Housing Finance in Liberia
Overview
This profile is also available in French here.
To download a pdf version of a full 2023 Liberia country profile, click here.
The Central Bank of Liberia expects annual growth to rise from 3.6% in 2021 to 4.5% in 2022 and inflation to fall from 13.1% to 5.5%. The average lending rate has remained stable at 12.4% since 2019, and the exchange rate fell from L$171.28 to L$152.37 (US$1.00) on July 1, 2022. Given that Liberia has a dual currency regime that recognises the US dollar and the Liberian dollar as legal tender, a decrease in the exchange rate reduces housing affordability by creating a savings of L$18.91 for every US$1 created.
Liberia has a population of 5.3 million people, with 2.66 million living in cities. According to the World Bank, Liberia’s population growth rate is 2.4%, its slum population is 70%, and its population living below the national poverty line is 50.9%. Because wages in Liberia are low, housing affordability is a major issue. In addition, World Bank data for 2021 show an unemployment rate of 4.1%, a population living below the national poverty line of 50.9%, and a 90% rate of informal employment. Because of these conditions, many financial products and current housing solutions are out of reach for a large portion of the population. As a result, in order to increase affordability, the National Housing Authority (NHA) provides land to private developers at a price lower than the current market price through a public-private partnership arrangement.
Flooding is the most common climatic risk in urban areas. This is because Monrovia has the world’s wettest capital city, with an annual average rainfall of 179 inches (4.547 meters). As a result, during the rainy season, several communities are flooded and residents are displaced. To address climatic risks, a national disaster management policy is in place.
The rental rate in urban areas was 46.3%, with a two-bedroom house renting for L$30,474 (US$200) in central Monrovia. The cheapest newly built two-house apartment (150 square metres) by a private developer, Millennium Property, costs L$6.09 million (US$40 000), making it out of reach for civil servants earning the minimum wage of L$19 046 (US$125).
The number of outstanding residential mortgages in Zambia increased from 337 in 2021 to 522 in 2022. The total mortgage amount was L$2.29 billion (US$15 million), with a maximum mortgage amount of US$100,000. There were no changes in the LBDI’s minimum interest rate of 8% or mortgage term of 10 years.
The diaspora community represents an untapped opportunity for Liberia’s low-income earners, who currently rely on informal housing solutions. There are no formal private developers offering rental housing or rent-to-own options in the area. Lenders should consider mortgage refinancing options and extend the current maximum mortgage term to more than ten years.
Find out more information on the housing finance sector of Liberia, including key stakeholders, important policies, and housing affordability:
- Overview
- Access to Finance
- Affordability
- Housing Supply
- Property Markets
- Policy and Legislation
- Opportunities
- Availability of Data on Housing Finance
- Green Applications for Affordable Housing
- Websites
- Additional Sources
Each year, CAHF publishes its Housing Finance in Africa Yearbook. The profile above is from the 2023 edition, which has up-to-date profiles for 54 African countries.
Download yearbookLiberia
Overview
Liberia has a population of 5.3 million people of which 2.66 million people are urbanised.[1] The World Bank estimates Liberia’s population growth rate at 2.4%;[2] slum population at 70%;[3] and population living below the national poverty line at 50.9%.[4]
The Government of Liberia is developing a National Urban Policy (NUP). Some key areas that the NUP will address are land governance, socio-economic development, municipal finance, decentralisation, environment, resilience and climate change. Urban management practitioners are optimistic that the NUP will directly impact the housing sector.
The Central Bank of Liberia (CBL) projects an increase in annual growth rate from 3.6%[5] in 2021 to 4.5% in 2022.[6] The CBL also reported a decrease in inflation from 13.1% in December 2020 to 5.5% in December of 2021,[7] a stable average lending rate of 12.4% since 2019[8] and a decrease in the exchange rate from L$171.28 (US$1.12)[9] on 1 July 2021[10] to L$152.37 (US$1.00) on 1 July 2022.[11] Given that Liberia has a dual currency regime that recognises the United States (US) dollar and the Liberian dollar as legal tenders, the decrease in the exchange rate impacts housing affordability by creating a savings of L$18.91 on every US$1 especially for individuals that earn their salaries in Liberian dollars but are required to pay their rent in US dollars.
Flooding is a dominant climatic risk in urban areas. This is because Monrovia is the wettest capital city in the world with an annual average rainfall of 179 inches (4.547 metres).[12] Furthermore, years of civil war (1989-2003) severely damaged urban infrastructure. As a result, several communities are flooded and residents made homeless during the rainy season.[13] There is a National Disaster Management Policy in place to address climatic risks. Also in 2022, the World Bank approved a L$6.09 billion (US$40 million) financing package to increase flood resilience and access to urban infrastructure in several urban communities, which will impact the housing sector significantly.[14]
[1] Worldometer (2022). Liberia Population Live. https://www.worldometers.info/world-population/liberia-population/ (Accessed 13 August 2022). Pg. 1.
