Housing Finance in Sierra Leone
Overview
This profile is also available in French here.
To download a pdf version of the full 2021 Sierra Leone country profile, click here.
The Republic of Sierra Leone (Sierra Leone) is located on the southwest coast of West Africa and is bordered by Liberia to the southeast and Guinea to the northeast. In 2020 the country had an estimated total population of 7 976 985, and an estimated urban population of 3 423 961 (43% of the population), with an urbanisation rate of 3.1%.
The capital and largest city are Freetown, which is also the country’s major urban and economic centre and houses the seat of Government of Sierra Leone. Migration from rural to urban centres has placed pressure on authorities to address the housing crisis, with Freetown estimated to need an additional 280 000 housing units, or 19 000 additional houses a year, by 2028. In addition, service provision is poor and housing inadequate, with 94% of the homes in Freetown having no flush toilets and 66.6% of the population living in one or two rooms only.
The economy of Sierra Leone is dependent on diamond production, which has been unstable over the last few years and has recently been further impacted by COVID-19. Weak external demand for major exports, particularly diamonds, and declines in the mining, transport, trade, and tourism sectors have led to real gross domestic product (GDP) being estimated to contract by 2.7% in 2020 after growing by 5.4% in 2019. Inflation was estimated to pick up to 17% in 2020 from 14.8% in 2019. Real GDP per capita is projected to recover some of its losses but is expected to remain below 2019 levels for the next two to three years. Furthermore, 24% of houses in Freetown are of zinc construction, 13% are made of mud and 30,000 households depend on unsafe drinking water sources.
Find out more information on the housing finance sector of Sierra Leone, including key stakeholders, important policies and housing affordability:
- Macroecoomic Overview
- Access to Finance
- Affordability
- Housing Supply
- Property Markets
- Policy and Regulation
- Opportunities
- Availability of data on housing finance
- Urban Informality
- Additional sources
- Webistes
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.
Download yearbookSierra Leone
Macroecoomic Overview
The Republic of Sierra Leone has a total population estimated at 7 650 154 in 2020.[1] The urban population growth rate is 42.1 percent associated with a population density of 106 inhabitants per km2.[2] The capital city of Freetown has one of the highest population densities in the world with 8 450 people per km2, and a high proportion of informal settlements accounting for 35 percent of the city’s inhabitants. These are major challenges to preventive measures against the spread of COVID-19, as physical distancing and restrained movement may be difficult to practice in informal settlements.[3] Migration from rural to urban cities also puts pressure on authorities to address the housing crisis in the country. Freetown needs 280 000 housing units, or 19 000 houses a year by 2028.[4]
Sierra Leone has a fragile economy still recovering from a decade of civil war. The macroeconomy is mainly dependent on diamond production and has been unstable over the last few years. Its gross domestic product (GDP) is valued at Le42 993 116.254 (US$4.4 billion) with a GDP per capita estimated at Le5 442 538 (US$557).[5] The overall inflation rate was recorded at 15.47 percent in May 2020.[6] Government gross debt culminated at 65.4 percent of GDP.[7] According to World Bank development indicators, the lending interest rate in Sierra Leone was reported to be 17.92 percent in 2019.[8] While the unemployment rate remained at 4.3 percent in 2020, the job market remains fragile.[9]
The COVID-19 pandemic has adversely impacted economic activity, with economic growth rate projected to shrink by -3.1 percent in 2020 compared to the pre-COVID-19 projection of 4.1 percent growth.[10]
Since the onset of COVID-19, the Federation of the Urban and Rural Poor (FEDURP) and the Centre of Dialogue on Human Settlement and Poverty Alleviation (CODOHSAPA) have taken action to curb its spread.[11] However, the slums and informal settlements remain largely ignored by state institutions.[12] In April 2020, the federation put together a COVID-19 response plan aligned with the objectives of Sierra Leone Slum Dwellers International (SDI) Alliance for COVID-19.[13] This includes monitoring and advocacy activities at settlement and civil society level to minimise threats of eviction and counterproductive closures of essential informal services during periods of lockdown.[14] The COVID-19 response plan put together by FEDURP and CODOHSARA in collaboration with the Freetown City Council, which aligns with SDI’s objective to fight the pandemic, includes:
- Providing community owned and validated settlement profile; and
- Monitoring and advocacy of activities to minimise the threat of evictions.[15]
[1]Société Générale des Banques (2020). Presentation of Sierra Leone: Geography. Delivered June 2020. https://import-export.societegenerale.fr/en/country/sierra-leone/presentation-geography (Accessed 24 July 2020).
