In Senegal, the challenges of housing finance are primarily on the demand side.¹² In 2021, 28% of adults had an account with a financial institution in Senegal, while the average was 40% in sub-Saharan Africa. This percentage was 32% for men and 24% for women. In addition, 12% of adults over the age of 25 have already taken out a loan from a financial institution (including 11% of women and 9% of men).¹³

The financial sector in Senegal continues to grow and is showing constant dynamism. Its banking network, the most developed in the sub-region, is composed of 29 banks and 4 financial institutions at the end of December 2023. In 2023, 2 834 382 accounts were opened with these institutions,¹⁴ compared to 2 920 268 in 2022, for a total amount of credits of CFA12 853 billion (US$21 million).¹⁵ At the end of 2023, banks in Senegal (19.5%) and Côte d’Ivoire (33.7%) continue to dominate in the banking activity of theWest African Monetary Union (WAMU), with a market share of 53.2% on a total asset basis.¹⁶

In 2023, the 297 Decentralised Financial Services (DFS) that make up the Senegalese microfinance sector recorded an increase in members and deposits, which increased by 16% compared to 2022. Deposits constituted CFA570 billion (US$934 million), or 3.7% of GDP. In addition, the granting of credit increased by 24% to reach CFA223 billion (US$381 million).¹⁷ Although the sector is expanding rapidly, in terms of the number of structures, loans granted and beneficiaries, it is experiencing a timid performance in terms of housing financing. Microfinance products for housing are rare but if offered constitute small, non-mortgaged loans offered for relatively short periods and in series, with the aim of supporting the progressive building practices of low income populations.¹⁸

The mortgage market in Senegal is underdeveloped and cannot adequately stimulate the housing sector. In 2017, only 4% of adults over the age of 15 had an outstanding mortgage. Access was twice as high for men (6%) as for women (3%).¹⁹ However, since 1979, the Banque de l’Habitat du Sénégal (BHS) has been the main real estate financing institution in Senegal.²⁰ It mobilises 60% of outstanding housing financing in the WAEMU area, to finance the acquisition of housing for individuals and the production of housing by real estate developers.²¹ It was the main funder of the Urban Pole of Diamniadio (PUD) (a new city that has been home to the largest infrastructures of the State of Senegal since the year 2000).²² It has been able to adapt its strategy and rules of intervention to market constraints and new government measures in the context of social housing programmes promoted and the “100 000 housing units” project.

In addition, BHS manages to capture a significant share of the loans granted by the Regional Mortgage Refinancing Bank (CRRH-UEMOA) in Senegal, with an authorised refinancing amount of CFA33 billion (US$54 million), which represents 63.3% of the total, and 76% of disbursements, i.e. CFA25 billion (US$41 million). The support of the CRRH has a beneficial effect on the activity of the BHS, increasing its capacity to distribute mortgages to individuals. BHS was able to leverage this refinancing to grant at least 835 new mortgages,²³ more than 70% of which were for social housing.²⁴ In Senegal, financing housing supply through the mobilisation of market resources is almost non-existent outside of CRRH interventions, and real estate developers specialising in affordable housing are absent from the financial market.

The financing of loans to civil servants, known as the Direction de la Monnaie et du Crédit (DMC) credits, is the most visible and direct form of state support for access to housing. These loans are pre-financed by BHS to the tune of CFA5 million (US$8 194). During the 2014/21 period, DMC loans were granted to 21 525 beneficiaries for an amount of CFA52 billion (US$85 million).²⁵

The subsidy and guarantee funds (Guarantee Fund for Access to Housing – FOGALOG), Social Housing Fund (FHS), and Kajom Capital) set up to support the “100 000 housing units” programme have not yet contributed to creating an encouraging financial environment for investors in the housing sector. They are essentially not operational due to a lack of regular and sufficient funding.

