The European Bank for Reconstruction and Development (EBRD) has committed €9.6 million to support a regional programme aimed at expanding affordable housing finance in WAEMU, a move expected to improve access to home loans in Senegal, Côte d’Ivoire and six other West African countries.
The investment will be channelled through AFINHAB, the regional housing finance institution formerly known as CRRH-UEMOA, which provides long-term refinancing to banks and financial institutions across the West African Economic and Monetary Union (WAEMU).
The funding forms part of AFINHAB’s social bond programme, designed to mobilise long-term capital for housing loans and strengthen access to mortgage financing for households that have traditionally struggled to obtain credit.
The EBRD said its investment will help expand affordable housing finance in WAEMU by increasing the resources available to lenders operating in the region. The programme covers Benin, Burkina Faso, Côte d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal and Togo.
Access to housing finance remains a major challenge across much of West Africa. While demand for homes continues to rise because of rapid urbanisation and population growth, mortgage markets remain relatively small and long-term financing is often scarce.
AFINHAB was established to address that gap by providing liquidity to financial institutions that issue housing loans. Rather than lending directly to borrowers, the institution refinances mortgages originated by banks, allowing lenders to offer longer repayment periods and potentially more affordable financing conditions.
The latest EBRD commitment comes as AFINHAB expands efforts to strengthen affordable housing finance in WAEMU through capital market funding. The institution recently launched a 15-year social bond programme aimed at raising funds for housing development and mortgage refinancing across the monetary union.
According to AFINHAB, proceeds from its social bond issuances are dedicated to supporting housing loans and improving access to decent housing for low and middle-income households. The institution has increasingly turned to bond markets to secure long-term funding that can be channelled into the housing sector.
Development finance institutions have identified housing as one of the region’s most pressing economic and social challenges. Various studies have pointed to significant housing deficits across WAEMU countries, with millions of people lacking access to adequate and affordable homes.
Supporters of the initiative say expanding affordable housing finance in WAEMU could generate benefits beyond the housing sector. Increased mortgage lending can stimulate construction activity, create jobs, support local industries and improve living standards in fast-growing urban areas.
The EBRD’s investment also reflects growing international interest in using social bonds to address development challenges. Social bonds raise capital for projects that deliver measurable social outcomes, including improved access to housing, healthcare, education and essential services.
AFINHAB has attracted backing from several international and regional financial institutions in recent years as investors seek innovative ways to support housing markets in West Africa. The institution has developed refinancing, securitisation and guarantee mechanisms intended to deepen mortgage markets and attract additional private capital.
The new funding is expected to strengthen affordable housing finance in WAEMU at a time when governments across the region are looking for solutions to rising housing demand and limited access to long-term credit.
Policymakers increasingly view affordable housing finance in WAEMU as a critical tool for addressing urban housing shortages and supporting economic development.
For households in Senegal, Côte d’Ivoire, Benin and the wider WAEMU bloc, the success of programmes such as AFINHAB’s social bond initiative could help widen access to mortgage financing and bring home ownership within reach for more families.