[2] Société Générale des Banques (2020). Presentation of Sierra Leone: Demography. Delivered June 2020. https://import-export.societegenerale.fr/en/country/sierra-leone/presentation-geography (Accessed 24 July 2020).
[3] ACAPS. (2020). Sierra Leone Covid-19 Outbreak. Delivered 2 April 2020. https://www.acaps.org/sites/acaps/files/products/files/20200409_acaps_start_fund_anticipatory_note_covid_sierra_leone.pdf (Accessed 24 July 2020).
[4] Home Leone. Housing. https://homeleone.org/impact/freetowns-housing-situation/ (Accessed 1 August 2020).
[5]Société Générale des Banques (2020). Presentation of Sierra Leone: Economy. Delivered June 2020 https://import-export.societegenerale.fr/en/country/sierra-leone/presentation-economy (Accessed 24 July 2020).
[6] Trading Economics. Sierra Leone Inflation Rate. https://tradingeconomics.com/sierra-leone/inflation-rate (Accessed 25July 2020).
[7] Société Générale des Banques (2020). Presentation of Sierra Leone: Economy. Delivered June 2020. https://import-export.societegenerale.fr/en/country/sierra-leone/presentation-economy (Accessed 24 July 2020).
[8]Trading Economics. Sierra Leone Unemployment Rate. https://tradingeconomics.com/sierra-leone/interest-rate (Accessed 25July 2020).
[9] Trading Economics. Sierra Leone Unemployment Rate. https://tradingeconomics.com/sierra-leone/unemployment-rate (Accessed 25July 2020).
[10] Bank of Sierra Leone (2020). Monetary Policy Statement 2020. 2 July 2020. http://www.bsl.gov.sl/Monetary%20Policy%20Statement.pdf (Accessed 26 July 2020). Pg.1
[11] SDI (2020). Sierra Leone SDI Alliance Response to Covid-19. 2 June 2020. http://knowyourcity.info/2020/06/sierra-leone-sdi-alliance-response-covid-19/ (Accessed 26 July 2020).
[12] SDI (2020). Sierra Leone SDI Alliance Response to Covid-19. 2 June 2020. (http://knowyourcity.info/2020/06/sierra-leone-sdi-alliance-response-covid-19/ (Accessed 26 July 2020).
[13] SDI (2020). Sierra Leone SDI Alliance Response to Covid-19. 2 June 2020. https://knowyourcity.info/2020/06/sierra-leone-sdi-alliance-response-covid-19/ (Accessed 26 July 2020).
[14] SDI (2020). Sierra Leone SDI Alliance Response to Covid-19. 2 June 2020. http://knowyourcity.info/2020/06/sierra-leone-sdi-alliance-response-covid-19/ (Accessed 26 July 2020).
[15] SDI (2020). Sierra Leone SDI Alliance Response to Covid-19. 2 June 2020. (http://knowyourcity.info/2020/06/sierra-leone-sdi-alliance-response-covid-19/ (Accessed 1 August 2020).
Access to Finance
The central bank in Sierra Leone (Bank of Sierra Leone) is 100% state-owned. Prior to its establishment, the West Africa Currency Board was responsible for the issue of currency in Sierra Leone. The objective and functions of the Bank of Sierra Leone as set out in the Bank of Sierra Leone Act 2011 are to formulate and implement monetary policy, financial regulation, and prudential standards and to license, register, regulate and supervise financial institutions in the country. The key legal provisions that make up the financial system in the country are contained in the Bank of Sierra Leone Act 2019. This Act provides for the continued existence of the Bank of Sierra Leone and for it to act as banker, adviser and fiscal agent and to support the general economic policy of the Government of Sierra Leone. The Banking Act of 2019, provides for the licensing of persons carrying on banking business, regulates and supervises banking activities, financial holding companies, and protects depositors. The Borrowers and Lenders Act 201922 provides for the legal framework for credit agreements, improves standards of disclosure of information in credit agreements, prohibits certain practices, and promotes consistency in the enforcement of credit agreements and related matters. In addition, the Borrowers and Lenders Act 2019 provides for the broadening of the scope of the collateral registry to include the registration of encumbrances in immovable assets and provides for lenders who are not licensed and supervised by the Bank of Sierra Leone to be able to register their security interest.
