Burkina Faso: BHBF to diversify its mortgage offering

May 21, 2013

The Housing Bank of Burkina Faso (BHBF) has launched a new product called Auto Loan Construction CAP Lafia, which allows people on low or mid incomes to access credit to purchase a plot in order to build a house.

The Housing Bank of Burkina Faso (BHBF) has launched a new product called Auto Loan Construction CAP Lafia, which allows people on low or mid
incomes
to access credit to purchase a plot in order to build a house.

BHBF CEO Pierre Zerbo said on May 14th that the CAP Lafia is also designed to support landowners who find themselves unable to develop their parcel, Le pays reports.

The product has two components: savings and credit. Savings allows the borrower to build up a deposit on a savings account.

In 2011, the International Finance Corporation (IFC) has granted 300 million CFA francs (€457,300) to BHBF bank in order to finance a project aimed at increasing access to housing finance in Burkina Faso, APA news agency reports.

However, experts believe that the housing crisis could continue in Burkina Faso and in the rest of Africa, as a large majority of the population cannot afford a property because incomes are below the level required to secure mortgage financing from banks. The continent also faces a shortage of properties available and a lack of long-term mortgages
sources.

Housing demand continues to increase as Africa urbanises rapidly, but the ratio of mortgage debt outstanding to GDP remains low, averaging around 10 percent, according to figures from the MFW4A report "Financing Africa: Through the Crisis and Beyond"ADNFCR-2976-ID-801588049-ADNFCR