Half of Senegalese of working age are employed (52.2%). This rate is significantly higher among men (62.4%) than women (42.5%). 26 The usual employment rate of 33.7% reflects a low real participation of the working population in the labour market.²⁷ The unemployment rate is estimated at 18.6%. The informal sector provides 62.2% of total employment and 90% of all workers are in informal employment.²⁸

Two key elements of access to housing are the level of household income and the price of housing. Depending on the socio-professional category, an executive earns an average of CFA348 653 (US$571) per month, which is three times more than a skilled worker or employee who earns 1.7 times the salary of a manual or unskilled employee. Gender inequalities remain,since on average, a male executive earns CFA374 700 (US$614), which is 1.3 times more than the salary of a female executive. The same trend can be observed for other socio-professional groups.²⁹

Housing expenditure is the second largest item of expenditure for Senegalese households, after food.³⁰ Nationally, households spend an average of CFA53 348 (US$87) per year³¹ on water and CFA139 964 (US$229) on electricity.³² In 2021, rents accounted for 15.5% of total spending by renter households.³³ The monthly rent was around CFA53 000 (US$86). It is much higher in the department of Dakar CFA64 502 (US$105) compared to less than CFA30 000 (US$49) in other areas. The most expensive municipalities in the department of Dakar remain Plateau, Fann-Point-E-Amitié and Ngor Almadies for prices per m2 for rent between CFA5 600 (US$9) and CFA17 000 (US$27).³⁴

In 2023, the cheapest housing cost CFA14 million (US$22 943) for an F3 villa in Thiès, offered by the private developer Espace Sénégal.³⁵ This product costed CFA216 000 (US$354) per month and CFA71 million (US$117 658) over the term, at an interest rate of 8% over 25 years, assuming a 20% deposit. This housing was affordable for 80% of the urban population.³⁶

Most households cannot access well-developed and serviced land, due to high market prices. The scarcity of land in the capital Dakar is a factor that encourages speculation. The cost per m2 varies between CFA400 000 (US$655) and CFA1 000 000 (US$1 638) and in the city of Thiès, the square meter varies between CFA100 000 (US$163) and CFA233 000 (US$381).³⁷

The urban landscape in Senegal is distinguished by a formal or regular housing structure and an informal or irregular housing structure. The low house is the most common type of housing. Indeed, nearly two out of three households (62.8%) live in low-rise dwellings.³⁸ This is followed by two-storey dwellings and single-family dwellings, which account for 21.9% and 11.8% of households, respectively. In Dakar, the two-storey house remains the most common type of housing, housing 54.5% of households. Residents of apartment buildings represent only 1.4% of the inhabitants in Senegal.

The most common mode of housing production among households in Senegal is self-construction (61.8%), particularly among households with low or irregular incomes.³⁹ The long construction time, the limited use of experienced professionals and the average construction quality are the main characteristics of this form of construction. Cement, the price of which has risen steadily to CFA3 500 (US$5.73) in April 2024,⁴⁰ is the most used building material (77.6% of households).⁴¹ Among households, 0.6% choose to buy a home from a real estate developer and 1.7% through a housing cooperative. Households that have inherited their home represent 27.5% of owners.⁴²

Since 2019, the state’s actions in the context of housing policy have mainly focused on the “100 000 housing units” programme and the Project for the Acceleration of the Supply of Social Housing (PAOHS). The peri-urban area of Dakar is home to most of the new real estate programmes, including those of the “100 000 housing units” programme. In addition to the significant delays due to the slow development of the sites, there are also constraints in terms of land mobilisation by the state and coordination of the actors involved in the implementation. In addition, the SAFRU S.A (Société d’Aménagement Foncier et de Rénovation Urbaine) lacks sufficient financial resources to develop all the available sites as soon as possible.⁴³

Consequently, there has been an increase in overall programme expenditure, with a significant impact on the sale prices of housing and the jeopardisation of affordability. In 2023, the programme was only able to generate 157 housing units out of a target of 10 000 units. Compared to 2022 (749 units), the result is low. ⁴⁴

The results in terms of the production of housing units were greater when it comes to the PAOHS project, which was first set up as part of the Priority Action Plan (PAP I, 2014-2018). With regard to this programme in particular, SICAP SA built 273 housing units in 2023, out of a target of 953.⁴⁵ Between 2022 and 2023, the number of homes increased from 171 to 273, an increase of 60%. The production of SN HLM has decreased from 1 254 to 725 units.⁴⁶ Lastly, two private developers (S2I and Espace Sénégal) offer rent-to-own housing. In 2023, of the 1 774 housing units planned, S2I built 153.⁴⁷

Regarding the subdivision authorisations for the sites of the 100 000 housing project, international developers received a considerable area (148 ha) for a total of 3 500 housing units planned, followed by private developers (120 ha) with a target of 5 987 housing units expected. Housing cooperatives are in third place with 43 ha authorised to be subdivided for 2 222 housing units. The share of public developers (SN HLM and SICAP SA) is the lowest, with only 30 ha authorised to be subdivided for an expected production of 800 housing units.⁴⁸

These results highlight the important role that the private sector should now occupy in the field of real estate development and also highlight the still limited capacity of the public sector in terms of housing production.

