The International Finance Corporation (IFC) announces a public-private partnership (PPP) project to enhance access to affordable housing in Greater Abidjan, Côte d’Ivoire. The initiative is aimed at benefiting low- and middle-income families and addressing the growing housing deficit in the region.
Advisory Agreement for Mixed-Income Housing
IFC has signed an advisory agreement with the Côte d’Ivoire government to develop a mixed-income housing PPP. The project aims to mobilize private sector investment to construct high-quality housing units in Greater Abidjan, where rapid urbanization and limited credit options have led to a shortage of affordable housing.
Challenges in the Ivorian Housing Market
Côte d’Ivoire faces a significant housing deficit, estimated at 600,000 units in 2017, with an annual increase of 40,000 to 50,000 units. High rental prices and informal settlements failing to meet national building standards contribute to the housing challenges. The PPP project seeks to alleviate these issues.
Government’s Commitment to Affordable Housing
Bruno Nabagné Koné, Côte d’Ivoire’s Minister of Construction, Housing, and Urbanization, expresses the government’s commitment to delivering affordable, high-quality housing in Greater Abidjan. The collaboration with IFC aims to expand private investment to meet the rising demand for affordable housing.
IFC’s Role as Lead Transaction Advisor
IFC will serve as the lead transaction advisor, working with the Ministry of Construction, Housing, and Urbanization to design and structure a commercially viable PPP. The process includes competitive tendering for a private developer to design, finance, build, and maintain housing units. IFC’s advisory role continues until the selection of the winning bidder and signing of project agreements.
Presidential Program for Social and Economic Housing (PPCLSE)
The project aligns with the PPCLSE launched by the government in 2012 and redesigned in 2022. Leveraging recent initiatives, such as the National Housing Agency, the PPP aims to generate 150,000 housing units by 2025. Successful implementation could set a precedent for similar models in Cote d’Ivoire and the wider region.
Financial Support from DevCo
DevCo, a multi-donor Technical Assistance facility affiliated with the Private Infrastructure Development Group, will provide financial support for the project. DevCo plays a crucial role in supporting infrastructure transactions in the poorest countries, contributing to economic growth and poverty reduction.
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Committed to creating markets and opportunities, IFC leverages its capital, expertise, and influence to end extreme poverty and boost shared prosperity.