Housing Finance in Senegal
Overview
This profile is also available in French here.
To download a PDF version of the full 2023 Senegal country profile, click here.
The population in Senegal in 2023 is 18.27 million with an annual population growth rate of 2.6% and women constituting 50.25% of the total.[1],[2] The median age is 19 years. In 2022, Senegal’s Gross Domestic Product (GDP) was CFA16 640 billion (US$27.68 billion),[3] corresponding to growth of 4.15% per annum.[4] The outlook is positive for real GDP, which should grow by 5% in 2023.[5] In 2022, the inflation rate reached 9.7%, compared to 2.2% in 2021,[6] attributed to rising food prices, an unfavourable farming season, sanctions in Mali and the war in Ukraine.[7] To counter this inflation, the government froze the sale prices of some food staples at the end of 2022.[8] In January 2023, the government started drawing up a national food sovereignty strategy.[9]
Senegal’s housing deficit is estimated at 325 000 units with an annual increase of 12 000 units. [10] This is the result of population growth, rapid urbanisation and challenges in implementing affordable housing programmes. Housing production is estimated at 5 000 units per year or 7 000 units less than what is needed to address the annual shortfall of 12 000 units.
Housing supply is inadequate in the informal districts which are densely populated. Twenty-three percent of the population live in Dakar.
Senegal launched a programme of 100 000 Homes in 2019 through the MULHP – comprised 50% social housing, 20% low-cost housing and 30% luxury housing. Several institutions were created to support the programme e.g., the Land Use and Urban Renewal Corporation (SAFRU) and the Social Housing Funds (FHS). In 2023, 1 700 homes are being built and 26 agreements signed with private, public and international developers and housing cooperatives.[11]
Find out more information on the housing finance sector of Senegal, including key stakeholders, important policies and housing affordability:
- Overview
- Access to Finance
- Affordability
- Housing Supply
- Property Markets
- Policy and Legislation
- Opportunities
- Availability of Data on Housing Finance
- Example of Innovation
- Websites
Each year, CAHF publishes its Housing Finance in Africa Yearbook. The profile above is from the 2023 edition, which has up-to-date profiles for 55 African countries.
Download yearbookSenegal
Overview
The population in Senegal in 2023 is 18.27 million with an annual population growth rate of 2.6% and women constituting 50.25% of the total.[1],[2] The median age is 19 years. In 2022, Senegal’s Gross Domestic Product (GDP) was CFA16 640 billion (US$27.68 billion),[3] corresponding to growth of 4.15% per annum.[4] The outlook is positive for real GDP, which should grow by 5% in 2023.[5] In 2022, the inflation rate reached 9.7%, compared to 2.2% in 2021,[6] attributed to rising food prices, an unfavourable farming season, sanctions in Mali and the war in Ukraine.[7] To counter this inflation, the government froze the sale prices of some food staples at the end of 2022.[8] In January 2023, the government started drawing up a national food sovereignty strategy.[9]
Senegal’s housing deficit is estimated at 325 000 units with an annual increase of 12 000 units. [10] This is the result of population growth, rapid urbanisation and challenges in implementing affordable housing programmes. Housing production is estimated at 5 000 units per year or 7 000 units less than what is needed to address the annual shortfall of 12 000 units.
Housing supply is inadequate in the informal districts which are densely populated. Twenty-three percent of the population live in Dakar.
Senegal launched a programme of 100 000 Homes in 2019 through the MULHP – comprised 50% social housing, 20% low-cost housing and 30% luxury housing. Several institutions were created to support the programme e.g., the Land Use and Urban Renewal Corporation (SAFRU) and the Social Housing Funds (FHS). In 2023, 1 700 homes are being built and 26 agreements signed with private, public and international developers and housing cooperatives.[11]
[1] ANSD (2023). Number of inhabitants. Senegal. https://www.ansd.sn/ (Accessed 18 July 2023).
[2] World Bank. (2022). Population growth. Senegal. https://data.worldbank.org/indicator/%20SP.POP.GROW%20?locations=SN (Accessed 18 July 2023).
[3] World Bank. (2022). GDP. Senegal.
[4] World Bank. (2022). GDP Growth (annual %) – Senegal.
[5] African Development Bank (2023). Senegal Macroeconomic Outlook.