Despite the government’s commitment to narrow the gap between banks’ credit supply and households’ demand for loans in the housing industry, the financial sector remains difficult to access for Sierra Leoneans. In its functional responsibility of ensuring a sound and stable financial system, the Bank of Sierra Leone regulates and supervises 14 commercial banks, 56 foreign exchange bureaux, 17 community banks, 15 credit-only microfinance institutions, three deposit-taking microfinance institutions, two discount houses, a mortgage finance company, a leasing company, 59 financial service associations, an Apex Bank and three mobile financial services providers. Out of the 14 commercial banks regulated, three are locally owned and 10 are subsidiaries of foreign banks. Two of the local banks are government-owned and two are wholly private-owned banks. Despite a larger geographical presence of microfinance institutions in comparison to commercial banks, the use of personal loans to cover housing demand is limited.
The quality of assets of commercial banks deteriorated in 2020, with nonperforming loans increasing to 14.10% in quarter one of 2021 from 12.70% in quarter four of 2020. As of 28 June 2021, the monetary policy rate was 14.0%, the standing deposit facility rate was 8.0% and the standing lending facility rate was 17.0%. Sierra Leone’s debt is classified as being at high risk of debt distress, largely due to heightened solvency and liquidity risks arising from COVID-19. The high level of nonperforming loans poses a financial stability risk. Stress tests indicate that the public debt indicators are sensitive to shocks to growth and commodity prices.
[1] Bank of Sierra Leone (2020). Monetary Policy Statement 2020. 2 July 2020. http://www.bsl.gov.sl/Monetary%20Policy%20Statement.pdf (Accessed 26 July 2020).
[2] Bank of Sierra Leone (2020). Monetary Policy Statement 2020. 2 July 2020. Pg.1. http://www.bsl.gov.sl/Monetary%20Policy%20Statement.pdf (Accessed 26 July 2020).
[3] Bank of Sierra Leone (2020). Monetary Policy Statement 2020. 19 March 2020. http://www.bsl.gov.sl/Rules_for%20_Administering_the_Bank_of_Sierra_Leone’s_Special_%20Credit_%20Facility_for_the_%20COVID-19_Pandemic.pdf (Accessed 26 July 2020). Pg. 1
[4] Bank of Sierra Leone (2020). Monetary Policy Statement 2020. 2 July 2020. http://www.bsl.gov.sl/Monetary%20Policy%20Statement.pdf (Accessed 26 July 2020).
[5]Bank of Sierra Leone (2020). Monetary Policy Statement 2020. 2 July 2020. Pg. 2 http://www.bsl.gov.sl/Monetary%20Policy%20Statement.pdf (Accessed 26 July 2020).
[6] Bank of Sierra Leone (2020). Monetary Policy Statement 2020. 2 July 2020. http://www.bsl.gov.sl/FSR_2018.pdf (Accessed 26 July 2020). Pg. 10.
[1] Bank of Sierra Leone (2020). 2018/20 Financial Service Report. http://www.bsl.gov.sl/FSR 2018.pdf (Accessed 25 July 2020). Pg. 13.
[2] Bank of Sierra Leone (2020). 2018/20 Financial Service Report. http://www.bsl.gov.sl/FSR 2018.pdf (Accessed 25 July 2020). Pg. 31
Affordability
Poverty in Sierra Leone, which is associated with poor living conditions, overcrowding, and poor public policies, adversely affects the ability of poor people to earn enough to afford decent housing. Results show that the incidence of poverty in rural areas is more than double that of urban areas (86.3% and 37.6%, respectively). In addition, the intensity of rural poverty is 10% higher than urban poverty (50.9% and 60.3%, respectively). Three districts have been identified as having the highest incidence of multidimensional poverty in the country: Pujehun (87.2%), Koinadugu (86.5%), and Tonkolili (85.4%). In 2018, the overall poverty rate in Sierra Leone was 57%, with a total of 10.8% of the population living in extreme poverty. As in many developing countries, poverty rates are higher in rural areas than in the urban centre of Freetown (72.4% compared to 18.5%, respectively). This indicates that poverty in the country remains a largely rural issue.