[2] The World Bank (2021). Population Growth (annual %). Liberia.
https://data.worldbank.org/indicator/SP.POP.GROW?locations=LR (Accessed 14 August 2022). Pg. 1.
[3] The World Bank (2018). Population Living in Slums (% of urban population) – Liberia. https://data.worldbank.org/indicator/EN.POP.SLUM.UR.ZS?locations=LR (Accessed 14 August 2022). Pg. 1.
[4] World Bank Group (2021). Poverty and Equality Brief 2021. https://databankfiles.worldbank.org/data/download/poverty/987B9C90-CB9F-4D93-AE8C-750588BF00QA/AM2020/Global_POVEQ_LBR.pdf ( Accessed 15 August 2022). Pg. 1.
[5] Central Bank of Liberia (2021). Financial and Economic Bulletin Vol. 22, No. 1, 2021. https://www.cbl.org.lr/sites/default/files/documents/2nd_quarter_bulletin_2021.pdf Accessed 9 July 2022). Pg. i.
[6] Central Bank of Liberia (2021). Annual Report 2021. https://public.cbl.org.lr/doc/2021annualreport.pdf (Accessed 9 July 2022). Pg. 6.
[7] Central Bank of Liberia (2021). Annual Report 2021. https://public.cbl.org.lr/doc/2021annualreport.pdf (Accessed 9 July 2022). Pg. 6.
[8] Central Bank of Liberia (2021). Annual Report 2021. https://public.cbl.org.lr/doc/2021annualreport.pdf (Accessed 14 August 2022). Pg. 43.
[9] Dollar amounts have mostly been rounded off.
[10] Centre for Affordable Housing Finance in Africa (2021). 2021 Yearbook. https://housingfinanceafrica.org/app/uploads/2021/11/2021_CAHF-yearbook-final-compressed-1.pdf (Accessed 14, 2022). Pg. 149.
[11] Centre for Affordable Housing Finance in Africa (2022). Exchange Rate.
[12] Travia (n.d.). Which is the wettest capital in the world? https://quizzclub.com/games/welcome/which-is-the-wettest-capital-city-in-the-world/answer/2339205/ (Accessed 22 July 2022). Pg. 1.
[13] African Star (2022). Liberian Capital Hit by Rain and Flooding. 10 July 2022. African Star. https://www.africanstar.org/liberian-capital-hit-by-heavy-rain-flooding/ ( Accessed 22 July 2022). Pg. 1.
[14] The World Bank (2022). 200,000 Persons to Benefit from Improved Urban Management and Flood Resilience. https://www.worldbank.org/en/news/press-release/2022/05/17/afw-200-000-persons-to-benefit-from-improved-urban-management-and-flood-resilience ( Accessed 22 July 2022). Pg. 1.
Access to Finance
To strengthen financial inclusion, financial services are decentralised[1] and diversified.[2] Most importantly, women do not require permission from their male family members to access credit and purchase or sell property.[3] The CBL reported that, at the end of 2021, the total loans disbursed by the entire banking sector to males was 54% and to females was 46%.[4]
Although there are nine commercial banks in Liberia, the Liberian Bank for Development and Investment (LBDI) is the sole provider of residential mortgages. These mortgages are financed through LBDI’s reinvestment due to the absence of mortgage refinancing companies. The underwriting process does not favour the informal sector because it requires a land title deed, current payment of property tax, an employment letter, and a bank account.[5] As a result, the informal sector relies on savings clubs and credit bureaus to attend to their financial needs.[6]
At the LBDI, from October 2021 to July 2022, there were no changes in the minimum interest rate of 8%; maximum interest rate of 10%; mortgage term of 10 years; maximum residential mortgage Loan-To-Value Ratio of 70%; and maximum installment to household income ratio on residential mortgages of 33%. Also, total mortgage amount was L$2.29 billion US$15 million) and the maximum mortgage amount was L$15.24 million (US$100 000). In addition, the minimum mortgage amount was L$761 850 (a US$5 000) and the minimum income required to access mortgage was L$38 092 (US$250). The number of residential mortgages outstanding increased from 337 in 2021 to 522 in 2022. Data collected by LBDI is disaggregated by gender but unpublished.[7]
The Afriland First Bank Liberia has housing finance products tailored for land acquisition, home construction, expansion and renovation[8] but its underwriting processes do not favour the informal sector because they also require land title deeds, current payment of property tax, employment letters, and bank accounts. The CBL reported an increase in total construction loans from 9.5% in 2020[9] to 10.5% in 2021,[10] but it is unclear how much of the construction loans applied to housing construction.