[6] ANSD. (2022). Harmonised consumer price index, Senegal.
https://www.ansd.sn/Indicateur/evolution-annuelle-de-lindice-harmonise-des-prix-la-consommation (Accessed 18 July 2023).
[7] African Development Bank (2023). Macroeconomic outlook.
https://www.afdb.org/en/countries/west-africa/senegal/senegal-economic-outlook (Accessed 18 July 2023).
[8] Gueye, A. (2022). Nouvelle baisse des prix au Sénégal. [Further price cuts in Senegal.] Kaay Xool. Published 14 November 2022.
[9] Houessionon, M. (2023). Senegal: $8.1 billion to implement a national food sovereignty strategy. 9 January 2023.
[10] Interview with Dr Serigne Matar Ka, Director of Regulation and Monitoring of Housing Policies, Ministry of Urban Planning, Housing and Public Hygiene, 10 August 2023, Ministerial Level of Diamniadio, Senegal.
[11] Entretien avec Docteur Serigne Matar Ka, Directeur de la Régulation et du Suivi des Politiques de Logement, Ministère de l’Urbanisme du Logement et de l’Hygiène Publique, le 10 août 2023, Sphère Ministérielle de Diamniadio, Sénégal.
Access to Finance
Access to housing finance is the main objective of the 100 000 Homes Programme; it assists households in the low income bracket with an income ceiling set at CFA 450 000 (US$749) since these households are generally excluded from banking systems because they do not have sufficient guarantees.[1]
In December 2022, Senegal had the most banking institutions in the West African Economic and Monetary Union (WAEMU) with 27 banks and 4 financial institutions. In 2020, there were 2.167 million accounts, or 21% of the population with a bank account. Deposits amounted to CFA 6 527 billion (US$10.85 billion), with an increase of 9% between 2019 and 2020.[2] There were 11 microfinance institutions in 2020 with a total of 3.37 million active accounts valued at CFA383 billion (US$637 million) in deposits and CFA 476 billion (US$791 million) in loans. The balance sheet of all microfinance institutions grew by 5.1% in 2020.[3] Notwithstanding this growth, it is important to note that there are many overdue accounts, and the proportion almost tripled between 2019 and 2020, rising from 5.6% to 16.3% respectively.
The report on the state of financial inclusion in the WAEMU region shows Senegal’s financial inclusion index has improved significantly over the past ten years due to a significant development in access to banking services.[4] Nevertheless, the rate of use of banking services remains low at 18.9% in 2021.[5] There are more points of service, closer together, but the percentage of the population using these banking services remains low, unlike electronic money services. This is explained by a high interest rate, which has been rising since 2020, and a lack of trust in banking services.
Very few banks offer housing finance products. In June 2023, the average interest rate offered by commercial banks was 8.69%.[6] The Banque de l’Habitat du Senegal (BHS) lends on average at an interest rate of 8%, which is the average rate for banks in Senegal. There are three types of financing—credit for acquisition, credit for renovation and credit for building—all of which are not accessible to the Senegalese population because of the guarantees required. Opening a bank account is not subject to discrimination, and women are free to do so without the consent of their husbands.[7]
Several public and private organisations acknowledge the difficulty of accessing finance and are trying to introduce innovative schemes for people living on modest incomes as part of the 100 000 Homes Programme. For example, the National Corporation of Affordable Rental Housing (SN HLM), the main developer set up in 1959, provides its customers loans with interest rates of between 5% and 11%, to enable them to purchase their home in instalments without any guarantee, in return for a deposit equivalent to one-third of the cost of the property.[8] This has been in existence for twenty years but is not accessible by many Senegalese because the cost of social housing is equivalent of 67 times the minimum wage (revalued 1 July 2023).[9]
Similarly, the government’s Strategic Investment Sovereign Funds (FONSIS) has developed a specific housing finance subsidiary to give the Senegalese access to home ownership. Kajom Capital, a subsidiary created in 2021, allows for 21 000 homes to be financed, offered on a hire-purchase agreement, for a total of CFA 425 billion (US$706 million), of which 30% will be social housing, 20% low-cost housing and 50% luxury housing.[10] Kajom Capital enables families to become homeowners by renting for a maximum of 12 years, at a monthly rent of less than CFA 85 000 (US$141).[11] This amount equals the rental for a F2 house (one bedroom and a living room) in the same geographical area. The target beneficiaries of this programme are formal and informal workers, the self-employed and the diaspora.
