Housing Finance in Madagascar


This profile is also available in French here.

To download a pdf version of the full 2021 Madagascar country profile, click here.

Madagascar is an island country located in the Indian Ocean off the coast of southern Africa. It is the fifth-largest island in the world, with a landmass of 587,000 km2, and has a population of approximately 27.8 million inhabitants. In 2020, it was estimated that up to 85% of the total population 2020 lived in informal settlements, and in the capital – Antananarivo – informal settlements house up to 72% of the urban population. Unchecked urban growth has generated a host of social problems, from sub-standard housing to inadequate sanitation systems. Housing demand is estimated to be almost 1.8 million units, which has not been met, leading to huge price increases in the available housing stock. This is likely to continue unless the housing sector is more rigorously regulated to address the scarcity of land, as well as a scarcity of housing and basic services. This should include close monitoring of construction permit agencies against corruption, as well as the development of innovative financial instruments – including housing subsidies, informal settlement upgrades, pro-poor grants, or longer loan terms – to enable poor households to access decent housing.

Madagascar has been greatly affected by decades of climate change, resource degradation, and political instability. In these conditions, food insecurity in Madagascar is at 80%, and greater numbers of people are moving to cities in the hope of accessing food, shelter, and income. Madagascar has a rapidly growing population that is set to increase from 24.2 million in 2015 to 36 million by 2030, according to United Nations (UN) figures. The population is still mainly rural (65%), with great disparities between rural and urban areas, as well as different regions – southern regions are generally much poorer.

According to the National Development Plan (2020), the urban population stands at around 35% and is estimated to grow to 50% by 2036. Furthermore, Madagascar has a precarious labor market, with 86% of employees holding informal jobs in 2012. Up to 65% of the population are directly or indirectly dependent on agriculture and forestry, most of them working in subsistence agriculture, with crops of rice, maize, and manioc. Despite having considerable natural resources, Madagascar has been classified as one of the poorest countries in Africa by the World Bank, with an extreme poverty rate of 75.2%.

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 2021 edition, which has up-to-date profiles for 55 African countries.

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