays2=GIN&optionsDetPeriodes=avecNomP (Accessed August 10, 2022).

[4] National Institute of Statistics (2020). Report Harmonized Survey on Living Conditions of Households (2018/2019). https://www.stat-guinee.org/images/Documents/Publications/INS/rapports_enquetes/INS_Rapport_Final_EHCVM%20GUINEE_01_03_2021.pdf (Accessed on July 30, 2022). Pg. 38.

[5] National Institute of Statistics (2020). Report Harmonized Survey on Living Conditions of Households (2018/2019). https://www.stat-guinee.org/images/Documents/Publications/INS/rapports_enquetes/INS_Rapport_Final_EHCVM%20GUINEE_01_03_2021.pdf (Accessed on July 30, 2022). Pg. .

[6] National Institute of Statistics (2020). Report Harmonized Survey on Living Conditions of Households (2018/2019). https://www.stat-guinee.org/images/Documents/Publications/INS/rapports_enquetes/INS_Rapport_Final_EHCVM%20GUINEE_01_03_2021.pdf (Accessed on July 30, 2022). Pg. .

[7] National Institute of Statistics (2020). Report Harmonized Survey on Living Conditions of Households (2018/2019). https://www.stat-guinee.org/images/Documents/Publications/INS/rapports_enquetes/INS_Rapport_Final_EHCVM%20GUINEE_01_03_2021.pdf (Accessed on July 30, 2022). Pg. .

[8] National Institute of Statistics (2020). Report Harmonized Survey on Living Conditions of Households (2018/2019). https://www.stat-guinee.org/images/Documents/Publications/INS/rapports_enquetes/INS_Rapport_Final_EHCVM%20GUINEE_01_03_2021.pdf (Accessed on July 30, 2022). Pg. 135.

[9] National Institute of Statistics (2020). Report Harmonized Survey on Living Conditions of Households (2018/2019). https://www.stat-guinee.org/images/Documents/Publications/INS/rapports_enquetes/INS_Rapport_Final_EHCVM%20GUINEE_01_03_2021.pdf (Accessed on September 19 2022). Pg. 310.

[10] National Institute of Statistics (2020). Report Harmonized Survey on Living Conditions of Households (2018/2019). https://www.stat-guinee.org/images/Documents/Publications/INS/rapports_enquetes/INS_Rapport_Final_EHCVM%20GUINEE_01_03_2021.pdf (Accessed on July 30, 2022). Pg. 310.

[11] National Institute of Statistics (2020). Report Harmonized Survey on Living Conditions of Households (2018/2019). https://www.stat-guinee.org/images/Documents/Publications/INS/rapports_enquetes/INS_Rapport_Final_EHCVM%20GUINEE_01_03_2021.pdf (Accessed  on July 30, 2022). Pg. 337.

[12] Directorate of Spatial Planning and Urban Planning (2020). Diagnosis of urban development, implementation of public policies and challenges of sustainable urbanization in Guinea /ANNEX-62. https://unhabitat.org/sites/default/files/2021/01/diagnostic_final_urbain_20-10-20_2.pdf (Accessed on 6 August 2022).

[13] AGUIFIL. https://aguifil.gov.gn/portfolio/projet-semyg-kindia/ (Accessed on 5 August 2022).

[14] NUMBEO. Cost of living. https://fr.numbeo.com/co%C3%BBt-de-la-vie/pays/Guin%C3%A9e (Accessed on August 13 2022).

[15] National Institute of Statistics (2020). Report Harmonized Survey on Living Conditions of Households (2018/2019). https://www.stat-guinee.org/images/Documents/Publications/INS/rapports_enquetes/INS_Rapport_Final_EHCVM%20GUINEE_01_03_2021.pdf (Accessed on July 30, 2022). Pg. 337.

[16] Ministry of the city and land use planning (2015). The national strategy social housing. https://www.invest.gov.gn/document/strategie-national-de-logement-social-de-guinee (Accessed on 15 August 2022).

