Housing Finance in Mozambique

Overview

This profile is also available in French here.

To download a pdf version of the full 2021 Mozambique country profile in English click here,

Or in Portuguese click here.

Mozambique’s soaring urban population has been accompanied by limited affordability of decent housing and an infrastructure deficit for low-income households. To accommodate population growth, approximately two million new housing units are required, with the need increasing at a rate of 2.8% a year. The scale of the need has been exacerbated by recurrent cyclones and severe flooding in coastal areas. Destruction of housing by tropical cyclones Idai and Kenneth has led to an increasing focus on climate-proofing existing and new housing stock, including the use of quality building materials, enhancing roof structures, elevating land in low lying areas and deepening storm water drainage canals. More than 70% of households have no access to basic sanitation or electricity, and approximately one quarter are without running water. The demand for housing is especially growing in resource extracting cities where economic activities are concentrated. Approximately 80% of the urban population or 1.8 million urban households live in overcrowded informal settlements with poor living conditions.

The Northern Province of Cabo Delgado has been conflict-ridden since 2017. Militant attacks have put massive foreign investment and natural gas exploration, which the country depends on, at risk. Southern African Development Community (SADC) states and Rwandan troops have been deployed in an attempt to stabilise the country. Approximately 1.3 million people, including 635 0006 internally displaced persons (IDPs), need of assistance. Tens of thousands of IDPs are living in “structurally damaged homes” or overcrowded emergency resettlement shelters with little sanitation services. A Humanitarian Response Plan identified that the bulk of financing needs are required for food, at a cost of MT8.6 billion (US$136 million), and shelter (new or reconstructed) MT1.7 billion (US$28 million). Displaced persons are expected to be resettled into new villages, which requires government to effectively allocate new land for housing.

 

[1] Arantes, E. (2019). Poverty rate soared in Mozambique – O País newspaper. 21 October 2019. Club of Mozambique. https://clubofmozambique.com/news/poverty-rate-soared-in-mozambique-o-pais-145005/  (Accessed 1 August 2020).

[2] National Statistics Institute. (2020). http://www.ine.gov.mz (Acessedo 30 July de 2020).

[3] Bank of Mozambique. (2020). Financial Stability Report. 30 June 2020. http://www.bancomoc.mz/fm_pgTab1.aspx?id=379 (Accessed 28 July 2020). Pg.14.

[4] Allen, C. and Johnsen, V. (2008). Mozambique and the constraints of the housing market development and financing. https://housingfinanceafrica.org/app/uploads/Moz_Portuguese.pdf (Accessed 29 July 2020). Pg. 24.

[5] Allen, C. and Johnsen, V. (2008). Mozambique and the constraints of the housing market development and financing. https://housingfinanceafrica.org/app/uploads/Moz_Portuguese.pdf (Accessed 29 July 2020). Pg. 1 and pg. 24.

[6] Fund for Housing Promotion. (2020). Official launch of project Renascer.23 March 2020.https://ffh.gov.mz/noticias-eventos/lancamento-oficial-do-projecto-renascer (Accessed 17 August 2020).

 

Find out more information on the housing finance sector of Mozambique, 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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