Dakar has become a hub for foreign capital investment in real estate: it is difficult to find a real estate project that does not house 20% or even 30% foreigners.⁴⁹ One of the country’s main assets is its political and institutional stability. BHS’s proactive commitment, the variety of target audiences (couples leaving the main household, tenants, women looking for a property, neo-urban people from internal migration or multi-nuclear households wishing to improve their living comfort) and, to a lesser extent, the exploitation of oil and gas, contribute to strengthening the strong growth of the real estate sector in Dakar.

However, the absence of a construction industry hinders the expansion of affordable housing, in a real estate sector dominated by the middle and high class. In the department of Dakar, the average rent for a room is CFA63 000 (US$103), while an F2 is rented at CFA149 000 (US$244) and an F3 at CFA280 000 (US$458). Around 96% of the real estate available on the market is for rent, with 70% apartments with two rooms or more, while 21% are studios. This can be explained by the real rate of return in the rental sector, which is between 6% and 8%.⁵⁰

Nationally, 67.4% of households are owners, while 20.2% are renters. Of the owners, 79% have a title deed and 14% have no title.⁵¹ Condominium households (5.1%) are the third most common type of tenure, followed by 3.1% of renters, 1.5% housed by family or friends and 0.8% housed by their employer.⁵² Compared to other regions of the country, Dakar is characterised by a low proportion of households owning their homes (38.8%) and a significant presence of tenants (47.2%).⁵³ This can be explained by the large presence of migrants from other regions and the high selling price of land and housing, due to high demand, land speculation and the concentration of economic activities in the capital (which accounts for about 55% of Senegal’s GDP).⁵⁴

Real estate agencies play a crucial role in establishing a connection between the demand and supply of housing and land for rent. With more than 466 real estate agencies listed in Senegal, only 100 comply with the standards to date.⁵⁵ As far as brokers are concerned, they are individuals who work in informal networks and as freelancers. In general, their commission for the sale is 5% of the total amount of the transaction.

In addition to its role as a facilitator and regulator in the housing sector, the State of Senegal has always played an important role in supporting housing construction. This is reflected in the provision of essential infrastructure (road networks, electricity, water, sanitation) as well as the allocation of land and financial tools for social housing projects.

The State of Senegal is also showing its willingness to involve the private sector in the construction of social housing and is encouraging initiatives in this direction. Following a regional survey aimed at identifying the training needs of real estate developers in the WAEMU zone, the Housing Centre of Excellence has launched a series of training courses (face-to-face and online) for real estate developers.

Also, in recent years, Senegal has undertaken major reforms to establish a relevant regulatory and legislative framework to meet the new requirements of sustainable urban development and above all to align with the State’s will and efforts to reduce the housing deficit. As a part of this, the National Assembly adopted at the end of 2023, Law No. 2023-20 of 29 December 2023 on the Urban Planning Code and Law No. 2023-21 on the Construction Code.

Among the major provisions of these new texts are: the introduction of the principle of social diversity in the construction programmes of collective buildings; the construction of at least 50% of social housing in overall development programmes comprising at least 500 housing units; taking into account the competences of the municipalities in terms of urban planning; and energy efficiency in building construction.

This new framework is added to an arsenal of existing texts and laws in Senegal whose existence has, until now, supported land and real estate production. Law No. 2016-31 of 8 November 2016 on the framework law on social housing, a flagship in the field of affordable housing, establishes an institutional framework encouraging the promotion of social housing. It defines the principles (territorial equity, social diversity),the actors (developers, cooperatives, etc.) and the products.

In the field of rental housing, Government Decree No. 2023-382 (published on 24 February 2023 on the reduction of rents for residential use) aimed to regulate the residential rental market, in response to the exponential increase in rental prices in Dakar over the past few decades. Since the decree came into force, rents have fallen throughout 2023 and this downward trend is maintained, for example in the 2nd quarter of 2024. During this period, prices for new residential leases were down 10.1% year-on-year. The capital, as well as the municipalities of Sicap Liberté, Golf Sud,Yoff, Parcelles Assainies, Mermoz Sacré Coeur and Ngor Almadies have felt this decrease the most.⁵⁶

Dakar is experiencing strong growth in rental demand. The sluggish production in recent years of the two major real estate companies SN HLM and SICAP SA, has accelerated the growth in rental demand. The social rental sector is not yet exploited despite its potential to contribute to the diversification of the offer for young households or those with low or irregular incomes.