This innovative scheme is the result of a partnership with the Social Housing Fund which will guarantee 15 months’ monthly payments per home. The pilot phase will begin at the end of 2023 (four developers, 500 homes) supported by a dedicated rental management service.[12] Furthermore, the Priority Investment Guarantee Funds (FONGIP), through the Housing Guarantee Funds (FOGALOG), will guarantee the loans of un-bankable households to financial and microfinance institutions.
Besides the bank financing mechanisms, and the private and public organisations recently created as part of the 100 000 Homes Programme, the practice of community savings through tontines helps to finance most of the housing built on an incremental, self-build basis. Civil society organisations have innovative initiatives with significant result e.g., the Senegalese Federation of Inhabitants (FSH), with support from urbaSEN and urbaMonde, has set up an urban renewal fund (revolving fund) to improve housing and the living environment. In 2023, the volume of the revolving fund is estimated at more than CFA 655 million (US$1.89 million).[13]
[1] BCEAO (2022). Paysage bancaire de l’UEMOA. https://www.bceao.int/fr/content/paysage-bancaire (Accessed 21 July 2023).
[2] Ibid.
[3] Yao, O. (2022). Quelles sont les plus importantes microfinances au Sénégal?. Publié le 14 avril 2022. Sika Finance.
[4] “Access” measures the proximity of financial services to the population.
[5] BCEAO (2022). Rapport sur la situation de l’inclusion financière dans l’UEMOA au cours de l’année 2021. July 2021. Pg. 29.
[6] BCEAO (2023). Monthly Statistical Bulletin – June 2023. Published 31 July 2023. Pg. 41.
[7] Nawey.net (2011). Overview of legal protection of women’s rights in Senegal. December 2011. Pg.12.
[8] Interview with Modibo Sar, General Secretary, SN HLM, 03 August 2023, Fass Dakar, Senegal.
[9] CNP. (2023). Circular N°035/2023. Senegal.
https://fr.scribd.com/document/652186304/Hausse-des-Salaires-2023 (Accessed 18 September 2023)
[10] Interview with Tabara Mar, Director of Operations, KAJOM CAPITAL subsidiary FONSIS, 2 August 2023, Mermoz Dakar, Senegal.
[11] 1 living room, 1 parents’ bedroom, 1 children’s bedroom, 1 kitchen + laundry or washing room, 1 shower room (shower + hand-washer + WC seat), 1 covered family area. Area min 60 m2 on a plot of min 150 m2.
[12] See footnote 21.
[13] Interview with Bénédicte Hinschberger, urbaMonde Project Manager, on 11 September 2023, online from Dakar, Senegal.
Affordability
Housing affordability involves drawing a link between incomes and the cost of housing. The poverty rate remained stable at 37% in 2022.[1] The active work force is 62% of which 70% are men. Only 42.1% of the working population have a job. The employment rate is twice as low for women as it is for men, at 27.8% and 57% respectively.[2]
A census conducted in 2016, shows 407 882 businesses were listed as formal, representing 3% of total businesses implying that 97% of businesses are informal. More men (68.7%) than women (31.3%) run formal businesses.[3] Nine out of ten employees are employed in the informal sector (61% of them being men, and 39% women).[4] In the informal sector, 92% earn less than CFA110 000 (US$183) per month.[5] Women are more affected by economic precarity than men. In fact, women participate much more than men in unpaid activities – 90% compared with 54%.[6]
Monthly rentals averaged CFA53 000 (US$88) in 2019.[7] In addition CFA17 000 (US$ 28)[8] are spent on utilities (water, electricity), a total of CFA70 000 (US$116) per month. The majority, that is 92% of informal entrepreneurs earn less than CFA110 000 per month. Rental costs therefore account for a very large proportion of the budget of households, who are consequently unable to save for the purchase of decent housing or to access bank loans.
The cheapest house on the new housing market is a social housing unit on sale for CFA 12 million (US$19 960).[9] In order to be granted a purchase loan, buyers need a minimum of 10-20% for the down payment. The maximum debt ratio is 33%.[10] The loan can be taken up for a duration of 10 to 25 years. The shorter the term, the higher the interest rate.[11] Considering the cheapest house at CFA12 million (US$19 960), the borrower must make a deposit of between CFA1.2 million (US$1 996) and CFA2.4 million (US$ 3 992)[12] and provide guarantees of a regular income almost 3 times higher than the amount of the loan. In the absence of support from the government and banking these products remain unaffordable for the poorest members of society, especially those working in the informal sector.
