Abidjan, Côte d'Ivoire, June 5, 2023 — Residents in the greater Abidjan area will benefit from a project announced today aimed at improving access to affordable housing for low- and middle-income families through a public-private partnership (PPP) structured by IFC.
As part of an advisory agreement signed on the sidelines of the Africa CEO Forum in Abidjan, IFC will support the government of Côte d'Ivoire in developing the mixed-income housing PPP by mobilizing private sector investment to build high-quality housing units in the greater Abidjan area.
In Côte d'Ivoire, fast urbanization, combined with limited credit for households, has led to a shortage of quality affordable housing— this was estimated to be about 600,000 units in 2017 and rising by about 40,000 to 50,000 units annually. Residents face high rental prices, with many opting for informal settlements that don't meet national building standards.
"The government is committed to delivering affordable, high-quality housing for people living in Greater Abidjan," said Bruno Nabagné Koné, Côte d'Ivoire's Minister of Construction, Housing and Urbanization. "By working with IFC, we will be able to expand private investment and better serve the growing demand for affordable housing, so more people can get access to a home and build a more secure future for their families."
As the lead transaction advisor, IFC will work with the Ministry of Construction, Housing, and Urbanization to design, structure, and competitively tender a commercially viable PPP to identify a private developer to design, finance, build and maintain the housing for a defined period. IFC's advisory role will continue up until the winning bidder is selected by the government and project agreements are signed between the parties.
"Access to affordable, quality housing is essential to social and economic development, and IFC is pleased to support the government of Côte d'Ivoire in its efforts to improve access for low- and middle-income households," said Linda Munyengeterwa, Director of IFC's PPP Transaction Advisory and Corporate Finance. "This project will also help ease urbanization pressure on Abidjan's coastline, serving as a model for innovation and private sector mobilization for other coastal urban centers facing similar challenges in the housing sector."
The project will be part of the Presidential Program for Social and Economic Housing ("PPCLSE"), which the government launched in 2012 and redesigned in 2022. It will leverage other recent government initiatives, such as the National housing Agency, created to promote access to affordable housing in the country. The PPLSE ambitions to generate 150,000 housing units by 2025, and successful implementation of this PPP should create a strong precedent for similar models in Cote d'Ivoire and the wider region to address a significant and continuously widening housing deficit which stands at over 50 million units today across the continent.
The project will be implemented with the financial support of DevCo, a multi-donor Technical Assistance facility affiliated with the Private Infrastructure Development Group. DevCo provides critical financial support for important infrastructure transactions in the poorest countries, helping boost economic growth and combat poverty.
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2022, IFC committed a record $32.8 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.
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