First Bank of Nigeria Limited (FirstBank) is a Nigerian premier commercial bank with two branches in Freetown, operating through FBN Bank Sierra Leone, formerly registered as International Commercial Bank (ICB). The bank offers a mortgage for buying a first home, construction, and renovation. The home loan is available to individuals with verifiable and steady income flow and is for a maximum tenor of 20 years, requires a minimum down payment of below 30% and the property to be financed must be for residential and not commercial purposes.
Access Bank (SL) Ltd offers a mortgage loan for outright purchase of a property, a loan against an existing property of an applicant, a loan for home renovation/refurbishment, and a loan for property construction. The bank’s maximum loan to value is 70% and the bank targets high net worth individuals. The interest on the loans ranges between 18% and 23% per annum. Commerce & Mortgage Bank Sierra Leone Limited offers four housing products. A home purchase mortgage with a minimum deposit of 20% of the amount and a maximum loan amount of SLL1 230 769 233 (US$120 000). A home completion mortgage of which the amount must fall within the maximum loan limit of SLL1 230 769 233 (US$120 000) and the property must have reached at least lintel level and the maximum term for this facility is 15 years. A home improvement mortgage to assist applicants to undertake renovation and extension works on their existing houses but the applicant is to provide the clear and undisputed title to the property, which must be duly registered. A home equity mortgage
which is designed to enable applicants who own homes or may have already invested in residential properties to release the equity in those properties to improve their liquidity position, this loan shall not exceed a maximum of 50% of the Forced Sale Value of the property and the maximum loan amount is SLL1 230 769 233 (US$120 000).
The prevailing mortgage interest rate in Sierra Leone in 2020 was 18%. The price of the cheapest, newly built house by a formal developer or contractor in an urban area in local currency units is SLL210 000 000 (U$20 475) and the size of this property is 30 square meters. The construction labour cost per square meter in local currency units for the cheapest, newly built house averages between SLL1 000 000 (US$ 97.5) to SLL4 000 000 (US$ 390), and the total construction cost per square meter in local currency units for the cheapest, newly built house averages between SLL5 000 000 (US$487.5) to SLL9 000 000 (US$877.5). A standard 50 kg bag of cement in local currency units costs SLL97 200 (US$9.477) to SLL129 600 (US$12.636). The typical monthly rental price for the cheapest, newly built house by a formal developer or contractor in local currency units is between SLL1 350 000 (US$131.625) to SLL18 000 000 (US$1 755) but renters typically pay for one to three years before signing a lease. The typical land cost per square meter in urban areas is SLL367 200 (US$35.802) or more for beachfront and other prime areas in the Western Area Urban District, SLL216 000 (US$21.06) or more in the Western Area Urban District and SLL64 800 (US$6.318) or more in the Port Loko District.
[1] The Herald (2019). Construction firms join forces. 2 July 2019. https://www.herald.co.zw/construction-firms-join-forces/ (Accessed 1 August 2020).
[2] Sierra Leone Property Solutions. Properties for sale. https://www.sierraleonepropertysolutions.com/properties-for-sale/ (Accessed 26 July 2020).
Housing Supply
Sierra Leone faces challenges in providing decent affordable housing for the poor. The capital city Freetown is situated on steep hills leading inland. In Freetown, older two-story wooden houses have been replaced by structures built largely of concrete blocks, with corrugated iron or cement-asbestos roofs. Freetown is now home to a growing number of the country’s population and an issue that has arisen is that expansion ran not only along the coast but into the foothills. This has resulted in the mass deforestation and construction on wetlands and forest reserved areas coupled with torrential rains that saturate the soil, which in turn triggers rapid movement of rain or debris causing land and mudslides. Mudslides and landslides coupled with overcrowding in the dense clusters of homes in Freetown have resulted in the loss of lives, livelihoods, and houses in recent years.
In 2018, overall, 79.5% of households constructed the house in which they dwell and only 1.7% of households purchased their dwelling. Rural village houses in the various provinces are traditionally made of sticks with mud walls and thatch or grass roofs and may be circular or rectangular in shape.
