Housing Finance in Niger
Overview
This profile is also available in French here.
To download a pdf full version of the 2020 Niger country profile, click here.
Niger is one of the least developed countries in the world with extreme poverty at 41.4percent affecting about 9.5 million people. The Sahelian country is rich in mineral resources (limestone and gypsum) used in the manufacture of cement. Niger’s economy is mostly driven by agriculture which is 40 percent of its gross domestic product.
Niger whose population grew by 3.8 in 2020 has a population of about 24 million with majority living in rural areas. Access to basic urban infrastructure including roads, electricity, drinking water are lagging making the living conditions in urban areas a challenge. Urban growth and the expansion of cities has often taken place without urban planning. An estimated 70 percent of the urban population is living in slums. Traditional constructions known as terra cotta or banco (clay and straw) houses are in the majority throughout the country.
Niger has 14 commercial banks including four branches, four financial institutions, three financial and consulting institutions and 37 microfinance institutions. The banking sector which started about 10 years ago is fairly new and its penetration is still low (0.6 percent). Only 1.73 percent of urban households can access affordable housing. Less than five percent of the population uses financial products and only 15.5 percent of adults over 15 have a bank account, compared with an average of 42.6 percent in Sub-Saharan Africa.
Niger’s wealth in mineral resources limestone and gypsum offers opportunities in the construction industry. More so, affordable housing for both rental and purchase is in high demand in Niger. Partnerships between commercial banks or microfinance institutions and workers’ unions are interesting opportunities, such as the partnership between Ecobank and the National Union of Teachers of Niger to finance an affordable housing development programme for teachers.
Find out more information on the housing finance sector of Niger, including key stakeholders, important policies and housing affordability:
- Macroeconomic Overview
- Access to Finance
- Affordability
- Housing Supply
- Property Markets
- Policy and Regulation
- Opportunities
- Availability of data on housing finance
- COVID-19 response
- Websites
Each year, CAHF publishes its Housing Finance in Africa Yearbook. The profile above is from the 20202 edition, which has up-to-date profiles for 55 African countries.
Download yearbookNiger
Macroeconomic Overview
Niger, which is a Sahelian country, is one of the least developed countries in the world. In 2018, it ranked 189 in the Human Development Index.[1] Despite progress made in recent years and the wealth of its subsoil, extreme poverty remains high at 41.4 percent in 2019, affecting more than 9.5 million people.[2] Access to basic services is a challenge, with a growing population (3.8 percent a year) of 24 million in 2020, mostly young (50 percent under 15 years of age), and a fertility rate of 6.7 children per woman.[3]
In addition, Niger hosts a flow of refugees due to regional conflicts (Nigeria, Libya and Mali). At the end of 2019, the Office of the United Nations High Commissioner for Refugees (UNHCR) counted 441 900 people affected, an increase of 14 percent from 2018.[4] In recent years, the security situation has deteriorated, particularly in border areas. The government has halted the spread of the conflict, however, deteriorating security does pose a risk to economic activities.
The political context is relatively stable since the re-election of the President Mahamadou Issoufou in 2016. The next presidential and legislative elections are due in December 2020,[5] preceded by municipal and regional elections.
Despite various obstacles,[6] Niger’s economy is expected to grow by 6.3 percent in 2019. Its economy is mainly driven by agriculture (40 percent of gross domestic product (GDP)[7]). Between 2018 and 2019, the budget deficit narrowed as a result of high imports related to major infrastructure projects for the African Union summit. In January 2020,[8] the International Monetary Fund (IMF) concluded that “economic activity is expected to evolve favourably, with an average annual growth of over 7 percent over the next five years”, including major structural projects such as the Kandadji[9] dam and the construction of the oil pipeline.[10] The economic growth rate for 2020 was estimated before the pandemic at 5.33 percent.[11] According to IMF projections, growth is expected to fall to one percent of GDP in 2020.[12] Exports are slowing and major projects are experiencing delays. The budget deficit is projected to increase to five percent of GDP, due to lack of revenues, lower investment, greater needs and spending on healthcare, social protection and business support. The slowdown in the Chinese economy has also impacted Niger with reduced demand for raw materials. Stocks of some food products from China have been sharply reduced, leading to higher prices.[13]
Mobilisation of the international community should help cushion the effects of the crisis. The IMF has approved the disbursement of about FCFA 66.8 billion (USD114.49 million) to urgently meet the balance of payments needs caused by the pandemic.[14] The World Bank has approved several means of financing[15] for a total of CFA271 billion FCFA (US$464 million).[16] The European Union has allocated CFA14.7 billion (US$25 million) “to cover basic needs, particularly in terms of housing”.[17] Following the example of the development finance institutions, private banks have given CFA100 million (UD$171 145).[18] This financing will make it possible to support the development of the country and the Nigerien economy, via companies.