Housing Supply

A partnership between government, the United Nations Office for Project Services (UNOPS), under its Sustainable Infrastructure Investment Initiative (S3I), and SHS Holdings was announced in 2020. The aim of the partnership is to build 200,000 affordable housing units over the next decade. 100,000 of these will be allocated to public officials, with payments deducted monthly from their wages.[1] Population growth requires more efforts, which has prompted the Guinean government to plan to build an additional 50,000 homes each year.[2] An additional 420 000 new housing units are planned by SONAPI for the ten years, of which 150 000 will be in Conakry. Taking into account the urban growth estimated at 3% in Guinea and 6. 1% in Conakry significant delivery is needed to meet the housing needs. [3] It is estimated that  660,000 units need to be produced in these areas.  To this backlog number, approximately 1 million old housing units need to be added as they require upgrading and modernisation.[4]

The association Acteurs Pour l’Habitat (APOHA) identifies four types of urban housing in Guinea. Regular old housing structured on a plot registered in colonial times occupying city centers in general, characterised by high densities.[5] New housing, including houses of varying quality, which is being developed on the periphery and within industrial areas of cities. These areas have not been the subject of urban or land development and have often been subdivided informally.  The remaining urban housing consists of bonded and registered plots on which villas and buildings of medium or high quality are developed by the public or private sector.[6] The EHCVM survey indicates that detached houses house more than a third of households (37. 6%) and one in five households (20. 1%) lives in one room. There is an average of 2. 2 people per room. Villas and buildings accommodate 1. 8% of households, 40.6% live in houses clustered together, 37.6% live in detached houses and 20.1% live in huts or barracks.[7]

Social housing in Guinea is further categorized  into three typologies: the F2 or studio, consisting of a  living room, a dining room, a  bathroom, a kitchen-store, a covered terrace and spaces of  circulation, representing a total built area  between 40 and 50 m². The F3, composed of the spaces of the F2, with one more bedroom and covering an area of 65 to 70 m² and the F4, offering 3 bedrooms for a total  area of 80 to 95 m².[8] The smallest regulatory size is 30m².

As far as building materials are concerned, urban housing mainly has cement/concrete floors (71. 9%) followed by tile/marble (25. 5%).[9] More than 95% of the roofs of the dwellings are made of sheet metal with 2.6% being roofed with cement/tile slab. Nearly three out of four households live in houses with cement/concrete/ashlar/aluminum bin/glass walls as the outer walls.[10]

[1] UNOPS (2020). Government of Guinea partners with UNOPS. https://www.unops.org/fr/news-and-stories/news/government-of-guinea-partners-with-unops-and-shs-holdings-to-build-200-00-affordable-homes

[2] AGUIFIL. Presidential Programme for the Construction of Social Housing. https://aguifil.gov.gn/programme-2/ (Accessed on  5 August 2022).

[3] Ministry in Charge of Investments and Public-Private Partnerships (2015). Urban Infrastructure. https://www.invest.gov.gn/document/note-sectorielle-infrastructures-urbaines (Accessed 1^er September 2022). Pg. 8.

[4]Ministry in Charge of Investments and Public-Private Partnerships (2015). Urban infrastructure. https://www.invest.gov.gn/document/note-sectorielle-infrastructures-urbaines (Accessed 1 ^er September 2022). Pg. 7.

[5] Habitat Worldmap. Guinea (Conakry). https://habitat-worldmap.org/pays/afrique/guinee/ (Accessed on September 13, 2022).

[6] Habitat Worldmap. Guinea (Conakry). https://habitat-worldmap.org/pays/afrique/guinee/ (Accessed on August 23, 2022).

[7] National Institute of Statistics (2020). Report Harmonized Survey on Living Conditions of Households (2018/2019). https://www.stat-guinee.org/images/Documents/Publications/INS/rapports_enquetes/INS_Rapport_Final_EHCVM%20GUINEE_01_03_2021.pdf (Accessed July 30, 2022). Pg. 304.

[8] Ministry of the City and Land Use Planning (2015). National Strategy social housing. https://www.invest.gov.gn/document/strategie-national-de-logement-social-de-guinee (Retrieved September 13, 2022).

[9] National Institute of Statistics (2020). Report Harmonized Survey on Living Conditions of Households (2018/2019). https://www.stat-guinee.org/images/Documents/Publications/INS/rapports_enquetes/INS_Rapport_Final_EHCVM%20GUINEE_01_03_2021.pdf (Accessed July 30, 2022). Pg. 317.

[10] National Institute of Statistics (2020). Report Harmonized Survey on Living Conditions of Households (2018/2019). https://www.stat-guinee.org/images/Documents/Publications/INS/rapports_enquetes/INS_Rapport_Final_EHCVM%20GUINEE_01_03_2021.pdf (Accessed on July 30, 2022). Pg. 320.

