Good news for housing finance in West Africa

West Africa is facing a severe housing shortage, with the World Bank estimating a deficit of around 3.5 million housing units across the region. One of the biggest obstacles remains limited access to mortgage financing for ordinary households.

Regional financial institutions are now seeking to expand housing finance opportunities through new funding mechanisms. A recent securitization operation led by the West African Development Bank (BOAD) and the Zaka programme aims to provide commercial banks with long-term resources dedicated to home loans.

For banks such as Ecobank, demand for housing loans remains strong. Through five of its subsidiaries in West Africa, Ecobank benefited from 4.5 billion CFA francs raised specifically for mortgage financing.

According to Korédé Odjo-Bella, head of retail banking at Ecobank Côte d’Ivoire, combining securitization with mortgages of up to 25 years will help reduce monthly repayments and make home ownership accessible to more middle-income families.

She said the new financing structure could allow households earning around $1,000 per month, or slightly less, to gradually access properties valued at approximately 60 million CFA francs.

Commercial banks often struggle to offer long-term mortgages because they lack sufficient long-term liquidity. This is where Afinhab plays a key role.

Its chief executive, Yedau Ogoundele, explained that the agency mobilizes long-term resources from financial markets and development partners, then channels them to banks under favorable conditions, including longer maturities and relatively low interest rates.

The objective is to enable banks to lend to households with moderate incomes, including teachers, midwives, and artisans who are often excluded from traditional mortgage markets.

The transaction also attracted international support. Proparco joined the operation as a cornerstone investor.

For Proparco, the deal is particularly significant because it mobilizes local savings and local institutional investors, helping to develop regional capital markets rather than relying solely on external funding.

The securitization was completed in just half a day, a result widely viewed by participants as a strong signal of investor appetite for housing finance in West Africa.