There are 13 microfinance institutions[11] and the CBL reported an increase in the number of microfinance clients from 44 473 in 2020 to 58 100 in 2021.[12] Financial experts believe that portions of the non-housing microfinance loans also end up being used for items such as home renovation and improvement, household furniture and appliances. Foundation for Women is the only institution that is currently piloting a housing microfinance loan product with a total of eight beneficiaries in which six are females. Its minimum loan amount is L$106 659 (US$700) and maximum loan amount L$457 110 (US$3 000) with an interest rate 18%.[13]
Liberia’s capital market is undeveloped. Therefore, efforts are being made to expand the regulatory framework to improve the market. Domestically, United Bank for Africa and Ecobank Liberia are involved in wholesale banking at undisclosed rates.
[1] Central Bank of Liberia (2021). Annual Report 2021. https://www.cbl.org.lr/sites/default/files/documents/2021annualreport.pdf (Accessed 19 August 2022). Pg. 63.
[2] Central Bank of Liberia (2021). Annual Report 2021. https://www.cbl.org.lr/sites/default/files/documents/2021annualreport.pdf (Accessed 19 August 2022). Pg. 68.
[3] Interview with Madia Walker, Premier Events Management & Logistics, 10 August 2022, Monrovia, Liberia.
[4] Central Bank of Liberia (2021). Annual Report 2021. https://www.cbl.org.lr/sites/default/files/documents/2021annualreport.pdf (Accessed 19 August 2022). Pg. 78.
[5] Interview with Joshua T. Stevens, Liberian Bank for Development & Investment, 30 July 2022, Monrovia, Liberia.
[6] Interview with Peter D. Morris, Petty Trader, 30 July 2022, Monrovia, Liberia.
[7] Interview with Joshua T. Stevens, Liberian Bank for Development & Investment, 30 July 2022, Monrovia, Liberia.
[8] Afriland First Bank (2022). Financing. https://afrilandfirstbanklb.com/index.php/en/financingi (Accessed 23 August 2022). Pg. 1.
[9] Central Bank of Liberia (2020). Annual Report 2020. https://public.cbl.org.lr/doc/annualreport_2020.pdf (Accessed 23 July 2022). Pg. 66.
[10] Central Bank of Liberia (2021). Annual Report 2021. https://public.cbl.org.lr/doc/2021annualreport.pdf (Accessed 9 July 2022). Pg. 69.
[11] Central Bank of Liberia (2021). Annual Report 2021. https://public.cbl.org.lr/doc/2021annualreport.pdf (Accessed 23 July 2022). Pg. 70.
[12] Central Bank of Liberia (2021). Annual Report 2021. https://public.cbl.org.lr/doc/2021annualreport.pdf ( Accessed 23 July 2022). Pg. 71.
[13] Interview with Magnus Gayflor, Foundation for Women, 16 August 2022, Monrovia, Liberia.
Affordability
Housing affordability in Liberia is a major challenge because salaries are low. A 2016 survey conducted by Liberia Institute of Statistics and Geo Information Services (LISGIS) indicated that only 13.5% of the population earned L$30 000 (US$197) and above.[1] Also, World Bank data for 2021 indicates an unemployment rate of 4.1%;[2] the population living below national poverty line at 50.9%[3] and informal employment 90%.[4] Liberia’s Gini coefficient, based on the LISGIS survey, is 0.33.[5] These conditions make financial products and current housing solutions unaffordable to a large portion of the population. Therefore, to enhance affordability, the National Housing Authority (NHA) provides land to private developers below current market price under a public private partnership arrangement.[6]
The 2016 survey conducted by LISGIS indicated that households spent 16% of their monthly income on education, 1.5% on health and 3.3% on rent.[7] Rental housing in urban areas was 46.3%[8] and the rental price of a two-bedroom house ranged from L$30 474 (US$200) to L$49 520 (US$325) in central Monrovia and L$11 428 (US$75) to L$19 046 (US$125) in the suburbs.[9] The cost of electricity in 2021 was L$36 (US$0.25) per kilowatt-hour;[10] water L$0.76 (US$0.005) per gallon and monthly sewerage for two to three-bedroom residential homes L$1 524 (US$10).[11] A parcel of unserviced land (1 012m2) in the suburbs of Monrovia is sold for between L$228 555 (US$1 500) and L$304 740 (US$2 000).[12] Based on the LISGIS survey, national owner occupied housing is 44.6%.[13] The price of the cheapest newly built two-bedroom house (150 square metres) by a private developer, Millennium Propertys is L$6.09 million (US$40 000)[14] making it unaffordable to civil servants that earn the minimum salary of L$19 046 (US$125).[15] At LBDI, the minimum income required for a mortgage is L$38 093 (US$250), the mortgage down payment is 20%, and the monthly repayments relative to household income is 33%.[16]
At the end of 2021, the CBL reported the banking sector’s total nonperforming loans at 22.6% or L$15.044 billion (US$98.7 million)[17] and that outstanding microfinance loans increased from L$304.74 million (US$2.0 million) in 2020 to L$518.06 million (US$3.4 million) in 2021.[18] Also, by 30 July 2022, at LBDI, the total number of non-performing mortgages was 119.[19] There are no green finance products in Liberia at present.