Property Markets

The Guinean property market suffers from a lack of a housing bank.[1] This complicates access to decent and affordable housing for poor households.  The EHCVM of 2018, shows that 64. 5% of households  own their homes. Among them 22.9% have a title deed/deed of ownership and 41.6% are without a title/deed.[2] Almost half of households living in urban areas  (49.6%) are renters compared to a third (34.5%)  owners or co-owners of their dwelling.[3] Among urban owners less than one in three households (27%) are owners or co-owners with title deeds and 7.5% do not have title deeds.[4] With regard to property registration, the number of procedures required, is 16 on average  in Guinea, the registration time is estimated at 151 days at a cost of 7 3% of the value of the property.[5]

The Ministry of Planning and Finance is involved in land tenure security, and the guarantee of infrastructure and network services (sanitation, water) in support of housing.[6] A digitalisation strategy, for the purposes of registration and production of  land titles, is also underway.  The completion of this process could reduce 60% of land/real estate disputes.[7]

The rent price  is estimated at GNF 17,352,084 to GNF 43,380,209 (US$2,000 to US$5,000) for a two- to three-room apartment and from GNF 52,056 251 to GNF 60,732 293 (US$6,000 to US$7,000) for a high-end villa.[8] It is customary, at the start of the rental contract, to pay 12 months in advance, and administration costs of GNF 70 000 (8. 1 US$) and one month’s rent.[9] Rents are soaring while incomes are stagnating. To find accommodation, when word of mouth has not been effective, it is necessary to use the service of direct sellers, who operate, year after year, as real estate agents.[10]

In rural areas, women have little access to land.  A strong inequality between men and women is noted even if the latter have access to the use of land ownership is categorically denied to them.[11]

[1] UN-Habitat (2020). Diagnosis of urban development, the implementation of public policies and the challenges of sustainable urbanization in Guinea. https://unhabitat.org/sites/default/files/2021/01/diagnostic_final_urbain_20-10-20_2.pdf (Accessed on August 10, 2022). Pg. 277.

[2] National Institute of Statistics (2020). Report Harmonized Survey on Living Conditions of Households (2018/2019). https://www.stat-guinee.org/images/Documents/Publications/INS/rapports_enquetes/INS_Rapport_Final_EHCVM%20GUINEE_01_03_2021.pdf (Accessed on July 30, 2022). Pg. 310.

[3] National Institute of Statistics (2020). Report Harmonized Survey on Living Conditions of Households (2018/2019). https://www.stat-guinee.org/images/Documents/Publications/INS/rapports_enquetes/INS_Rapport_Final_EHCVM%20GUINEE_01_03_2021.pdf (Accessed on July 30, 2022). Pg. 310.

[4] National Institute of Statistics (2020). Report Harmonized Survey on Living Conditions of Households (2018/2019). https://www.stat-guinee.org/images/Documents/Publications/INS/rapports_enquetes/INS_Rapport_Final_EHCVM%20GUINEE_01_03_2021.pdf (Accessed on July 30, 2022). Pg. 310.

[5]World Bank (2020). Doing Business 2020. https://www.doingbusiness.org/content/dam/doingBusiness/country/g/guinea/GIN.pdf (Accessed on August 29, 2022). Pg. 4

[6] Interview with the Minister, Ministry of Urbanism, Housing and Spatial Planning, Republic from Guinea, on August 3, 2022, Conakry, Guinea.

[7] Interview with the Minister, Ministry of Urbanism, Housing and Spatial Planning, Republic from Guinea, on August 3, 2022, Conakry, Guinea.

[8] Carver, L. (2022). Housing crisis in Conakry: Despite the intention of the new authorities to review housing arrangements, rents are soaring… 24 April 2022. GuineaeNews.Org. https://guineenews.org/crise-de-logements-a-conakry-malgre-lintention-des-nouvelles-autorites-de-revoir-les-modalites-de-logements-les-loyers-flambent/ (Accessed on September 13, 2022)

[9] Carver, L. (2022). Housing crisis in Conakry: Despite the intention of the new authorities to review housing arrangements, rents are soaring… 24 April 2022. GuineaeNews.Org. https://guineenews.org/crise-de-logements-a-conakry-malgre-lintention-des-nouvelles-autorites-de-revoir-les-modalites-de-logements-les-loyers-flambent/ (Accessed on September 13, 2022).

