Housing Finance in Senegal


This profile is also available in French here.

To download a PDF version of the full 2022 Senegal country profile, click here.

Dakar, the capital city, has a population of almost four million people. Senegal is attempting to alleviate the housing shortage via fast urbanisation and population expansion. In Senegal, 25% of urban spaces and 30% of populated areas in Dakar are deemed “informal.” A sizable portion of the population lives in substandard dwellings with no access to land.

Senegal’s economy improved in 2020’s fourth quarter. Consumption and government investments boosted 2021 growth to 6.1%. GDP grew from 1.3% to 3.2% in 2021. A large informal sector and limited government funding hinder recovery. To aid economic recovery, the government established the Economic and Social Resilience Program.Inflation is anticipated to reach 5.5% in 2022. Budget constraints and a large informal sector hinder recovery. To help economic recovery, the government established an Economic and Social Resilience Program, and the central bank reissued Recovery Bonds and Support and Resilience Bonds.

Senegal is prone to drought, locust invasions, and coastline erosion from climate change. This susceptibility will undoubtedly rise, affecting the country’s economy and households. Senegal’s climate strategy reduces its susceptibility to climate change. 2011 saw the development of a national framework for catastrophe prevention and reduction.

Even though the microfinance sector is one of the most active in the WAEMU in terms of the number of structures, loans given, and people who benefit from them, it does not have a big impact on how people pay for their homes.The number of Decentralized Financial Companies increased from 294 in 2020 to 295 in 2021.Outstanding loans and deposits are CFA500 billion (US$793.5 million) and US$654 million, respectively. In July 2021, CRRH inked a refinancing and housing loan deal with COFINA Senegal for low-income and/or irregular families. COFINA is the first microfinance institution to benefit from CRRH refinancing in the WAEMU zone.

Foncier et Rénovation Urbaine has inked an agreement with the International Finance Corporation (IFC) to create 20,000 housing units in Senegal. The lease-purchase deal, signed on March 24, 2022, consists of obtaining excellent housing from developers and making it accessible to low-income individuals via a rental scheme with the opportunity to buy.

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