Housing costs are related to the very high price of land, which accounts for 75% of the total cost of housing. In the area where the cheapest new homes are located, the price of land is CFA 60 000/m2, or CFA9 million (US$14 970) for a 150m2 plot.[13] Without support from the government and banking services to make serviced land available, it is not possible to build social housing at a price of CFA12 000 000 (US$19 960).
[1] African Development Bank. (2023). Perspectives macroéconomiques du Sénégal.
https://www.afdb.org/en/countries/west-africa/senegal/senegal-economic-outlook (Accessed 18 July 2023).
[2] ANSD. (2023). Enquête Nationale sur l’emploi au Sénégal Troisième trimestre 2022. Note d’informations. January 2023. https://www.ansd.sn/sites/default/files/2023-04/Rapport%20ENES%20T3-2022.pdf (Accessed 11 September 2023). Pgs. 2-3.
[3] ANSD. (2016). Synthèse des résultats du projet de rénovation des comptes nationaux (PRCN).
https://anads.ansd.sn/index.php/catalog/148/download/1248 (Accessed 13 September 2023). Pgs.11-12.
[4] The informal sector is defined as all production units operating in the Senegalese economy that do not keep accounts in accordance with the standards of the West African Accounting System (SYSCOA). In contrast, a business is said to be formal when it keeps accounts in accordance with standard accounting standards, as defined in the Diagnostic de l’économie informelle au Sénégal (Diagnosis of the informal economy in Senegal).
[5] International Labour Office. (2020). Diagnostic de l’économie informelle au Sénégal. Pgs. ix; 14.
[6] ANSD (2022). https://www.ansd.sn/sites/default/files/2023-04/RAPPORT_ENET_2021.pdf. (Accessed on 31 July 2023). Pg.11.
[7] ANSD. (2021). Enquête harmonisée sur les conditions de vie des ménages (EHCVM) au Sénégal. Rapport final. Setember 2021.
[8] See footnote 30. Pgs. 99, 103-107. Calculation based on annual expenditure.
[9] See footnote 10.
[10] SECK, A. (2021). Crédit immobilier au Sénégal: tout savoir sur la capacité d’emprunt. Keur City.
[11] Alpha (2020). What is the average duration and cost of a bank loan in Senegal. https://shorturl.at/gNORT (Accessed 18 September 2023)
[12] Own calculation and analysis based on the above data.
[13] Own calculation and analysis based on data from interview with Modibo Sar, Secretary General, SN HLM, 03 August 2023, Fass Dakar, Senegal.
Housing Supply
In Senegal, around 80% of the urban housing supply is self-built by residents or housing co-operatives and 20% by registered developers. Informal housing accounts for 25% of the country’s urban housing and 30% of the inhabited area in Dakar.[1]
There are an estimated 1 000 housing cooperatives in Senegal, around 400 of which are members of the National Union of Housing Cooperatives (UNACOOP/Habitat). In 2020, cooperative housing in Senegal had built 25 000 homes since its emergence.[2] Last September, an additional seven cooperatives were approved under the 100 000 Homes Programme.[3]
The main non-cooperative developers include Société Immobilière du Cap Vert (SICAP), SN HLM and TEYLIOM. In 2022, SN HLM started with the construction of 125 homes, sold 1 129 developed plots, and completed 136 homes in Dakar and other regions of Senegal.[4]
There are two predominant types of tenure in Senegal, rental and ownership and more than three out of four households own the accommodation they live in, and 17% rent it. Renting is more common in Dakar (48% of households), while ownership is more widespread in other towns (nearly 70%) and in rural areas (93%). In rural areas, barely 1% of households are renting.[5]
More than seven out of ten households live in low-rise housing. Dakar is the exception, with many blocks of flats and two-storey houses, where more than half of all households live.[6]
The poorer districts that account for most of the housing supply (informal settlements) share some common characteristics: narrow streets, a lack of facilities and services, irregular land titling, nonexistence of sewage systems and overcrowded precarious housing.[7] In fact, the average size of a household is between 5 and 9 people yet almost half of all households have no more than three rooms, i.e., 75 m².[8] Although the majority of homes are built of concrete (76.2%), rainwater drainage and solid waste disposal need to be improved.[9] It is critical to restructure these precarious, high-density neighbourhoods and to fortify the land regularisation process, which has a direct impact on investment in these areas and therefore on the quality of the housing.
