Senegal: €8 million allocated to improve access to housing finance

Apr 03, 2012

The French Development Agency has granted a credit line of €8 million to the Housing Bank BHS in Senegal for financing and developing mortgages in the mid and short term.

The French Development Agency has granted a credit line of €8 million to the Housing Bank BHS in Senegal for financing and developing mortgages in the mid and short term.

According to Bocar Sy, General Director of BHS, this financing will boost the housing market as it will help to refinance short and mid-term mortgages of promoters and consumers with modest revenues.

This loan "will help us develop a low-cost housing sector and refinance mortgages for consumers with an income lower than CFAF 35,0000," he told Les Afriques newspaper.

It should also improve access to housing finance in Senegal, "which is currently hampered by several obstacles", believes Director of the West African Development Bank Abdoulaye Bio Tchané.

He told Les Afriques newspaper that banks and finance institutions do not have resources for financing these loans, which are often long term.

He recommended the creation of a mortgage market in West Africa with an open architecture where securitisation, covered bonds and a mortgage-refinancing fund coexist.

This market would allow banks and financial institutions in the region to benefit from a complete range of finance and refinancing instruments.ADNFCR-2976-ID-801332735-ADNFCR