[1] Liberia Institute of Statistics & Geo Information Services (2017). Household Income & Expenditure Survey 2016. https://ekmsliberia.info/wp-content/uploads/2021/09/HIES-2016_StatisticalAbstract_Final_final.pdf (Accessed 27 July 2022). Pg. 59.
[2] World Bank (2021). Liberia Overview. https://data.worldbank.org/country/liberia?view=chart (24 July 2022). Pg.1.
[3] World Bank Group (2021). Poverty and Equality Brief 2021. https://databankfiles.worldbank.org/data/download/poverty/987B9C90-CB9F-4D93-AE8C-750588BF00QA/AM2020/Global_POVEQ_LBR.pdf (Accessed 15 August 2022). Pg. 1.
[4] World Bank (2020). Recovery of Economic Activity for Liberian Informal Sector Employment (P174417). https://documents1.worldbank.org/curated/en/198161608648605143/pdf/Appraisal-Environmental-and-Social-Review-Summary-ESRS-Recovery-of-Economic-Activity-for-Liberian-Informal-Sector-Employment-P174417.pdf (Accessed 15 August 2022). Pg. 5.
[5] Liberia Institute of Statistics & Geo Information Services (2017). Household Income & Expenditure Survey 2016. https://ekmsliberia.info/wp-content/uploads/2021/09/HIES-2016_StatisticalAbstract_Final_final.pdf (Accessed 27 July 2022). Pg. 21.
[6] Interview with T-Maxwell Davis, National Housing Authority, 8 August 2022, Monrovia, Liberia.
[7] Liberia Institute of Statistics &Geo Information Services (2017). Household Income & Expenditure Survey 2016. https://ekmsliberia.info/wp-content/uploads/2021/09/HIES-2016_StatisticalAbstract_Final_final.pdf (Accessed 27 July 2022). Pg. 27.
[8] Liberia Institute of Statistics &Geo Information Services (2017). Household Income & Expenditure Survey 2016. https://ekmsliberia.info/wp-content/uploads/2021/09/HIES-2016_StatisticalAbstract_Final_final.pdf (Accessed 27 July 2022). Pg. 33.
[9] Interview with J. Motalee Davis, National Housing Authority, 8 August 2022, Monrovia, Liberia.
[10] The New Dawn (2021). Liberia: LERC Reduces Tariffs on Electricity. https://allafrica.com/stories/202112140322.html (Accessed 20 July 2022). Pg. 1.
[11] Liberia Water & Sewer (n.d.). Billings Policy and Procedures. https://www.lwsc.gov.lr/doc/Policy%20on%20Tarriff,%20Payments%20among%20others_1.PDF (Accessed 20 July 2022). Pgs. 1 & 4.
[12] Interview with J. Motalee Davis, National Housing Authority, 8 August 2022, Monrovia, Liberia.
[13] Liberia Institute of Statistics & Geo Information Services (2017). Household Income & Expenditure Survey 2016. https://ekmsliberia.info/wp-content/uploads/2021/09/HIES-2016_StatisticalAbstract_Final_final.pdf (Accessed 27 July 2022). Pg. 33.
[14] Millennium Propertys (2022). Application Form. https://millenniumpropertys.com/ (Accessed 16 August 2022). Pg. 2.
[15] Interview with J. Motalee Davis, National Housing Authority, 8 August 2022, Monrovia, Liberia.
[16] Interview with Joshua T. Stevens, Liberian Bank for Development and Investment, 30 July 2022, Monrovia, Liberia.
[17] Central Bank of Liberia (2021). Annual Report 2021. https://www.cbl.org.lr/sites/default/files/documents/2021annualreport.pdf (Accessed 25 August 2022). Pg. 69.