In 2023, SAFRU[10] developed nine sites for developers, covering a total area of 465 hectares, to produce 10,471 future homes in urban or semi-urban areas. Development of the Daga Kholpa site (public property) is underway. In the long run, 800 hectares in 30 urban and rural areas will be developed by the State via SAFRU to support the implementation of the 100,000 Housing Programme.[11]
The MULHP initiated a dialogue with other ministries with a goal to modernise and strengthen housing production systems by controlling construction costs since most building materials are imported. For instance, a materials production purchasing centre could be set up for the 100 000 Homes Programme to facilitate the administrative exemption procedure for developers, control costs and monitor supply shortages. Training programmes for unskilled labour will be the key to success for the mass production of housing – MULHP signed an agreement with the The Vocational Training Sector Centre / Building and Public Works (CSFP-BTP).[12]
[1] UN-HABITAT. (2012). Profile of the Housing Sector in Senegal. Pg. 1.
[2] Interview with Serigne Cheikh Mbacké, President of the Union Nationale des Coopératives, 02 August 2023, online from Dakar, Senegal.
[3] Data from the seminar on building the capacity of cooperatives to come up with innovative housing projects, held on 18 August 2023 and organised by Architecture & Développement. Presentation by Amadou Thiam, General Director of Construction and Housing (DGCH).
[4] See footnote 19.
[5] See footnote 38. Pg. 37.
[6] ANSD. (2021). Enquête harmonisée sur les conditions de vie des ménages (EHCVM) au Sénégal. Rapport final. September 2021. Pg. 88.
[7] See footnote 38. Pg. 35.
[8] Habitat Worldmap (2019). Senegal. Published September 11, 2019. https://habitat-worldmap.org/pays/afrique/senegal/ (Accessed 9 August 2023).
[9] See footnote 43. Pg. 116.
[10] SAFRU is responsible for primary and secondary planning (public roads, drinking water conveyance to plots, vegetation, water drainage (connections if existing or creation of networks), wastewater drainage network and site revegetation) of land belonging to developers or its own land made available to developers.
[11] Interview with Diokhane Saye, SAFRU evaluation manager, 7 August 2023, Mermoz, Dakar, Senegal.
[12] See footnote 10.
Property Markets
The residential property market is polarised between rentals and sales with demand for housing outstripping supply. Returns on residential property in Senegal are at about 6%.[1] Historically, SN HLM produced social housing in agreement with the State, but today most, if not all, of rental housing is developed by private, profit-driven individuals.[2] However, controlling rental prices is necessary to provide decent accommodation in the short term for families on modest incomes, and to enable them to move on to a new home.
Rental prices in Dakar are rising at an exponential rate. Between 1994 and 2014, rental costs rose by 256%, and by 200% over the last eight years.[3] Inflation remains lower in the regions. For example, in Dakar, a flat with three bedrooms and a living room rents for around CFA 400 000 (US$665) a month, while in the Thiès region, 70 km from Dakar, it costs around CFA 250 000 (US$416) a month[4]. As part of the 100 000 Homes Programme, local authorities will be encouraged to set aside a percentage of social rental housing which they can manage themselves, thus facilitating residential mobility for civil servants who were transferred to regions with no rental housing.[5]
There are an estimated 190 real estate agencies involved in residential property transactions in Senegal.[6] Training in the property sector is scarce: the Ecole Supérieure de l’Immobilier offers courses in this field, and Keur City has a one-month fast-track training programme to become a property agent or representative.[7], [8] In practice, this lack of training and the lack of regulation of the property market have led to a number of informal professions, with the development of the property broker profession, which in reality is similar to an unregulated intermediary function between owners and agencies, in return for an informal commission often corresponding to a month’s rent.