[1] UNDP (2019). Human Development Index Report 2019. United Nations Development Programme. http://hdr.undp.org/sites/default/files/hdr_2019_overview_-_french.pdf (Accessed 30 July 2020). Pg. 44.
[2] World Bank (2020). The World Bank in Niger. Overview. Context and Strategy. 10 April 2020. https://www.banquemondiale.org/fr/country/niger/overview#1 (Accessed 29 July 2020).
[3] UNFPA. World Population Dashboard Niger. United Nations Population Fund. https://www.unfpa.org/data/world-population/NE (Accessed 31 July 2020).
[4] These are refugees and asylum seekers. United Nations High Commissioner for Refugees (2019). https://reporting.unhcr.org/node/4637?y=2019#year (Accessed on 30 July 2020).
[5] Niamey and the 2 days (2020). Local elections could be held on 13 December. 23 July 2020. https://www.niameyetles2jours.com/la-gestion-publique/politique/2307-5755-les-elections-locales-pourraient-se-tenir-le-13-decembre-prochain (Accessed on 30 July 2020).
[6] Unfavourable raw material prices, insecurity are a major factor.
[7] World Bank (2020). The World Bank in Niger. Overview. Background and Strategy. 10 April 2020. https://www.banquemondiale.org/fr/country/niger/overview#1 (Accessed 29 July 2020).
[8] IMF (2020). Country Report No. 20/7. January 2020. https://www.elibrary.imf.org/doc/IMF002/28629-9781513526270/28629-9781513526270/Other_formats/Source_PDF/28629-9781513526294.pdf (Accessed 30 July 2020). Pg. 6.
[9] Takouleu J.M. (2020). Niger: IDA provides USD150 million for the Kandadji water and electricity programme. 30 June 2020. Afrik 21. https://www.afrik21.africa/en/niger-ida-provides-150-million-for-the-kandadji-water-and-electricity-programme/ (Accessed 31 July 2020).
[10] Vidjingninou, F. (2020). Infrastructure: Niger-Benin, the growth pipeline. 19 June 2020. Jeune Afrique. https://www.jeuneafrique.com/mag/989127/economie/infrastructure-niger-benin-le-pipeline-de-la-croissance-5-8/ (Accessed 10 August 2020).
[11] UN Habitat (2015). Habitat III National Report. December 2015. http://habitat3.org/wp-content/uploads/Niger_NationalReport.pdf (Accessed 30 July 2020). Pg. 4.
[12] IMF (2020). Country Report No. 20/128. April 2020. https://www.imf.org/~/media/Files/Publications/CR/2020/English/1NEREA2020002.ashx (Accessed 30 July 2020). Pg. 2.
[13] Evans. D. and Oven. M. (2020). The most precarious countries are the most vulnerable in Covid-19. 18 March 2020. The Conversation. https://theconversation.com/les-pays-les-plus-precaires-sont-les-plus-vulnerables-au-covid-19-133956 (Accessed 29 July 2020).
[14] IMF (2020). Country Report No. 20/128. April 2020. https://www.imf.org/~/media/Files/Publications/CR/2020/English/1NEREA2020002.ashx (Accessed 30 July 2020). Pg. 2.
[15] World Bank (2020). Press release. 10 April 2020 https://www.banquemondiale.org/fr/news/press-release/2020/04/15/niger-to-receive-13-95-million-for-covid-19-response (Accessed 30 July 2020).
[16] The funding allocated is US$13.95 million, US$100 million to strengthen local government capacity and management of the extractive sector, US$100 million to accelerate digital transformation and US$250 million to mitigate the impact of the pandemic. World Bank (2020). Press Release No 2021/025/AF. 6 August 2020. https://www.banquemondiale.org/fr/news/press-release/2020/08/06/niger-world-bank-approves-250-million-to-boost-long-term-growth (Accessed 17 August 2020).