[10] Carver, L. (2022). Housing crisis in Conakry: Despite the intention of the new authorities to review housing arrangements, rents are soaring… 24 April 2022. GuineaNews.Org. https://guineenews.org/crise-de-logements-a-conakry-malgre-lintention-des-nouvelles-autorites-de-revoir-les-modalites-de-logements-les-loyers-flambent/ (Accessed on September 13, 2022).

[11] Briefing (2021). Land reforms in Guinea: challenges and prospects for the recognition of legitimate rights. https://pubs.iied.org/sites/default/files/pdfs/2021-03/17778FIIED.pdf (Accessed August 29, 2022). Pg. 3.

 

Policy and Legislation

AAGUIFIL was created by Decree No. 136 of 16 May 2019, to address the problem of housing in Guinea in accordance with the Sustainable Development Goals (SDGs).  In terms of construction regulations, monitoring and control is carried out by a private control office through the Directorate of Quality Control and Monitoring of Operations within AGUIFIL. It also offers developers the guarantee of a solvent clientele, and provides tax and customs advantages and  the provision of land by the State.

The development of social housing has been underway since  2012.[1] The creation of housing follows a regulatory  system through Decree 182/PRG/SGG/89 of 16 October 1989; Decree 211/PRG/SGG/89 of 23 November 1989; the Land and State Code of 30 March 1992; the Urban Planning Code 1998; the National Housing Policy vision 2021; the  Construction and Housing Code; and Investment Code, April 1998.  The Local Government Code was adopted in 2006 and gives local authorities more powers in state and land matters. The method of acquiring land is based on  the provisions of the Land and State Code and  the Civil Code. The appropriation of land may be made by purchase, gift, inheritance, exchange, acquisitive prescription or by decision of a competent authority.[2] Occupations of short or long durations, can also be done in the form of simple rentals, concessions or leases.[3] A Decree setting out the  technical characteristics of social  housing and the conditions for their implementation was drawn up in 2015.[4]

[1] Habitat Worldmap. Guinea (Conakry). https://habitat-worldmap.org/pays/afrique/guinee/ (Accessed on 23 August 2022).

[2] Ministry of the City and Spatial Planning. Technical sheet on investment in the field of real estate in the Republic of Guinea. https://www.invest.gov.gn/document/fiche-technique-sur-l-investissement-dans-le-domaine-de-l-immobilier-guinee (Accessed on 24 August 2022).

[3] Ministry of the City and Spatial Planning. Technical sheet on investment in the field of real estate in the Republic of Guinea. https://www.invest.gov.gn/document/fiche-technique-sur-l-investissement-dans-le-domaine-de-l-immobilier-guinee (Accessed on 24 August 2022).

[4] Ministry of Cities and Spatial Planning (2016). Order fixing the technical characteristics of social housing and the conditions for their implementation. https://www.invest.gov.gn/document/arrete-portant-fixation-des-caracteristiques-technique-des-logements-sociaux-et-conditions-de-leur-mise-en-%C5%93uvre (Accessed on 24 August 2022).

Opportunities

The issue of housing is at the heart of the Guinean government’s concerns. The Presidential Programme for the Construction of Social Housing projects an annual construction of 50,000 housing units. In addition, more than 44 000 hectares of land have been secured and secured by the State with the aim of being allocated to real estate developers in the framework of a public-private partnership.[1] In addition, it is planned with the Société Nationale d’Aménagement et de Promotion Immobilière (SONAPI), the banking and  servicing of 17,000 ha of building land as well as the production of 40,000 social housing units  in Conakry and in the seven administrative regions. This public-private partnership programme  is estimated at GNF 13 000 billion  (1. US$ 5 billion) over 10 years. There are significant opportunities for partnerships in the implementation of this programme.

The implementation of projects must also  integrate the criteria of social diversity and offer essential services in accordance with the specificities of the project including roads, sanitation, drinking water supply, electricity network, green spaces, sports, commercial facilities, schools, health facilities and places of worship. There are significant opportunities to provide these supporting services.

[1] AGUFIL. https://aguifil.gov.gn/programme-2/ (Accessed 31 August 2022).