[18] Central Bank of Liberia (2021). Annual Report 2021. https://www.cbl.org.lr/sites/default/files/documents/2021annualreport.pdf (Accessed 25 August 2022). Pg. 71.
[19] Interview with Joshua T. Stevens, Liberian Bank for Development & Investment, 30 July 2022, Monrovia, Liberia.
Housing Supply
UN-Habitat’s 2014 Liberia Housing Profile indicates that the housing stock was 327 000 dwellings of which 44% (144 000) were in poor condition. Also, 512 000 new dwellings are needed by 2030.[1] Plans are currently underway to conduct a National Housing and Population Census that will provide current data on Liberia’s housing sector.
Meanwhile, in 2022, the NHA finalised agreements with private developers Structure & Logistics Limited, Global Housing Solutions and Liberia Asset Management Company (LAMCO) to expand its public private partnership portfolio and increase Liberia’s affordable housing stock.[2]
Regarding housing typologies in urban areas, the LIGIS 2016 survey indicated that owner occupied housing was 29.3% and rental housing 46.3%. Also in urban areas, women ownership for rental housing was 31.3% and owner occupied housing 39.5%.[3] Concrete, cement blocks, zinc, iron and tin constitute 55% of the materials used to construct walls and almost all roofs (96.0%) are made of zinc sheets, iron or tin.[4] Apart from crush rocks, sand and timber that are locally available, materials such as cement, roofing sheets, and steel rods are imported and available in building material stores and shops within 50km radius.[5] A bag of cement costs L$1 295 (US$8.50); an eight inch cement block costs L$305 (US$2); six inch cement block costs L$152.37 (US$1) and a bundle of 100% aluminum zinc (20 sheets) L$25 141 (US$165). Currently, there is no data available regarding the durability of these materials.[6]
Obtaining a construction permit requires 87 days, 25 procedures[7] and costs L$7 619 (US$50) for a Liberian owned construction company and L$38 093 (US$250) for a foreign owned company.[8] Construction labour costs range from 20% to 25% of material costs.[9] Currently, there are no gender restrictions on the ownership of construction companies and there is no industry body for developers. There is also no data available on the number of people employed in the construction sector.[10]
Basic services delivery is significantly hindered due to the poor state of urban infrastructure.[11] A 2020 World Bank’s report indicated that 27.5%[12] of the total population had access to electricity. In additional, a 2019 Liberia Water and Sewer Corporation report suggested that less than 3% of the population had access to piped water, likely contributing to the low rate of access to improved sanitation being less than 17% of the population.[13] Millennium Propertys, a private developer, is currently paying for its water supply, internal roads, sewer system.[14]
Regarding manpower development, there are several tertiary and vocational institutions that offer courses in engineering and general building construction.[15]
The smallest residential plot size is 1 012m2. The NHA is implementing a Land Lease Purchase programme which enables low income earners to purchase smaller plots of land (232.25m2) for housing construction and, to date, more than 1 000 people (men and women) have benefited.[16]
[1] UN-Habitat (2014). Liberia Housing Profile. https://unhabitat.org/sites/default/files/documents/2019-05/liberia_housing_sector.pdf , (Accessed 20 August 2022). Pg. 49.
[2] Interview with Rufus Stevens, National Housing Authority, 17 July 2022, Monrovia, Liberia.
[3] Liberia Institute of Statistics & Geo Information Services (2017). Household Income & Expenditure Survey 2016,.https://ekmsliberia.info/wp-content/uploads/2021/09/HIES-2016_StatisticalAbstract_Final_final.pdf ( Accessed 27 July 2022). Pg. 33.
[4] Liberia Institute of Statistics & Geo Information Services (2017). Household Income & Expenditure Survey 2016. https://ekmsliberia.info/wp-content/uploads/2021/09/HIES-2016_StatisticalAbstract_Final_final.pdf (Accessed 27 July 2022). Pg. 35.
[5] Interview with J. Motalee Davis, National Housing Authority, 17 July 2022, Monrovia, Liberia.
[6] Interview with Admen Jetty, Jetty Building Materials Store, 17 August 2022, Monrovia, Liberia.
[7] World Bank (2020). Doing Business Liberia. https://archive.doingbusiness.org/content/dam/doingBusiness/country/l/liberia/LBR-LITE.pdf (Accessed 16 2022). Pg. 1.
[8] Republic of Liberia (n.d.). Ministry of Public Works. https://www.mpw.gov.lr/sites/default/files/documents/CCCS%20Procedure%20form.pdf (Accessed 16 August 2022). Pg. 2.