Findev Gateway (2020). Niger: The World Bank grants USD100 million for its digital transformation. 15 July 2020. https://www.findevgateway.org/fr/actualites/niger-la-banque-mondiale-octroie-100-millions-pour-sa-transformation-digitale (Accessed on 17 August 2020).
World Bank (2020). Press Release No: 2021/021/AFR. 3 August 2020. https://www.banquemondiale.org/fr/news/press-release/2020/08/03/niger-100-million-to-improve-decentralized-services-and-management-of-the-extractive-sector-during-the-covid-19-crisis (Accessed 17 August 2020).
[17] European Union (2020). Humanitarian needs in Niger: EU support of €22.5 million (FCFA 14.7 billion). 4 August 2020. https://eeas.europa.eu/delegations/niger/83749/besoins-humanitaires-au-niger-soutien-de-225-millions-d%E2%80%99euros-147-milliards-f-cfa-de-l%E2%80%99ue_fr (Accessed 19 August).
[18] Banque Atlantique (2020). Niger: BIA and Banque Atlantique participate in the solidarity fund for the fight against Covid-19 to the tune of FCFA 100 million.29 April 2020. https://www.banqueatlantique.net/niger-bia-niger-et-banque-atlantique-participent-au-fonds-de-solidarite-pour-la-lutte-contre-le-covid-19-a-hauteur-de-100-millions-de-fcfa/ (Accessed 31 July 2020).
Access to Finance
The Central Bank of West African States (BCEAO) regulates Niger’s formal financial sector. To mitigate the impact of the pandemic on the banking system and the financing of economic activity, the BCEAO[1] has taken a series of measures, some of which are specific to businesses and microfinance institutions, such as extending maturities to three months.[2]
Niger has 14 commercial banks[3] including four branches, four financial institutions, three financial and consulting[4] institutions and 37 microfinance institutions.[5] The banking sector is relatively recent (10 years old) and its penetration is still low (0.6 percent). [6]
The opening in 2018 of the Banque de l’Habitat du Niger (BHN) made it possible to propose a specific financial offering for the housing sector. The BHN’s mission is to finance real estate development, and the production and improvement of social housing.[7] It replaces the Crédit du Niger, which closed in 2010, and is in line with the National Housing Policy (1998) with the creation (in 2017) of the National Housing Fund (FNH).[8] The BHN opened a third regional branch at the end of 2019.[9] The bank offers preferential interest rates to households and developers, with an average base rate of nine percent and a maximum rate of 13.5 percent in the second half of 2019[10] (compared with 17.7 percent for some commercial banks). The FNH interacts on interest rates and mortgage maturity terms, leading to a reduction in interest rates and an increase in maturities.
Four major banks[11] dominate with 67 percent of deposits.[12] Following the BCEAO’s pandemic provisions, some commercial banks are offering maturity extensions to individuals and businesses.[13]
Commercial banks offer housing loans and establish partnerships with developers.[14] They offer “housing financed up to 100 percent with no upfront financing options”[15] and repayment terms ranging from 10 years[16] (Ecobank) to 30 years (BHN). The mortgage payment in relation to household income varies from CFA40 000 to CFA100 000 (US$68.4 to US$171).[17] The Caisse Régionale de Refinancement Hypothécaire de l’UEMOA (CRRH) should enable banks to offer more loans for affordable housing following CFA10.3 billion (US$17.6 million) financing from the African Development Bank (AfDB).[18]
Housing financing remains insufficient with just under CFA20 billion in 2017 (US$3.4 million), which represents four percent of total credit,[19] and the banking sector remains weak. Only 1.73 percent of urban households are able to access affordable housing.[20] Less than five percent of the population uses financial products and only 15.5 percent of adults over 15 have a bank account, compared with an average of 42.6 percent in Sub-Saharan Africa.[21]
[1] BCEAO (2020). Covid-19 device. https://www.bceao.int/fr/Covid-19 (Accessed 31 July 2020).
[2] BCEAO (2020). Opinion No 008-04-2020 relating to measures in favor of Microfinance Institutions affected by the Covid-19 pandemic. 28 April 2020. https://www.bceao.int/fr/reglementations/avis-ndeg-008-04-2020-relatif-aux-mesures-en-faveur-des-institutions-de (Accessed 31 July 2020).
[3] BCEAO (2020). Institutional Landscape. https://www.bceao.int/fr/content/paysage-bancaire (Accessed 31 July 2020).