Availability of Data on Housing Finance

Data on housing finance in Guinea are mainly collected and shared by the Central Bank of the Republic of Guinea The National Institute of Statistics (INS) contributes to the collection and sharing of data on population housing and its financing. These bodies are generally interested in the country’s economic growth, inflation, loan interest rates and exchange rate developments, the number of mortgages and the number of loans. Data is collected at various frequencies by the BCRG. They can be monthly, quarterly or annual.

The main challenges related to housing finance data are the publication of data with a view to making them accessible to the general public. Most documents send us to sources that cannot be found or do not exist. The other major problem is the lack of dates as to when the data was collected. The data published by the NSI are generally disaggregated by gender, but the collection is not regular.  Available data  on climate change come from the National Directorate of Meteorology for Climate-related Disasters and from the annual postponements of the NSI or from reports by UNDP and UN-Habitat.

Green Applications for Affordable Housing

Guinea’s affordable housing sector offers little or no green measures to limit the sector’s impact on climate change. However, in 2011, a project to construct three buildings using environmentally sustainable procedures was set up as demonstration houses for vocational training centres.  In each building a solar oven and a solar “grid” dish without the use of coal, electricity or gas was installed. An electricity circuit in a 12-volt system including a fridge, fans, lamps, sockets and connections to (re)charge the batteries (mobile phones, computers, etc.), a connection to the  common phyto-purification wastewater disposal system  (filtering by means of plants) were also installed.[1] More recently, all of the new homes as part of the partnership with UNOPS will have renewable energy and disease prevention technology including solar panel roofs, waste-to-energy technology and mosquito-repelling coatings.[2]

The main source of electricity for the Guinean population is the battery lamp (54%). The grid electricity network is the second source of lighting and is used by 31.6% of households.[3] Guinea has hydropower sources which could generate significant income for the country if it is managed well but it could also adversely impact on biodiversity and the environment.[4] The proportion of households with access to drinking water is estimated at 77.8% in Guinean territory against 95% in urban areas.[5] In terms of sanitation, the type of toilet most used by households is the simply paved latrine (34%) followed by the rudimentary open hole (19.3%), flush toilets (14.9%), covered paved latrines (7.6%), and lastly Ventilated Improved Pit (VIP) latrines (3.5%).[6]

[1] Ecotraining24. Guinea Project. https://sites.google.com/site/ecotraining24/projet-guinee (Accessed September 1, 2022).

[2] UNOPS (2020). Government of Guinea partners with UNOPS. https://www.unops.org/fr/news-and-stories/news/government-of-guinea-partners-with-unops-and-shs-holdings-to-build-200-00-affordable-homes

[3] National Institute of Statistics (2020). Report Harmonized Survey on Living Conditions of Households (2018/2019). https ://www.stat-guinee.org/images/Documents/Publications/INS/rapports_enquetes/INS_Rapport_Final_EHCVM%20GUINEE_01_03_2021.pdf (Accessed on July 30, 2022). Pg. 330.

[4] World Bank. Guinea-Overview. https://donnees.banquemondiale.org/pays/guinee (Accessed on August 10, 2022).

[5] National Institute of Statistics (2020). Report Harmonized Survey on Living Conditions of Households (2018/2019). https ://www.stat-guinee.org/images/Documents/Publications/INS/rapports_enquetes/INS_Rapport_Final_EHCVM%20GUINEE_01_03_2021.pdf (Accessed on July 30, 2022). Pg. 327.

[6] National Institute of Statistics (2020). Report Harmonized Survey on Living Conditions of Households (2018/2019). https://www.stat-guinee.org/images/Documents/Publications/INS/rapports_enquetes/INS_Rapport_Final_EHCVM%20GUINEE_01_03_2021.pdf (Accessed on July 30, 2022). Pg. 334.

Websites

Central Bank of the Republic of Guinea: www.bcrg-guinee.org/

National Institute of Statistics: www.stat-guinee.org

Guinean Agency for Housing Finance (AGUIFIL): www.aguifil.gov.gn/

Ministry of Investment and Public Private Partnerships: www.invest.gov.gn/

Private Investment  Promotion Agency  : www.apip.gov.gn/

Ministry of the Economy and   Government: www.mefp.gov.gn/

Ministry of Budget: www.mbudget.gov.gn/

Ministry of Urban planning, housing and spatial planning: www.habitatguinee.org/

National Directorate of Meteorology for Climate-Related Disasters: www.meteoguinee.net/