[9] Interview with J. Motalee Davis, National Housing Authority, 17 July 2022, Monrovia, Liberia.
[10] Interview with J. Motalee Davis, National Housing Authority, 17 July 2022, Monrovia, Liberia.
[11] UN-Habitat (2017). A National Urban Policy of Liberia-Diagnosis Paper. https://www.citiesalliance.org/sites/default/files/Cities_Liberia_WEB.PDF (Accessed 15 August 2022). Pg. 31.
[12] World Bank (2020). Access to electricity – Liberia. https://data.worldbank.org/indicator/EG.ELC.ACCS.ZS?locations=LR (Accessed 31 July 2022). Pg.1.
[13] Liberia Water and Sewer Corporation (2019). Resettlement Policy Framework. https://documents1.worldbank.org/curated/ru/434861550629914423/Resettlement-Policy-Framework.pdf (Accessed 2 August 2022). Pg. 9.
[14] Interview with J. Motalee Davis, National Housing Authority, 17 July 2022, Monrovia, Liberia.
[15] Interview with J. Motalee Davis, National Housing Authority, 17 July 2022, Monrovia, Liberia.
[16] Interview with J. Motalee Davis, National Housing Authority, 17 July 2022, Monrovia, Liberia.
Property Markets
Land ownership in Liberia is formal and by title deed. Only Liberian citizens and businesses can own land, consistent with Article 11 of the Constitution of Liberia. To date, less than 20% of properties in Liberia have title deeds and in Monrovia 70% of residents live in slums with insecure tenure.[1] Liberia does not have a digitised land cadastral, and the current registry is manual.[2] Therefore, current data on the number of housing transactions and new registrations is not readily available.
Based on the World Bank Doing Business 2020 report, the registration of property requires 10procedures and can be completed in 44 days at a cost 13.3% of the property value.[3] Currently, there is no data available regarding the number of properties that are registered for property rate payments in the main urban centres or the number of people that are employed in real estate activities.
Meanwhile, there are several formal real estate agents including Integrity Real Estate, Jalmeze Real Estate Agents, Priceless Real Estate, Apartments Liberia and Villiancy Realty Inc. There are also several community-based informal estate agents.
Liberia’s property market is largely unregulated with limited formal actors. The price of one lot of un-serviced land is between L$228 555 (US$1 500) and L$304 740 (US$2 000) in the suburbs of Monrovia and the housing most in demand are two and three-bedroom units.[4] In the formal market, Millennium Propertys sells a two-bedroom house from L$6.09 million (US$40 000) to L$21.33 million (US$140 000) and three-bedroom houses from L$9.9 million (US$65 000) to L$45.7 million (US$300 000).[5] There is also a residential resale market which is informal and largely focused on the sale of two and three-bedroom housing. The rental price of a two-bedroom house ranges from L$30 474 (US$200) to L$49 520(US$325) in central Monrovia and L$11 428 (US$75) to L$19 046 (US$125) in the suburbs.[6]
[1] City Alliance (2020). Greater Monrovia Urban Development Strategy. https://www.citiesalliance.org/sites/default/files/2021-06/CitiesAlliance_GrMonroviaUrbanDevStrategy_2021.pdf (Accessed 6 August 2022). Pg. 34.
[2] City Alliance (2020). Greater Monrovia Urban Development Strategy. https://www.citiesalliance.org/sites/default/files/2021-06/CitiesAlliance_GrMonroviaUrbanDevStrategy_2021.pdf (Accessed 6 August 2022). Pg. 33.
[3] World Bank Group (2020). Doing Business 2020: Economy Profile Liberia. https://www.doingbusiness.org/content/dam/doingBusiness/country/l/liberia/LBR.pdf (Accessed 8 August 2022). Pg. 22.
[4] Interview with J. Motalee Davis, National Housing Authority, 17 July 2022, Monrovia, Liberia.
[5] Millennium Propertys (2022). Application Form https://millenniumpropertys.com/ ( Accessed 17 August 2022). Pg. 2.
[6] Interview with J. Motalee Davis, National Housing Authority, 17 July 2022, Monrovia, Liberia.