[4] BCEAO (2018). Directory of WAEMU Banks and Financial Institutions 2018. https://www.bceao.int/sites/default/files/2019-05/Annuaire%20des%20banques%20et%20%C3%A9tablissements%20financiers%20de%20l%27UMOA%202018_0.pdf (Accessed 31 July 2020). Pg. 179.
[5] BCEAO (2019). Main WAEMU FDS indicators as of December 2019. https://www.bceao.int/sites/default/files/2020-05/BCEAO%20-%20Indicateurs%20SFD%20UMOA%20au%2031%20d%C3%A9cembre%202019.pdf (Accessed 31 July 2020).
[6] Affordable Housing Institute. Inventory of Affordable Housing Places in the WAEMU. Unpublished. (Accessed 31 July 2020).
[7] Africa Tribune (2018). Niger: a housing bank to solve the housing crisis. 15 December 2018. https://afrique.latribune.fr/finances/banques-assurances/2018-12-15/niger-une-banque-de-l-habitat-pour-resorber-la-crise-du-logement-801240.html (Accessed 31 July 2020).
[8] Doh. G. (2017). Soon a National Housing Fund to meet the need for housing. 6 December 2017.Niamey and the 2 days. https://www.niameyetles2jours.com/la-gestion-publique/social/0612-1650-bientot-un-fonds-national-de-l-habitat-pour-faire-face-au-besoin-de-logement (Accessed 31 July 2020).
[9] Banque de l’Habitat du Niger. Products and Services. https://www.bhn.ne/# (Accessed 31 July 2020).
[10] BCEAO (2019). Debtor conditions applied by WAEMU credit institutions for the second half of 2019. https://www.bceao.int/sites/default/files/2020-03/CONDITIONS%20DE%20BANQUE%20DECEMBRE%202019.pdf (Accessed 31 July 2020). Pg. 9.
[11] Société Nigérienne de Banque (Sonibank), Bank of Africa, Ecobank and Banque Atlantique.
[12] Confidential Africa (2018). Niger: A bank match at 4. 26 September 2018. http://confidentielafrique.com/banques/niger-match-bancaire-a-4-exclusif/ (Accessed 31 July 2020).
[13] Banque Atlantique (2020). Covid-19 provisions. Extension of maturities. 14 May 2020. https://www.banqueatlantique.net/dispositions-covid-19-banque-atlantique-prend-des-mesures-daccompagnement-pour-ses-clients/ (Accessed 31 July 2020).
[14] Development of the real estate business (DB immo), management of the operation. http://sites.nova-technologies.com/dbimmoniger.com/produits.html (Accessed 17 August 2020).
[15] Banque Atlantique. Individuals Project Finance. https://www.banqueatlantique.net/particuliers/credit-immobilier/ (Accessed 17 August 2020).
[16] Ecobank. Property loan section. https://ecobank.com/ne/personal-banking/products-services/loans (Accessed 17 August 2020).
[17] Household survey and interview with a commercial bank (sources wish to remain anonymous).
[18] African Development Bank Group. The African Development Bank is providing a €15 million financing facility to support social housing in the WAEMU region. 20 March 2020. http://bit.ly/AFDBnews (Accessed 29 July 2020).
[19] This is Niger (2018). Launch of the activities of the Banque de l’Habitat du Niger https://www.iciniger.com/lancement-des-activites-de-la-banque-de-lhabitat-du-niger-bhn/ (Accessed 18 August 2020).
[20] CRRH-UEMOA (2018). Activity Report 2018. http://crrhuemoa.org/wp-content/uploads/2019/07/RAPPORT-DACTIVITES_2018.pdf (Accessed 18 August 2020). Pg. 10.
[21] World Bank Group (2018) Global Findex Database. The Little Data Book on Financial Inclusion 2018. https://openknowledge.worldbank.org/bitstream/handle/10986/29654/LDB-FinInclusion2018.pdf. Pg 117 (Accessed 31 July 2020).
Affordability
A recent survey in West African Economic and Monetary Union WAEMU (UEMOA)[1] indicates that Niger is the country with the highest number of poor people, with 75.5 percent of the population living on less than CFA1 798 (US$3) a day, and “the average annual amount spent by a Nigerien about CFA259 000 (US$443)”.[2]
These figures confirm that most Nigeriens do not have sufficient resources to acquire property or access a mortgage. Housing supply does not meet the financial capacities of the majority of the population. The smallest social economic unit produced by a developer in Niamey, 35m2 (one bedroom, one living room, one kitchen, one bathroom, one terrace, one corridor) on a 400m² plot costs about CFA7 000 000 (US$11 980).
