Housing Finance and Inclusive Growth in Africa: Benchmarking, Determinants, and Effects

C. Nguena, F. Tchana Tchana, A.G. Zeufack | The World Bank

Using a partially constructed panel database of 48 Sub-Saharan African countries from 2000 to 2013, this paper analyzes the structure of housing finance in Africa, its determinants, and its impact on inclusive growth. The findings show that market capitalization and urbanization are key positive determinants of housing finance, and the post-conflict environment is conductive to greater housing finance development. This result suggests that housing finance is driven by standard market forces of demand and supply. In addition, the analysis finds that housing finance development in Africa is not yet an effective tool for reducing economic inequality, at its current, very early stage. However, the paper shows that above a given threshold, housing finance could be efficient at reducing inequality.

Long-Term Finance, Housing Finance & Land Registries
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