Housing Finance in Mali

Overview

This profile is also available in French here.

To download a pdf full version of the 2022 Mali country profile, click here.

Overall, the economic outlook for 2022 and 2023 is mixed, despite 2021’s positive GDP growth of 3.2%. Agriculture (2.4%) and services (5.3%) were the main supply side drivers of growth. However, due to economic sanctions and the impact of the Ukraine-Russia war, the GDP is expected to fall to an estimated 2.1% in 2022. Inflation in the country is expected to exceed 7% in 2022 but to fall to 3.1% in 2023 as a result of an economic recovery led by cotton, grain, and gold production, as well as favourable global prices for these products.

Mali is one of West Africa’s biggest countries (over 1.24 million km2), with a population of 21.58 million in 2022. Approximately 45% of the Malian population lives in cities, with one of the greatest possible urbanisation rates in Africa, estimated at 4.75% in 2020. Rapid urbanisation, poverty, and population growth are putting an enormous strain on housing supply and demand, resulting in the expansion of slums.

COVID-19 continues to have a negative impact on employment, income, and economic activity in the country, limiting some households’ ability to bear the burdens of daily life. The pandemic had a direct impact on less than 1% of jobs in March 2021. However, more than 10% of household activities and incomes were indirectly impacted, resulting in a negative impact on household well-being. Food, transportation, education, and housing were among the most affected categories of spending. Furthermore, the estimated 6.5% unemployment rate added to the difficulty of obtaining housing, particularly among women (9.6%) compared to men (4.3%).

Seasonal floods have an impact on the development of the national housing stock as well as increasing food security challenges and slowing progress in the fight against poverty among vulnerable populations. The recent destruction of thousands of homes has severely reduced the number of households able to find shelter. The government has made efforts to address this by making climate resilience a priority in its Strategic Framework for Economic Recovery and Sustainable Development (2019–2023).

Building material prices continue to rise year after year; for example, the price of a 50 kg bag of cement rose from 4 500 FCFA (US$7.14) in 2020 to 5 500 FCFA (US$8.72) in 2021. Furthermore, rising material costs imply rising construction costs. As a result, in 2022, the cheapest newly built house in an urban area by a real estate developer would cost 15 million FCFA (US$23,807). Given the country’s current macroeconomic conditions, the “cheapest” house would be out of reach for at least half of the population, particularly the more than 40% who live below the national poverty line.

One of the major challenges in Mali’s housing sector is the issue of credit affordability for low-income households. A World Bank report claims that less than one-third of agricultural households have access to credit. Only about 5% of them, compared to less than 1% of women, have access to mortgages. Given the importance of agriculture to the national economy, this suggests that households are being excluded from financing channels in general and mortgages in particular. Furthermore, the local mortgage market is still in its infancy. According to the FGHM, there will be approximately 277 outstanding residential mortgages in 2022, totaling approximately 7,225 million FCFA (US$11.47 million). According to the most recent BCEAO statistics, the average

Furthermore, despite the context of internal and external economic challenges, housing is a profitable asset. Maintaining a peaceful and stable political, military, and economic environment is still the most important thing that needs to happen for more private sector investment and intervention, which is needed to take advantage of the many opportunities in the private sector.

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


Each year, CAHF publishes its Housing Finance in Africa Yearbook. The profile above is from the 2022 edition, which has up-to-date profiles for 55 African countries.

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