Loan conditions (loan size, minimum income) and interest rates that vary from eight to 15 percent[3] make the cost of borrowing too high. Monthly mortgage payments impact a maximum of one-third of household income. The individual annual salary required to access a formal house at current rates is CFA5 million (US$8 600), which only 20 000 households would be able to access.[4] In obtaining loans, Niger has considerably increased its ranking to 48/190, a 40 percent increase over 2019.
[1] WAEMU (2020). Communication note on the results of the First Harmonised Survey on Household Living Conditions. July 2020. http://www.uemoa.int/sites/default/files/bibliotheque/projet_commucationresultats_ehcvm_juin2020_13072020_obs.pdf (Accessed 30 July 2020).
[2] Mawulolo, A. (2020). Three out of four inhabitants live below the poverty line in Niger. 24 July 2020. Niamey and the 2 days. https://www.niameyetles2jours.com/la-gestion-publique/gestion-publique/2407-5763-trois-habitants-sur-quatre-vivent-sous-le-seuil-de-pauvrete-au-niger (Accessed 29 July 2020).
[3] BCEAO (2019). Debtor conditions applied by WAEMU credit institutions for the second half of 2019. https://www.bceao.int/sites/default/files/2020-03/CONDITIONS%20DE%20BANQUE%20DECEMBRE%202019.pdf (Accessed 17 August 2020).
[4] Affordable Housing Institute. State of Affordable Housing Places in the WAEMU. Unpublished. (Accessed 31 July 2020).
Housing Supply
Urban growth (16.6 percent of the population is urban) and the expansion of cities has often taken place without urban planning, with an estimated 70 percent of the urban population living in slums. The last census indicated that the housing stock represents about 2 500 000 dwellings, 17.9 percent of which are in urban areas and 82.1 percent in rural areas.[1] Housing types are grouped in three categories. Traditional constructions known as terra cotta or banco (clay and straw) houses are in the majority throughout the country. They account for 54.7 percent of construction in urban areas, followed by villas (15.7 percent) and single-family homes (14.5 percent) (one- or two-room dwellings). This is also the case in rural areas (64.5 percent), followed by huts (29.5 percent). Banco is a local material that is abundant and affordable, and the techniques for using it are well known. Then there are the precarious[2] traditional constructions known as semi-hard houses (clay, plaster and cement). This accounts for 28.8 percent of housing. Finally, there are modern constructions (cement, concrete, and stone) such as villas, buildings and single-family homes, which account for six percent of the country’s housing.
International stakeholders, together with the government have produced, in 2019 and 2020, emergency housing (13 000 plots and 5 700 housing units planned[3], of which 4 000 have already been built) for the most vulnerable rural populations in the regions of Diffa, Tillabéri and Tahoua.[4]
In 2017, Niger adopted an Economic and Social Development Plan (PDES)[5] with the objective of building 25 000 homes in five years at an estimated cost of CFA64 billion (US$110 million).[6] As PDES[7] mentions, “Niger is lagging far behind in terms of urban infrastructure (roads, gutters, drinking water and electricity networks, etc.), making living conditions in urban areas very difficult”.
The Minister in charge of housing intervened in[8] June on the construction of the 25 000 social housing units, recalling that “the results obtained have not lived up to expectations”.[9] It was decided that a property developer would create 15 000 serviced plots of land, which would be fenced off and the roads upgraded. These plots will be paid for over seven years. The aim is to meet the needs of “15 000 applicants for social housing, the creation of several tens of thousands of temporary jobs, the revival of the activities of construction companies to mitigate the effects of the recession linked to the pandemic”.[10]
Niger has also signed contracts with private developers (7 550 housing units),[11] with bilateral cooperation. SONUCI is in charge of a programme of 557 housing units in the 5th District of Niamey. “We have signed a memorandum with a major Chinese construction company to build 25 000 housing units. The company will start with a tranche of 2 000 housing units because this requires a certain number of guarantees. These guarantees have been given by the housing bank and the African Solidarity Fund. Therefore, this will enable us to reach the 9 550 housing units.”
