(Business in Cameroon) - During a meeting with local press in the framework of his official visit, Sergio Pimenta, IFC's Vice President for the Middle East and Africa, indicated his institution’s interest in the Cameroonian real estate sector.
“As far as the housing deficit is concerned, the IFC will bring in companies, which will build more houses, and financial institutions that will elaborate mortgage plans to help residents acquire the said houses,” the vice-president said.
The initiative comes at point in the country where access to decent housing is increasingly complex for residents. About ten years ago, the government launched the construction of social housing but the various actions still have a really low impact.
The only thing to know now is which segment the IFC will support. From land acquisition to development, there is a surcharge and lack of a permanent urban development strategy. The government did set guarantee and subsidy mechanisms for mortgage loans but the country’s model seems a bit outdated. In addition, the collaborative initiatives launched by Ecobank and Afriland along with various institutions have not yet provided efficient solutions.
Land access is also a real challenge. The procedures are time-consuming and laborious according to indicators published by the Doing Business 2019. Such a situation can delay projects and overcharges.