Housing Finance in Madagascar


This profile is also available in French here.

To download a pdf version of the full 2020 Madagascar country profile, click here.

Madagascar is an island nation located off the coast of southern Africa, and east of Mozambique.  It is home to 26 969 307 people. Despite an abundance of natural resources, it is classified as one of the poorest countries in Africa with a poverty rate of 75.2 percent, mainly due to political impact. Its export economy is driven largely by the agricultural sector, which is a significant employer. Madagascar is one of the countries most vulnerable to the impacts of climate change on the African continent.

Madagascar’s finance and banking sector grew by 4.2 percent in 2019 and  real estate credit increased which could result in better access to financial services by the population.  The government launched the national strategy for financial inclusion 2018-2022 which aims to increase access to financial services to about 45percent by 2022. Microfinance institutions have been instrumental in providing financial services to poorer households. A large number of households are excluded from the financial sector altogether. However mobile money and microcredit are rapidly increasing levels of financial inclusion.

The population of Madagascar is mostly rural with about 65 percent living in the rural areas. Urbanisation is growing and the urban population is expected to increase by about 50percent by 2036. Formal housing is largely unaffordable. The demand for housing is estimated to be about 1 730 000 with the shortages resulting in the soaring price of the current housing stock. An estimated 85percent of the total population live in informal settlements. There is a commitment by the state to construct social housing in Madagascar’s major regions. This is to be implemented through a public-private partnership model.

Residential housing development is focused on the high-income households. Renting or purchasing a house is considered as elitist. The time and costs associated with accessing construction permits, registering a property and inefficient land administration systems hinder new property developments.

The country’s policy agenda is focused on promoting inclusive growth, addressing land tenure problems and the inefficient financial system, improving sanitation infrastructure, inflation stabilisation and responding to the impacts of adverse weather conditions. Although housing is not an explicit priority, addressing the aforementioned factors may potentially and positively drive housing delivery and affordability

Find out more information on the housing finance sector of Madagascar, including key stakeholders, important policies and housing affordability:

Each year, CAHF publishes its Housing Finance in Africa Yearbook. The profile above is from the 2020 edition, which has up-to-date profiles for 55 African countries.

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