At the same time, the government decided to standardise the construction of housing estates throughout the territory and “from now on, no private person may build housing estates. They will now be developed on the initiative of the Ministry of Town Planning and Town Councils”.[12] In Niamey, for example, several projects, all led by stakeholders, are planning the construction of a university campus with 2 000 housing units;[13] [14]a residential housing estate; and residential and office buildings.[15] Only one project for the construction of 6 300 social housing units is listed under state ownership.[16] According to a recent study,[17] two projects have been signed as public private partnerships for the construction of 1 500 housing units in Niamey with two Ghanaian companies.[18] The state will make the land available.
[1] Republic of Niger (2012). General Census of Population and Housing (2012). Report on Habitat Characteristics and Living Environment. (Accessed 18 August 2020). Pg. 25.
[2] These are huts, tents, barracks, sheds, undeclared houses.
[3] UNHCR (July 2020). Humanitarian Subdivisions and Community Housing. https://reliefweb.int/sites/reliefweb.int/files/resources/77605.pdf (Accessed 27 July 2020).
[4] UNHCR. Report Niger Update June 2020 Tillabery and Tahoua Regions. https://data2.unhcr.org/en/documents/download/77049 (Accessed 29 July 2020). Pg. 2.
[5] Niger Reborn. Word from the President https://www.nigerrenaissant.org/fr/mot-du-president (Accessed 30 July 2020).
[6] Niger Reborn (2017). Priority Action Plan. September 2017 https://www.nigerrenaissant.org/sites/default/files/pdf/pdes-pap.pdf (Accessed 30 July 2020). Pg 5.
[7] Ibid. Pg 16.
[8]Council of Ministers (2020). Statement by the Council of Ministers. 26 June 2020. https://nigerinter.com/2020/06/conseil-des-ministres-du-vendredi-26-juin-2020/ (Accessed 19 August 2020).
[9] The public private partnership with national and international partners; the creation of a housing bank that will become operational in 2018; the creation of a housing fund housed in the bank; the provision of land to the partners on behalf of future buyers; the exemption of social housing construction operations.
[10] ActuNiger (2020). Social housing: catch-up operation for the Renaissance. 28 June 2020. https://www.actuniger.com/societe/16353-logements-sociaux-operation-rattrapage-pour-la-renaissance.html (Accessed 19 August 2020).
[11] Niger Diaspora (2018). Interview with the Minister of Domains, Town Planning and Housing, Mr Wazizi Maman. https://nigerdiaspora.net/index.php/politique-niger/5232-rencontre-d-echanges-entre-le-gouvernement-et-la-secretaire-generale-de-l-onu-chargee-des-questions-de-nutrition-le-gouvernement-du-niger-s-engage-a-investir-dans-la-nutrition-a-travers-une-politique (Accessed 19 August 2020).
[12] Gaingne, S. (2020). Subdivisions in Niger now entrusted to the Ministry of Urban Planning and Town Councils. Niamey and the 2 days. 13 November 2018. https://www.niameyetles2jours.com/la-gestion-publique/gouvernance-economique/1311-3104-les-lotissements-au-niger-confies-dorenavant-au-ministere-de-l-urbanisme-et-aux-mairies (Accessed 31 July 2020).
[13] Niger Reborn. Construction of a private university campus https://www.nigerrenaissant.org/fr/projets-investissement/construction-dun-campus-universitaire-prive-niamey (Accessed 31 July 2020).
[14] Niger Reborn. Project to create a residential city. https://www.nigerrenaissant.org/fr/projets-investissement/projet-de-creation-dune-cite-residentielle (Accessed 31 July 2020).
[15] Niger Reborn. Creation of a building in downtown Niamey. https://www.nigerrenaissant.org/fr/projets-investissement/creation-dimmeuble-au-centre-ville-de-niamey (Accessed 31 July 2020).
[16] Niger Reborn. Construction of social housing. https://www.nigerrenaissant.org/fr/projets-investissement/construction-de-logements-sociaux (Accessed 31 July 2020).
[17] Institute of National Statistics (2020). Study on the impact of public infrastructure projects on the Nigerien economy (March 2020). http://www.stat-niger.org/wp-content/uploads/2020/06/Rapport_Etude_impact_projets_infrastrutures_publiques.pdf (Accessed 19 August 2020). Pg. 69.