The country suffers from an overdependence on imported building materials, which keeps the cost of housing construction out of reach for most Sierra Leoneans. The Freetown City Council has set two targets for Urban Planning and Housing in the Freetown programme. The first target is to reduce congestion by at least 50% in five locations by 2022 (Congo Cross, Eastern Police, Lumley/Juba, Wilberforce/Bottom Mango, and Wellington/PMB Junction) by establishing a partnership with key stakeholders and building on existing
programmes and strategies and delivering 5 000 units of low cost and quality housing. Minimum standards and a practical training program to support implementation will also be developed. The second target is to develop the Freetown Zonal Plan and to ensure that 90% of new buildings and structures constructed abide by the plan and appropriate regulations by 202044 as Freetown now has up to approximately 74 informal settlements.
[1] Oni, Y. (2019). Sierra Leone to commence construction of 5 000 affordable housing units 16 August 2019. Construction Review Online By Africa for Africa. https://constructionreviewonline.com/2019/08/sierra-leone-to-commence-construction-of-5000-affordable-housing-units/ (Accessed 31 July 2020).
[2] Oni, Y. (2019). Sierra Leone to commence construction of 5 000 affordable housing units 16 August 2019. Construction Review Online By Africa for Africa. https://constructionreviewonline.com/2019/08/sierra-leone-to-commence-construction-of-5000-affordable-housing-units/ (Accessed 31 July 2020).
[1] Urban Gateway. A New Kind of Private-Public Partnership for Housing in Sierra Leone (2020). https://www.urbangateway.org/dialogue/new-kind-private-public-partnership-housing-sierra-leone (Accessed 28 July 2020).
[2]Statistics Sierra Leone (2017). Sierra Leone 2015 Population and Housing Census: Thematic Report on Housing Conditions. October 2017. https://www.statistics.sl/images/StatisticsSL/Documents/Census/2015/sl_2015_phc_thematic_report_on_housing_conditions.pdf (Accessed 31 July 2020). Pg. 11.
[3] Oni, Y. (2019). Sierra Leone to commence construction of 5 000 affordable housing units 16 August 2019. Construction Review Online By Africa for Africa. https://constructionreviewonline.com/2019/08/sierra-leone-to-commence-construction-of-5000-affordable-housing-units/ (Accessed 31 July 2020).
[4] The Herald (2019). Construction firms join forces. 2 July 2019. https://www.herald.co.zw/construction-firms-join-forces/ (Accessed 1 August 2020).
[5] The Herald (2019). Construction firms join forces. 2 July 2019. https://www.herald.co.zw/construction-firms-join-forces/ (Accessed 1 August 2020).
[6] The Herald (2019). Construction firms join forces. 2 July 2019. https://www.herald.co.zw/construction-firms-join-forces/ (Accessed 1 August 2020).
Property Markets
Land administration in Sierra Leone is complicated. There are two types of land tenure, colonial land or freehold land, and customary land or leasehold land. Foreigners cannot own land under either of these systems but can lease for up to 99 years. There is no land titling system to validate ownership, so lease rights are hard to secure. In the World Bank 2020 Doing Business indicators, Sierra Leone is ranked 163 out of 190 countries. It takes 56 days to register a property in Sierra Leone while it takes 51.6 days in Sub-Saharan African countries. The cost of registering property is 10.6% of the property value in Sierra Leone compared to 7.3% in Sub-Saharan African countries.
[1] Global Property Guide (2007). Sierra Leone: Overview. https://www.globalpropertyguide.com/Africa/Sierra-Leone (Accessed 26 July 2020).
[2] World Bank Doing Business. Ease of Doing Business in Sierra Leone (2020) https://www.doingbusiness.org/en/data/exploreeconomies/sierra-leone#DB_rp (Accessed 26 July 2020).
[3] Sierra Leone Property Solutions. Properties for sale. https://www.sierraleonepropertysolutions.com/properties-for-sale/ (Accessed 26 July 2020).
[4] Sierra Leone Property Solutions. Properties for sale. https://www.sierraleonepropertysolutions.com/properties-for-sale/ (Accessed 26 July 2020).