It is also necessary to encourage and support social and economic housing programmes, especially those aimed at empowering housing cooperatives and/or self-promotion, including resident and participatory mobilisation, such as the model of renovation and production of affordable housing proposed by the Senegalese Federation of Inhabitants (FSH). Since its creation in 2016, this structure has supported nearly 1 100 households in accessing dignified and affordable housing in the Dakar region.⁵⁷ It is up to the authorities to change the scope of the new financing mechanisms to take into account citizen initiatives aimed at improving housing and precarious neighbourhoods.

Espace Diobass is an ambitious programme to build 6 500 housing units on a plot of nearly 170 ha located near Thiès, 70km from Dakar. The project is the result of a partnership between the Duval Group and the real estate developer “Espace, une Famille, un Toit SA” which has been present in Senegal for about forty years, and holds a long-term lease from the State of Senegal granted on the land title. The first phase involves the construction of 2 016 F3 houses of 64m² extendable in R+1, on plots of 200m² of unit area. The sale price is CFA12 million (US$19 666) and the monthly rent for hire-purchase is set at CFA105 000 (US$172).⁵⁸

The product is quite accessible for a domestic market whose demand is characterised by an informal component with irregular incomes, and a formal component with low incomes. The first group is households earning less than CFA300 000 (US$491) per month and without a bank account, while households in the second group earn CFA315 000 (US$516) at most. The target clientele is mainly low income people and first-time buyers. Thus, the project responds in a relevant and adapted way to the unbanked informal sector.

The programme also includes housing cooperatives of professional groups (firefighters, teachers, police officers, private companies, water and forests, etc.). A minority share of the sales may be reserved for institutional investors or private investors who will be able to buy entire blocks (4 houses).

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.

Alpha Digicredit: https://alpha.sn/
AML Estate Intelligence: https://aml-services.org/
National Agency for Statistics and Demography (ANSD): www.ansd.sn
Banque de l’Habitat du Sénégal (BHS): www.bhs.sn
Caisse des Dépôts et Consignations: https://cdc.sn/
Centre d’Excellence de l’Habitat (CEH): www.ceh-uemoa.org
Directorate for the Regulation and Supervision of Financial Systems Decentralised (DRS-SFD): www.drs.sfd.gouv.sn
Directorate General of Planning and Economic Policies (DGPPE): www.dgppe.sn
Espace Diobass: www.espacediobass.com
Priority Investment Guarantee Fund (FONGIP): www.fongip.sn
Sovereign Fund for Strategic Investments (FONSIS): www.fonsis.org/fr
Phard: https://phard.archidev.org/
Société Nationale des Habitations à Loyer Modéré (SN HLM): www.snhlm.sn
Société Immobilière du CapVert (SICAP S.A): www.sicap.sn
Société d’Aménagement Foncier et de Rénovation Urbaine (SAFRU): https://safru.sn/
UrbaSEN: www.urbasen.org/