[18] Niamey and the 2 days (2019). 1,550 social housing units will soon be built in Niger at a total cost of FCFA 17.5 billion (8 May 2019). https://www.niameyetles2jours.com/l-economie/infrastructures/0805-3826-1-550-logements-sociaux-vont-bientot-etre-construits-au-niger-pour-un-cout-global-de-17-5-milliards-fcfa (Accessed 19 August 2020)
Property Markets
Despite administrative and land reform, it is still difficult to obtain land with title deeds. The administrative procedures remain costly and lengthy. Niger has also undertaken reforms to improve its business environment and created one-stop-shops for business registration. These efforts have improved the Doing Business ranking from 143 in 2019 to 132 out of 190 in 2020.[1] To register a property, four procedures and 13 days are required, and the cost is 7.4 percent of the value of the property. To obtain a building permit, 19 procedures and 98 days are required, and the cost is 32.4 percent of the value of the construction.
In urban areas, the majority of the population are tenants. Informal developers are the main providers of rental housing. Rents vary according to quality and location, ranging from CFA100 000 (US$171)[2] for the upper classes to CFA1.75 million (US$3 000) a month in Niamey for high-end villas. Rents in popular neighbourhoods vary between CFA35 000 (US$60)[3] and CFA100 000 (US$171). Room rents varies from CFA25 000 (US$43) to CFA60 000 (US$103) in urban centres. No institution offers large-scale rentals.
[1] World Bank (2020) Doing Business 2020. Niger Report of the Ease of Doing Business. https://francais.doingbusiness.org/fr/data/exploreeconomies/niger#DB_dwcp (Accessed 29 July 2020).
[2] Telephone interview with Idrissa Moussa, UNCDF representative in Niger, 31 July 2020.
[3] Telephone interview with Ndiaga Bane. Managing Director of DB Immo, 17 August 2020.
Policy and Regulation
The basis for housing is Law 98-54,[1] which enabled the adoption of the National Housing Policy in 1998. Its aim is “to give every family access to decent housing and to improve their living environment” by setting up financing mechanisms such as the FNH, the BHN, a mortgage guarantee fund and housing cooperatives with affordable financing.
In 2001, Law 2001-32 established the legal framework for interventions by the state and other actors in the structuring, occupation and use of the national territory and its resources.
In 2008, Law 2008-03[2] on urban planning and land development was adopted.
The constitution promulgated in 2010 specifies the determination of the fundamental principles of the housing policy[3] and the building code.[4]
In 2012, the law on public private partnership was promulgated. It favours the promotion of private interest in the development of housing and other urban infrastructure with long-term financing.
Law 2013-28 in 2013 was a major reform of urban regulation to facilitate the implementation of slum improvement projects and help make urbanisation an instrument of economic and social development.[5]
In 2017 and 2018, several laws were approved to govern the construction and housing sectors. Law 2017-20 updates the conditions for obtaining building permits and Ordinance 2017-05 for leasing. In June 2020, the Council of Ministers revised certain shortcomings of Law 2018-25.[6] It also adopted the draft decree on consultative bodies for urban planning and housing to involve all stakeholders in the decision-making process of participatory urban management. [7]
[1] Republic of Niger (2012). General Census of Population and Housing (2012). Report on Habitat Characteristics and Living Environment. (Accessed 18 August 2020). Pgs. 7-9.
[2] African Law. Niger. Framework Act on Town Planning and Land Development. Law No. 2008-03 of 30 April 2008 http://www.droit-afrique.com/upload/doc/niger/Niger-Loi-2008-03-urbanisme.pdf (Accessed 18 August 2020).
[3] Government of Niger. Constitution. Article 100. Paragraph 7. http://www.gouv.ne/docpdf/constitution.pdf (Accessed on 18 August 2020). Pg.11.
[4] Ibid. Pg. 11.
[5] Affordable Housing Institute. State of Affordable Housing Places in the WAEMU. Unpublished. (Accessed 31 July 2020).
[6] Council of Ministers (2020). Statement of the Council of Minister. 19 June 2020. https://www.niameyetles2jours.com/index.php/files/10/Communiques-conseil-ministre/103/COMMUNIQUE-DU-CONSEIL-DES-MINISTRES-DU-19-JUIN-2020.pdf (Accessed 31 July 2020). Pg. 4.
[7] Council of Ministers (2020). Statement of the Council of Ministers. 12 June 2020. https://www.niameyetles2jours.com/index.php/files/10/Communiques-conseil-ministre/102/COMMUNIQUE-DU-CONSEIL-DES-MINISTRES-DU-12-JUIN-2020.pdf (Accessed 31 July 2020). Pg.11.