Policy and Regulation
The Government of Sierra Leone embarked on an economic restructuring programme which includes a public enterprises reform programme through privatisation. In implementing this reform, the Government of Sierra Leone established the National Commission for Privatisation (NCP) through the enactment of the National Commission for Privatisation Act 2002. The public entities under the NCP mandate have been categorised into various sectors, one of which is the financial sector which includes the Sierra Leone Housing Corporation (SALHOC), which is a real estate development and management firm in Sierra Leone mandated to assist in improving the living standards of Sierra Leoneans by providing loan schemes for building materials. SALHOC was established for the purpose of addressing the need for investment in housing and infrastructure development in the country through targeting funding from the private sector. In addition, SALHOC has been geared to be an innovative and effective provider of affordable, accessible, and sustainable housing for middle and low-income individuals and families in Sierra Leone. It is anticipated that SALHOC will develop a minimum of 6,500 houses for sale and lease and develop building materials training centers in Freetown and Bo to produce Cinva Ram bricks (laterite and clay). These activities are expected to be financed through joint venture agreements and strategic alliances with a number of strategic partners.
Established before the 1990s, Sierra Leone land rights include the Non-Citizens (Registration, Immigration, and Expulsion) Act of 1965, the Protectorate Land Ordinance of 1927, the Imperial Statutes Act, the Town and Country Planning (Amendment) Act No. 3 of 2001, and the Summary Ejectment Act No. 6 of 2006. The land is classified as state, private or communal. However, most land is governed by customary tenure in a chieftaincy system with chiefs as custodians. The Local Government Act No. 1 of 2004 gives local councils the right to acquire and hold land. The National Land Policy of 2005 promotes equal opportunity to protect property and preserve the existing rights of private ownership.
[1] USAID (2010). Country Profile. Property Rights and Resource Governance Sierra Leone. https://www.land-links.org/wp-content/uploads/2016/09/USAID_Land_Tenure_Sierra_Leone_Profile.pdf (Accessed 28 July 2020). Pg. 5
[2] USAID (2010). Country Profile. Property Rights and Resource Governance Sierra Leone. https://www.land-links.org/wp-content/uploads/2016/09/USAID_Land_Tenure_Sierra_Leone_Profile.pdf (Accessed 28 July 2020). Pg. 6.
[3] USAID (2010). Country Profile. Property Rights and Resource Governance Sierra Leone. https://www.land-links.org/wp-content/uploads/2016/09/USAID_Land_Tenure_Sierra_Leone_Profile.pdf (Accessed 28 July 2020).
[4] Macarthy, J. and Yusuf, Y. (2020), Sierra Leone Urban Research Centre. Supporting informal settlements and the specific needs and risks to consider in relation to COVID-19: Lessons from the Ebola outbreak in Freetown, Sierra Leone. Sierra Leone Urban Research Centre. https://www.slurc.org/uploads/1/0/9/7/109761391/slurc_policy_brief_covid19_informal_settlements.pdf (Accessed 28 July 2020).
[5] Urban Gateway. A New Kind of Private-Public Partnership for Housing in Sierra Leone. https://www.urbangateway.org/dialogue/new-kind-private-public-partnership-housing-sierra-leone (Accessed 28 July 2020).
[6] Urban Gateway. A New Kind of Private-Public Partnership for Housing in Sierra Leone. https://www.urbangateway.org/dialogue/new-kind-private-public-partnership-housing-sierra-leone (Accessed 28 July 2020). Pg. 1.
Opportunities
The country needs to complement ongoing domestic revenue mobilisation efforts by deepening ongoing financial sector reforms to support domestic credit market growth. Sierra Leone is on a development trajectory towards achieving middle-income status by 2035. Housing Investment offers major investment opportunities that can boost GDP if the Government of Sierra Leone can develop an adequate policy tool to drive foreign and domestic investments in the housing industry in Sierra Leone. There is a crucial need for investment in housing in the form of upgrading or renovation of existing houses, construction of traditional and low-cost housing, and the building of conventional and luxury houses. The Government of Sierra Leone, therefore, encourages investors to get involved in housing development in the country. In addition, due to the prohibitive nature of the cost of land in the country, local councils are trying to remove unnecessary regulations in land acquisition and procure finance for projects.
[1] Kargbo, R.A. (2017). Reducing poverty: The Role of Housing in Sierra Leone-2017. https://fr.slideshare.net/RashidOrtoleKargbo/reducing-poverty-the-role-of-housing-in-sierra-leone-74373581 (Accessed 1 August 2020). Pgs. 2-4.
[2] Kargbo, R.A. (2017). Reducing poverty: The Role of Housing in Sierra Leone-2017. https://fr.slideshare.net/RashidOrtoleKargbo/reducing-poverty-the-role-of-housing-in-sierra-leone-74373581 (Accessed 1 August 2020). Pgs. 2-4.