Land is subjected to much speculation in Senegal, and land prices are rising exponentially. Regularising land titling to obtain a title deed is very lengthy, and can take from five to ten years, or even longer.[9] As a result, very few owners have title to the land. Moreover, a lease is all that is needed to receive a building permit,[10] which can be obtained within 28 days for low-rise housing and 41 days for complex development projects.[11] This does not encourage owners to complete the land regularisation procedure.[12] Land registers have not yet been digitalised nor centralised, making it difficult to track applications for land regularisation. As part of the 100, 000 Homes Programme, a single desk has been set up to facilitate land regularisation within a few months. The challenge is to eventually extend this to all housing projects.[13]
[1] SECK, A. (2023). Real Estate in Senegal: Market Trends in 2022. Keur City.
[2] See footnote 19.
[3] DIALLO, I. (2022). Eight years after the failure of the 2014 law: Macky Sall “imposes” a new cut in rent prices. Published on 7 November 2022. Sud Quotidien.
[4] Expatdakar (2023). Flats for rent – Dakar. https://shorturl.at/osDWX (Accessed 12 August 2023).
[5] See footnote 10.
[6] Dorgoo. Agence immobilière Sénégal : List of estate agencies in Senegal: Dakar region.
https://www.blog.dorgoo.sn/agence-immobiliere-senegal-liste-agences-immobilieres-senegal-region-de-dakar/ (Accessed 12 August 2023).
[7] Edukiya. Sup Immo – Ecole Supérieure de L’immobilier Dakar. https://edukiya.com/fiche/sup-immo-ecole-superieure-de-limmobilier-dakar/ (Accessed 11 September 2023).
[8] SECK, A. Formation pour ouvrir une agence immobilière au Sénégal. Keur City. https://keurcity.com/formation-ouvrir-agence-immobiliere-senegal/ (Accessed 12 August 2023).
[9] Interview with Mamadou Lamine Kane, Technical Advisor for the General Director of Urbanism and Architecture, 10 August 2023, Sphère Ministérielle, Senegal.
[10] The Dakar and Thiès regions are benefiting from the dematerialisation of the procedure through the Teledac platform (currently being rolled out nationwide).
[11] See footnote 10.
[12] In Senegal, there are two domains: the private domain (State and private individuals) and the national domain (the communes). The communes are the ones responsible for issuing the deliberations (1st stage), then the tax and property department issues the regularisation by means of a lease in the name of the State (2nd stage), and finally the State establishes the land title in the name of the owner. This is how the land passes from the national domain to the private domain. This procedure is lengthy and requires the involvement of 3 different departments.
[13] Data from the seminar on building the capacity of cooperatives to mount innovative housing projects, held on 18 August 2023, and organised by Architecture & Développement. Presentation by Amadou Thiam, Director General of Construction and Housing (DGCH).
Policy and Legislation
The state recently provided legislative measures as to regulate the property market and support the production of housing. The state regulates the pricing of rents in the private rental sector through decree no. 2023-382 of 24 February 2023[1] – this came into effect on 1 March 2023 to cap and regulate the rental market.[2] The government has set up the National Commission for Rent Regulation (CONAREL) to support tenants. In April 2023, 1 261 complaints were put on record.[3] In practice, implementing the decree turned out to be complicated, with many tenants forced to leave their homes before and after the law came into effect, as they were unable to find a representative or the financial means to hire a bailiff to resolve disputes with landlords who refused to apply the law.
A new urban planning and construction code will come into effect from 2024, which will involve changes to obligations regarding geotechnical studies prior to construction, auditing developers (compulsory approval and registration), universal accessibility in buildings open to the public and high-rise buildings (more than 25 metres), parking spaces per dwelling, and so on.[4]
[1] NGOM, B. (2023). Tenants relieved, but not yet reassured. Sud Quotidien. 7 March 2023.
[2] Ministry of Commerce, Consumer Affairs and SMEs. (2023). Reduction in rental prices. Published March 2023.
[3] SARR, A.B. (2023). Rent regulation: regional and departmental commissions set up to relieve tenants. Ouragan. 9 May 2023.
[4] See footnote 10.
Opportunities
Social housing is the main opportunity for 80% of the Senegalese population who fall outside of the residential property market due to earning modest and irregular incomes. Building and financing social housing requires three essential elements. Firstly, it is necessary to support the operational implementation of a framework for consultation with banking institutions so that the most vulnerable households get access to a mortgage loan at a preferential rate with a state guarantee. Secondly, access to land and its regularisation need to be simplified, as well as the structuring of land management limit or prevent land speculation. Thirdly, the construction of social housing requires preferential conditions via incentive subsidies, and a legislative framework to actively support the production of housing using local and sustainable materials. Importantly, the State must make a strong commitment to the public policy of social housing and provide all the legal and financial instruments to the MULHP and to the housing production institutions to complete the 100 000 Homes Programme.