1. ANSD. (2024). Provisional report General Population and Housing Census RGPH-5, 2023. https://tinyurl.com/yp2mjz3w (Accessed 30 June 2024). Pg. 42.
2. International Monetary Fund. (IMF). (2024). Press Release No. 24/136.
3. Operational Office for the Monitoring of the Emerging Senegal Plan. (2020). Report on the implementation of the flagship projects and reforms of the Emerging Senegal Plan – 2014-2018. Pg. 6.
4. ANSD. (2024). Final Report. Harmonised Survey on Household Living Conditions (EHCVM II).
   https://tinyurl.com/yc8xdesy (Accessed 1 August 2024). Pg. 7.
5. Ibid. Pg. 4.
6. World Bank (2024). Report on the economic situation in Senegal: Seizing the opportunity. June 2024. Pg. 24.
7. Ibid. Pg. 5.
8. See footnote 1. Pg. 42.
9. ANSD (2024). Chapter 1:State Structure Population RGPH 5 Interim Report, 2023. https://tinyurl.com/46kj8ek9 (Accessed 10 July 2024). Pg. 30.
10. Ministry of Urban Planning, Local Authorities and Regional Planning. (2024). CEPSE – Sector Review 2024. Pg. 23. Unpublished.
11. Presidential Election 2024: Bassirou Diomaye FAYE President Program Document. (Accessed 4 July 2024). Pg. 40.
12. Interview with Mr. Mamadou GUEYE, Technical Advisor to the Chief Executive Officer of the Banque de l’Habitat du Sénégal (BHS). Mortgage Product Designer and Portfolio Management (IFC/AUHF), 18 July 2024, Dakar.
13. World Bank (2021).The global Findex Database 2021. (Accessed 11 July 2024).
14. Central Bank of West African States (2024).Annual report of the WAMU Banking Commission 2023. Pg. 39.
15. Ibid. Pg. 53.
16. Ibid. Pg. 40.
17. DFS Regulation and Supervision Directorate (2024). 2023 Annual Report. https://tinyurl.com/5cyzafnc (Accessed
    13 July 2024). Pg. 18.
18.  International Finance Corporation (2023). Her Home II : Housing finance for women in Ghana, Senegal and Indonesia. (Accessed 13 July 2024). Pg. 27.
19. Ibid. Pg. 26.
20. Financial Afrik (2022). Number 94. Financing of Housing: credit, the tree that hides the forest. Pg. 10.
21. A statistic given by the Director General of BHS, Mr. Bocar SY, as part of the CEH workshop on training in the design of residential real estate projects for real estate developers in the WAEMU zone, held in Dakar on 27 April 2024.
22. Financial Afrik. (2022). Financing Housing: Credit, theTreeThat Hides the Forest. Number 94. (Accessed 13 July 2024). Pg. 10.
23. Habitat Centre of Excellence (2024). Senegal Country Report. Pg. 132. Unpublished.
24. See footnote 12.
25. Ibid. Pg. 150.
26. ANSD. (2024). Interim Report – RGPH5. Chapter Situation – Women. https://tinyurl.com/weasnnxm (Accessed 14 July 2024). Pg. 24.
27. See footnote 1. Pg. 131.
28. Ibid. Pg. 149.
29. ANSD. (2021). Harmonized Survey on Household Living Conditions (EHCVM). https://tinyurl.com/25b3pv4a (Accessed 14 July 2024). Pg. 92.
30. See footnote 29. Pg. 46.
31. See footnote 29. Pg. 118.
32. See footnote 29. Pg. 114.
33. Ibid. Pg. 110.
34. AML Estate Intelligence (2024). Residential rental Senegal. Bulletin of the 2nd quarter of 2024.
35. Online interview with Ahmet LÔ, Founder of AML Estate Intelligence and real estate specialist, on 17 July 2024, Dakar.
36. Centre for Affordable Housing Finance. (CAHF). 2021 Dashboard: Calculating Mortgage and Housing Affordability in Africa. https://housingfinanceafrica.org/
37. See footnote 35.
38. ANSD. (2024). RGPH 5 Interim Report, 2023. Chapter Housing and living conditions of households.
    https://www.ansd.sn/sites/default/files/recensements/rapport/Chapitre%208-%20HABITAT-Rapport-ProvisoireRGPH5_juillet2024.pdf (Accessed 22 July 2024). Pg. 8.
39. Ibid. Pg. 39.
40. Les Ciments du Sahel SA (2024). https://disclosures.ifc.org/project-detail/SPI/8657/ciments-du-sahel (Accessed 22 July 2024).
41. Ibid. Pg. 7.
42. ANSD (2024). RGPH 5 Interim Report, 2023. Chapter Housing and living conditions of households. https://www.ansd.sn/sites/default/files/recensements/rapport/Chapitre%208-%20HABITAT-Rapport-ProvisoireRGPH5_juillet2024.pdf (Accessed 22 July 2024). Pg. 20.
43. See footnote 10.
44. Ibid. Pg. 26.
45. Ibid
46. Ibid. Pg. 25.
47. Ibid. Pg. 18.
48. Ibid
49. See footnote 12.
50. Ibid
51. See footnote 1. Pg. 7.
52. Ibid. Pg. 39.
53. Ibid. Pg. 18.
54. World Bank. (2015). Urban Perspectives. Emerging cities for an emerging Senegal. Pg. 13.
55. See footnote 35.
56. AML Estate Intelligence. (2024). Residential Rentals in Senegal: Q2 2024 Bulletin. https://aml-services.org/actuimmo-senegal/location-residentielle-au-senegal-bulletin-du-2e-trimestre-2024/ (Accessed 18 July 2024).
57. Urbasen. (2024). Senegalese Federation of Inhabitants. https://urbasen.org (Accessed 15 August 2024).
58. See footnote 12.