[3] Kargbo, R.A. (2017). Reducing poverty: The Role of Housing in Sierra Leone-2017. https://fr.slideshare.net/RashidOrtoleKargbo/reducing-poverty-the-role-of-housing-in-sierra-leone-74373581 (Accessed 1 August 2020). Pgs. 2-4.
[4] Kargbo, R.A. (2017). Reducing poverty: The Role of Housing in Sierra Leone-2017. https://fr.slideshare.net/RashidOrtoleKargbo/reducing-poverty-the-role-of-housing-in-sierra-leone-74373581 (Accessed 1 August 2020). Pgs. 2-4.
Availability of data on housing finance
Data on housing finance in Sierra Leone is not easily accessible.
The Bank of Sierra Leone provides data on credit and interest rates. However, specific data on mortgage and mortgage rates in the housing sector is not available.
Commerce & Mortgage Bank Sierra Leone Limited and FBN Bank Sierra Leone collect data associated with home loan mortgage finance, but this data is not disaggregated and is kept confidential by these financial institutions.
Sierra Leone Property Solutions and Global Property Guide record data on properties in the country available for sale, purchase, and rent.
Sierra Leone Urban Research Centre records data on informal settlements in the country.
Urban Informality
Approximately only 16% of the population have access to basic sanitation services while 58% have no access to basic water services according to 2021 UNICEF figures.The World Bank indicates that in 2020 Sierra Leone had an urbanisation rate of 3.1% and a population growth rate of 2.1%.
In the various provinces in Sierra, Leone houses are traditionally made of sticks with mud walls and thatch or grass roofs and may be circular or rectangular in shape. Freetown now has up to approximately 74 informal settlements and it is estimated that 24% of houses in Freetown are of zinc construction and 13% are made of mud. Thirty thousand households in Freetown depend on unsafe drinking water sources.
According to Sustainable Energy for All, Sierra Leone has one of the lowest electricity access rates in the world with the national electrification rate being approximately 26% and this figure is 6% in rural areas in 2020. To close the electricity access gap mini-grids were
introduced to the country and the development of mini-grids has been implemented under two donor-funded projects and the largest of which is the Rural Renewable Energy Project, which was established with the objective of supplying up to five Mega Watts of renewable electricity in rural communities under public-private partnership agreements with the Ministry of Energy in Sierra Leone.
[1] Cham, K. (2020). Sierra Leone: Country to go into Second Lockdown as COVID-19 spirals. 2 May 2020. Daily Motion. https://allafrica.com/stories/202005040237.html (Accessed 29 July 2020).
[2] Bank of Sierra Leone (2020). Monetary Policy Statement 2020. 2 July 2020. http://www.bsl.gov.sl/Monetary%20Policy%20Statement.pdf (Accessed 29 July 2020).
[3]Know Your City (2020). Sierra Leone SDI Alliance Response to COVID-2019. 4 June 2020. http://knowyourcity.info/2020/06/sierra-leone-sdi-alliance-response-covid-19/ (Accessed 31 July 2020)
[4] Know Your City (2020. Sierra Leone SDI Alliance Response to COVID-2019. 4 June 2020. http://knowyourcity.info/2020/06/sierra-leone-sdi-alliance-response-covid-19/ (Accessed 31 July 2020)
[5] Know Your City (2020). Sierra Leone SDI Alliance Response to COVID-2019. 4 June 2020. http://knowyourcity.info/2020/06/sierra-leone-sdi-alliance-response-covid-19/ (Accessed 31 July 2020)
Additional sources
Access Bank https://sierraleone.accessbankplc.com/pages/customersupport/
Frequently-Asked-Questions/Loans/Mortgage-Loans.aspx
Zenith Bank https://www.zenithbank.com.sl/corporate-banking/investment-loans/
Global Property Solutions https://www.globalpropertyguide.com/Africa/Sierra-
Leone/squaremeter-prices
Webistes
Société Générale des Banques https://www.import-export.societegenerale.fr
ACAPS Sierra Leone https://www.acaps.org
Trading Economics https://www.tradingeconomics.com
International Monetary Fund https://www.imf.org
Sierra Leone Access Bank https://www.sierraleone.accessbankplc.com
Bank of Sierra Leone https://www.bsl.gov.sl
Know Your City https://www.knowyourcity.info
Jobomax www.africa-housing.com