Supporting and assisting housing cooperatives in their collective drive to produce housing would make it possible to construct social housing on a massive scale. To achieve this, it is crucial to support the regularisation of land ownership to reduce administrative delays and avoid land speculation; and to support access to specific financing and to structure technical assistance within the National Union of Cooperatives to provide cooperatives with technical and financial expertise. The renewal of the Union’s governance with the support of the MULHP is essential to strengthen the partnership between the State and housing cooperatives.
Several cooperative support projects are being implemented in partnership with the MULHP. An example is the BAN BAN eco-district project in Thiès, run jointly by Elementerre and the Worofila collective. Another example is the Sustainable and Affordable Housing Project (PHARD) run by Architecture & Développement and Coopimmo, which will assist four cooperatives with the construction of their homes and carry out a study on alternative solutions for the promotion of affordable housing and the pre-feasibility of an eco-construction sector.[1] Also worth mentioning is the FSH cooperative project Cité FSH, which plans to build 150 homes in Diender.
[1] Data from the seminar on building the capacity of cooperatives to explore innovative housing projects, held on 18 August 2023, and organised by Architecture and Development.
Availability of Data on Housing Finance
Census data from the National Agency of Statistics and Demography (ANSD) is regularly updated and easily available. Stakeholders involved in the production of housing are easily accessible for interviews making the collection of primary data and information on trends in housing production, particularly as part of the 100 000 Homes Programme, easy to obtain. However, it is difficult to reach out to stakeholders involved in housing finance. Despite the centralisation of data at BCEAO, it is not easy to access data to analyse housing finance beyond the current 100 000 Housing Programme. The government is currently working on a paperless system to centralise land and tax data for more efficient monitoring.
Example of Innovation
The FSH housing cooperative with technical assistance from urbaSEN, an NGO, is implementing the Cité FSH cooperative housing project in Diender Guedj, comprising 140 homes and community facilities.[1] Technical partners (urbaMonde, CRAterre, etc.) and financial partners (Fondation Abbé Pierre, GIZ, International Budget Partnership, Fédération Genevoise de Coopération, Fédération Vaudoise de Coopération) are working together on the project. The project is recognised as an eco-neighbourhood by the French Ministry for Ecological Transition and Territorial Cohesion and will be part of the Senegalese government’s 100 000 Homes Programme supported by the MULHP.
The beneficiaries are members of the FSH housing cooperative; mainly vulnerable people, mostly involved in informal economic activities, mostly women, sometimes widows or women abandoned by their husbands, with dependent children and a small income, and most of whom live with family and friends on a rental basis. Ownership of the land will be collective (no parcelling out of plots) and will belong to the cooperative, while the buildings will be sold to the members of the cooperative. Financing will be mixed, participatory and inclusive, comprising a self-contribution, a loan from the Senegalese Federation of Inhabitants self-managed collective savings fund, a bank loan, and a portion in the form of donations and subsidies. The homes will be built using local, sustainable pressed mudbricks that will help to strengthen the local economy through training and action. Craftsmen will be trained to master the entire local materials production chain. The first pilot homes will be built in 2024.
[1] urbaMonde (2021). Projects. Supporting local stakeholders. Partnership and support for the Cité FSH project. https://shorturl.at/beCH0 (Accessed 1 August 2023).
Websites
BHS: https://www.bhs.sn/
Caisse des Dépôts et Consignations: https://cdc.sn/presentation/
Collectif Worofila: https://worofila.com/
Elementerre: https://au-senegal.com/elementerre-construire-en-blocs-de-terre,13630.html
FHS: https://www.facebook.com/profile.php?id=100064007764751
FONGIP: http://unefamilleuntoit.gouv.sn/fr/promoteur/sicap-sa
FONSIS: https://www.fonsis.org/fr
MULHP: https://urbanisme.gouv.sn/
SAFRU: https://www.safru.sn/
SN HLM: http://www.snhlm.sn/
UrbaMonde: https://www.urbamonde.org/
UrbaSEN: https://urbasen.org/