Policy and Legislation
The NHA has shifted its policy from direct housing construction to building public private partnerships and creating an enabling environment by providing subsidised land, intra-governmental coordination and technical supervision to attract private developers. The Government of Liberia does not provide basic income grants but intends to subsidise basic services in areas where housing developments are within range of the national grid.[1]
On 10 August 2022, Liberian President George M. Weah recalled the National Legislature from recess to approve a new date to conduct of the National Housing and Population Census which will provide current data that will inform housing sector investment and development.[2]
In 2022, the cement market expanded to allow Fouta Cement Corporation to establish a L$3.3 billion (US$21.6 million) grinding plant in Liberia.[3] Since 1968, Liberia Cement Corporation (CEMENCO) has been the sole company importing semi-finished cement for packaging in Liberia because the Government of Liberia is a major shareholder. Because Liberia’s housing sector relies heavily on cement, observers believe this policy action will reduce the price of cement. There are no new finance sector and green building legislations.
The legal framework governing urban land and property ownership in Liberia is strongly guided by four major laws: 1.) The Land Authority Act 2016 which empowers the Liberia Land Authority as the agency of government responsible for land administration, planning, formulation of land use and management policies; 2.) The Land Rights Act 2018 outlines the various forms of land ownerships, eligibility for ownership, legal protection, regulations for land use, and acquisition procedures; 3.) The Act Against Criminal Conveyance of Land 2014 which outlines the various offenses and penalties regarding acts of criminal land transactions; and 4.) The Liberian Commercial Code of 2010.
Women’s rights to own, inherit and sell land is guaranteed under Article 11 of the Liberian Constitution and chapter three of the Domestic Relations Law of Liberia. Regarding the enforcement of evictions, Article 20 of the Constitution of Liberia states: “No person shall be deprived of life, liberty, security of the person, property, privilege or any other right except as the outcome of a hearing judgment consistent with the provisions laid down in this Constitution and in accordance with due process of law.” Therefore, eviction is carried out by the courts.
[1] Interview with Rufus Stevens, National Housing Authority, 17 July 2022, Monrovia, Liberia.
[2] Executive Mansion (2022). President Weah Recalls Legislators for Special Session on Critical National Issues. https://www.emansion.gov.lr/2press.php?news_id=5596&related=7&pg=sp (Accessed 10 August 2022). Pg. 1.
[3] CN Cement (2022). Fouta Cement prepares to launch new grinding mill in Liberia. https://www.cemnet.com/News/story/172854/fouta-cement-prepares-to-launch-new-grinding-mill-in-liberia.html (Accessed 11 August 2022). Pg. 1.
Opportunities
Liberia’s large diaspora community presents an untapped opportunity because its personal remittance inflow increased from L$32.3 billion (US$212 million) in 2020 to L$39.3 billion (US$257.9 million) in 2021,[1] which can benefit the housing sector.
At present, low-income earners rely on informal housing solutions. There are no formal private developers that offer rental housing or rent-to-own options. The current market largely supplies two and three-bedroom units, yet there is a market opportunity for one-bedroom units. There are market opportunities to maximise the use of available alternative building materials such as like laterite, timber and clay to reduce the housing sector’s reliance on imported building materials and reduce construction costs to enhance affordability.
Lenders should consider mortgage refinancing options, increase the current maximum mortgage term to more than 10 years and increase the number of mortgage providers to make their products accessible and affordable. Lenders should also consider investing in housing finance products that support incremental construction because many Liberians construct their own homes.
[1] Central Bank of Liberia (2021). Annual Report 2021. https://www.cbl.org.lr/sites/default/files/documents/2021annualreport.pdf (Accessed 19 August 2022). Pg. 52.
Availability of Data on Housing Finance
Access to housing finance data is a major challenge. The CBL collects data annually on construction finance and microfinance and publishes it online. The gap lies in reporting residential mortgages or specifying the percentage of construction finance that applies to residential housing, as CBL does not report them.
LISGIS collects data regarding national housing, population census, and household income and expenditure which is disaggregated by gender. This data is published online; however, since 2008, LISGIS has not conducted a national housing and population census. Furthermore, since 2016, LISGIS has not collected new household income and expenditure data.
Also, LBDI collects and disaggregates its data by gender. It collects data on the number of residential mortgages, number and value of residential mortgages outstanding, the lowest and highest interest rates, maximum residential mortgage loan to value ratio and mortgage terms. The challenge with LBDI data is that it is not published publicly online, but it can be obtained on request.
Green Applications for Affordable Housing
Significant effort is being made to improve access to renewable energy. The Mount Coffee Hydro is the main power source and has added 88MW to the national grid to supply approximately one million people with stable electricity.[1] Also, the Rural Energy Strategy and Master Plan of Liberia promotes renewable energy technologies as a key tool to achieve access to sustainable energy by 2030.[2] Furthermore, there are products available on the market to enable households to seek green living standards in their homes. In 2022, President George M. Weah issued Executive Order #107 suspending import tariffs on off-grid solar lighting appliances, equipment, and system components as well as other systems directly related to renewable energy development.[3]
Liberia’s population with access to electricity in 2020 was 27.5%.[4] Though access to safe drinking water has improved nationally, less than 3% of the population has access to piped water and less than 17% has improved sanitation.[5] Liberia does not have a green building council, green building standards, green mortgages, green housing finance or green microfinance providers.
