Across Sub-Saharan Africa, the mortgage market has not been well-developed – making it difficult to identify and implement financial mechanisms that not only expand the mortgage market, but also make it accessible to low-income households. However, when compared to other low-income countries, Niger has one of the lowest costs for formal housing, presenting an opportunity to increase the affordable housing stock at scale.
One example of attempts to increase housing and finance access for low-income communities was a partnership between EcoBank and a nation teachers’ union (SNEN). This partnership financed an affordable housing development intended for teachers, who generally fall into the lowest income bracket of salaried workers. SNEN members are able to open an account with EcoBank, and once they save 10% of the value of the home, they are given access to the land to be used as a guarantee. Once they reach 15-33% of the home value in savings, they are eligible for a loan and the home can be built by a developer.
Source:
World Bank Group. (2015) Stocktaking of the Housing Sector in Sub-Saharan Africa : Challenges and Opportunities. World Bank, Washington, DC.
Link: https://openknowledge.worldbank.org/handle/10986/23358