Opportunities
Niger is rich in mineral resources (limestone, gypsum), which are used in the manufacture of cement. The Nigerien company Malbaza Cement Company plans to operate a new quarry that should “cover 80 percent of the country’s cement needs and reduce imports of this product”.[1]
Affordable housing (both rental and purchase) is in high demand. Partnerships between commercial banks or microfinance institutions and workers’ unions are interesting opportunities, such as the partnership between Ecobank and the National Union of Teachers of Niger to finance an affordable housing development programme for teachers.
[1] Gaingne, S. (2020). The Malbaza cement company will open a new limestone, sand and clay quarry in Niger. Niamey and the 2 days. 14 August 2020. https://www.niameyetles2jours.com/l-economie/mines/1408-5821-la-societe-malbaza-cement-compagny-va-ouvrir-une-nouvelle-carriere-de-calcaire-de-sable-et-d-argile-au-niger (Accessed 31 July 2020).
Availability of data on housing finance
The main national and regional organisations that collect and share economic, financial and legal data, some of which relate to housing finance, are BCEAO, West African Development Bank, AfDB, UEMOA, CRRH, the various government sites (Presidency, Renaissance Programme, Ministries), the BHN, the NSI and commercial banks.
Sites of multilateral development finance institutions such as the World Bank, the IMF, the various United Nations agencies, the European Union, and bilateral organisations (USAID, GIZ, AfDB, and CIA) are an important source of up-to-date macroeconomic data and socioeconomic analyses on the country.
The online press provides interviews and access to recent and public information, such as press releases from the Council of Ministers.
Nevertheless, the collection, and above all the availability of updated data (the last census dates from 2012, the next one is planned for 2021) and specific data on housing finance are complicated to obtain. Many websites are not up to date (especially companies in the real estate and construction sector such as SONUCI and SATU (Société d’Aménagement de Terrains Urbains)) or the pages are technically inaccessible (Institute of National Statistics).
COVID-19 response
Niger reopened its air borders[1] on 1 August 2020, which had been closed since 17 March to combat the spread of the pandemic. A state of emergency was declared from 27 March to October 2020.[2] During this period, the BCEAO took measures[3] to support the banking system, businesses and electronic payment tools. The government announced the postponement or abolition of charges for basic services, including exemptions from electricity tariffs.[4]
In terms of housing, the response was mainly provided by the international community, with the UNHCR providing 58 housing units in Niamey and 350 units (700 beds) in the country.[5] During this period, the government did not suspend evictions.
[1] Council of Ministers (2020). Statement of the Council of Ministers. 20 July 2020. https://www.niameyetles2jours.com/files/10/documents/109/COMMUNIQUE%20DU%20CONSEIL%20DES%20MINISTRES%20DU%2024%20JUILLET%202020pdf (Accessed 31 July 2020).
[2] Council of Ministers (2020). Statement of the Council of Ministers. 10 July 2020. https://www.niameyetles2jours.com/files/10/documents/107/COMMUNIQUE%20DU%20CONSEIL%20DES%20MINISTRES%20DU%2010%20JUILLET%202020pdf (Accessed 31 July 2020).
[3] BCEAO (2020). Press release. https://www.bceao.int/fr/communique-presse/communique-de-la-banque-centrale-des-etats-de-lafrique-de-louest-bceao (Accessed 31 July 2020.
[4] Zeufack, A.G., Calderon, C., Kambou, G., Djiofack, C.Z., Kubota, M., Korman, V. and Cantu Canales, C. 2020. Africa’s Pulse, No. 21 (Avril). Washington, DC. Doi: 10.1596/978-1-4648-1569-0. The World Bank. Licence: Creative Commons Attribution CC BY 3.0IGO. https://openknowledge.worldbank.org/bitstream/handle/10986/33541/9781464815690.pdf?sequence=17&isAllowed=y (Accessed 31 July 2020). Pgs. 68, 79, 125.
[5] UNHCR (2020). Coronavirus Niger: Niamey increases its capacity to take care of patients within the stadium. 22 April 2020. https://www.unhcr.org/be/28649-coronavirus-niamey-niger-augmente-ses-capacites-de-prises-en-charge-des-patients-dans-lenceinte-du-stade.html (Accessed 17 August 2020).
Websites
West African Economic and Monetary Union https://www.uemoa.int
Central Bank of West African States https: //www.bceao.int/
African Development Bank https: //www.afdb.org/fr