[1] Financial Times (n.d.). Mount Coffee hydropower plant: Raised from the ruins. https://www.ft.com/partnercontent/voith/mount-coffee-hydropower-plant-raised-from-the-ruins.html (Accessed 31 July 2022). Pg. 1.
[2] Rural and Renewable Energy Agency (2018). Rural Energy Strategy and Master Plan for Liberia 2030. https://gestoenergy.com/wp-content/uploads/2018/04/LIBERIA-RURAL-ENERGY-STRATEGY-AND-MASTER-PLAN.pdf (Accessed 2 August 2022). Pg. 8.
[3] ESI Africa (2022). Liberia suspends import tariffs on off-grid solar products. https://www.esi-africa.com/solar/liberia-suspends-import-tariffs-on-off-grid-solar-products/ (Accessed 31 July 2022). Pg. 1.
[4] World Bank (2020), Access to electricity-Liberia. https://data.worldbank.org/indicator/EG.ELC.ACCS.ZS?locations=LR (Accessed 31 July 2022). Pg. 1.
[5] Liberia Water and Sewer Corporation (2019). Resettlement Policy Framework.https://documents1.worldbank.org/curated/ru/434861550629914423/Resettlement-Policy-Framework.pdf (Accessed 2 August 2022). Pg. 9.
Websites
Central Bank of Liberia https://www.cbl.org.lr/
Liberian Bank for Development and Investment https://lbdi.net/about-us.php
Liberia Institute of Statistics and Geo Information Services https://www.lisgis.gov.lr/
Additional Sources
Liberia Revenue Authority (2021). Annual Report 2021. https://revenue.lra.gov.lr/wp-content/uploads/2022/01/Liberia-Revenue-Authority-LRA-FY2020_2021-Annual-Report-Published-Dec.-31-2021.pdf (Accessed 18 August 2022).
Republic of Liberia (2012). National Disaster Management Policy 2012. https://www.refworld.org/pdfid/5b3f3cb57.pdf (Accessed 18 August 2022).
UN-Habitat (2020). Diagnosis Note for Liberia. https://unhabitat.org/sites/default/files/2021/03/diagnosis_note_for_liberia_02022021-final_1.pdf (Accessed 18 August 2022).
Republic of Liberia (2010). The Liberian Commercial Code of 2010. https://www.moci.gov.lr/doc/Commercial%20Code%20-%20Title%207%20-%20Liberian%20Code%20of%20Laws%20Revised.pdf (Accessed 11 August 2022).
Republic of Liberia (1986). Liberia’s constitution of 1986. https://www.constituteproject.org/constitution/Liberia_1986.pdf?lang=en (Accessed 12 August 2022). Pg. 7.
Republic of Liberia (1973). Domestic Relations Law. https://www.africa-laws.org/Liberia/Family%20law/Domestic%20Relations%20Law.pdf (Accessed 12 August 2022). Pg. 9.
Republic of Liberia (2016). Liberia Land Authority Act. https://www.clientearth.org/media/vf5jl02z/act-2009-the-liberia-land-authority-act-ext-fr.pdf (Accessed 11 August 2022). Pg. 17.
Republic of Liberia (2018). Land Rights Act 2018. https://ilo.org/dyn/natlex/docs/ELECTRONIC/108719/134558/F-880822474/LBR108719.pdf , (Accessed 11 August 2022). Pg (-).
Republic of Liberia (2014). Act Against Criminal Conveyance of Land 2014. http://extwprlegs1.fao.org/docs/pdf/lbr146964.pdf (Accessed 18 August 2022).
ALCBFund (2016). Understanding African Capital Markets, Cameroon, DRC, Liberia and Sierra Leone. https://uploads-ssl.webflow.com/5f0f1ce96a1f6869277ccbbd/5f5b9237059da44c74d86303_FINAL_Liberia-DRC-Cameroon-Sierra-Leone-Capital-Markets.pdf (Accessed 25 August 2022).
Republic of Liberia (1958). Zoning Act of March 21, 1958. Pg. 419.
Centre for Affordable Housing Finance in Africa (2021). CAHF 2021 Yearbook. https://housingfinanceafrica.org/app/uploads/2021/11/2021_CAHF-yearbook-final-compressed-1.pdf (Accessed 7 August 2022).
