IFC Backs Affordable Housing Project in Côte d’Ivoire With $27 Million Loan
Table of Contents
- 1. IFC Backs Affordable Housing Project in Côte d’Ivoire With $27 Million Loan
- 2. Addressing the Housing Shortage in Abidjan
- 3. Strategic Partnership for Urban Development
- 4. IFC’s Commitment to Sustainable development
- 5. IFC’s Extensive Portfolio in Côte d’ivoire
- 6. The Broader Impact
- 7. Looking Ahead
- 8. What other policy measures, beyond direct investment, could effectively address the affordable housing crisis in West Africa?
- 9. Affordable Housing in Côte d’Ivoire: An Interview with Development Expert, Dr. Aminata Diallo
- 10. The importance of Affordable housing Investments
- 11. Assessing the Impact of the IFC’s Investment
- 12. The Role of South-South Partnerships
- 13. Sustainability and Long-Term Impact
- 14. Addressing the needs of Lower-Income Families
- 15. A Question for Our Readers
Abidjan, Côte d’Ivoire – March 10, 2025 – In a meaningful move to address teh affordable housing deficit, the International Finance Corporation (IFC) announced a $27 million loan in West African CFA francs to Douja Promotion Groupe Addoha Côte d’Ivoire (Addoha CIV).This marks IFC’s first direct financing for a property developer in West africa and aims to support the construction of approximately 5,600 affordable housing units in the Greater Abidjan area.
Addressing the Housing Shortage in Abidjan
Côte d’Ivoire, especially the Greater Abidjan region, faces a severe housing shortage. Rapid population growth, urbanization, and migration contribute to this challenge. The new housing development hopes to provide quality homes for more than 23,000 people and alleviate the scarcity of available housing units.
- Lower-Middle to Middle-Income: 4,600 houses
- Lower-Income: Up to 1,000 houses
Strategic Partnership for Urban Development
addoha CIV, a subsidiary of Moroccan-based real estate developer Douja Promotion Groupe addoha, will spearhead the construction. This partnership highlights the increasing role of South-South investments in driving economic growth across Africa.
According to anas Sefrioui, President of Douja Promotion Groupe Addoha, “The partnership with IFC enables the acceleration of urban development initiated by Addoha Côte d’Ivoire in the urban municipality of Attecoubé, specifically in Locodjoro. In this way, we strengthen our commitment to delivering high-quality and affordable housing to meet the needs of Ivorian families. Together, we are building a better future.”
IFC’s Commitment to Sustainable development
The IFC’s investment is a testament to its commitment to supporting sustainable development and improving living conditions in Côte d’Ivoire. The loan is supported by the International Development Association (IDA) Private Sector Window local Currency Facility (PSW LCF), enabling a longer-tenured local currency loan, which is crucial for the project’s financial viability.
Sérgio Pimenta, IFC’s Vice President for Africa, emphasized that “This investment demonstrates IFC’s commitment to supporting sustainable development and improving living conditions in Côte d’Ivoire. By mobilizing private investment, we are helping bridge the growing housing supply gap for low- and middle-income households and contribute to the country’s socioeconomic development. It is also a prime exmaple of how Moroccan firms, like Addoha Group, leverage their competitive edge to drive development and economic growth in Africa, underscoring IFC’s commitment to South-south investments and regional integration.”
IFC’s Extensive Portfolio in Côte d’ivoire
As of January 2025, the IFC has an active investment portfolio of $761 million in Côte d’Ivoire. These investments span various sectors, including:
- Housing
- Agricultural Value Chains
- Infrastructure (including digital infrastructure)
- Capital Market Development
- Health
- Creative Industries
- Access to Finance for SMEs
The Broader Impact
This investment not only aims to provide affordable housing but also contributes to the socioeconomic development of Côte d’Ivoire. By addressing the housing deficit and supporting local businesses, the IFC and Addoha CIV are fostering a more stable and prosperous environment.
For instance, the construction phase alone will create numerous jobs directly and indirectly, stimulating local economies and enhancing skills development within the construction sector.
Looking Ahead
The IFC’s support for Addoha CIV marks a pivotal step in addressing the affordable housing crisis in Côte d’Ivoire and sets a precedent for future investments in the region.The success of this project could serve as a model for other West African nations facing similar challenges.
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What other policy measures, beyond direct investment, could effectively address the affordable housing crisis in West Africa?
Affordable Housing in Côte d’Ivoire: An Interview with Development Expert, Dr. Aminata Diallo
Archyde recently covered the IFC’s $27 million loan to Addoha CIV for affordable housing in Côte d’Ivoire. We sat down with Dr. Aminata Diallo, a leading expert in African urban development, to get her perspective on this important investment and its potential impact.
The importance of Affordable housing Investments
Archyde: Dr. diallo, thank you for joining us. The IFC’s recent investment in affordable housing in Côte d’Ivoire is making headlines. Could you elaborate on why these projects are so crucial for countries like Côte d’Ivoire?
Dr. Diallo: Thank you for having me. Investments like this are absolutely vital. Côte d’Ivoire, like many West African nations, is experiencing rapid urbanization. This growth places immense pressure on housing resources,resulting in a significant affordable housing deficit. Without adequate housing, cities face challenges related to sanitation, public health, and overall socioeconomic stability. Affordable housing initiatives address these issues head-on, fostering more inclusive and enduring urban development.
Assessing the Impact of the IFC’s Investment
Archyde: The IFC’s loan aims to support the construction of approximately 5,600 affordable housing units. How significant is this number in addressing the housing shortage in the Greater Abidjan area?
Dr. Diallo: While 5,600 units is a ample contribution, it’s crucial to remember that the housing deficit is considerable. Recent estimates suggest that Abidjan needs significantly more affordable units to meet the current demand.This project represents a positive step and, more importantly, it sets a precedent for future investments.it demonstrates that affordable housing is a viable and attractive sector for international investors like the IFC.
The Role of South-South Partnerships
Archyde: The article highlights the partnership between the IFC and Addoha CIV, a subsidiary of a Moroccan-based real estate developer. What are your thoughts on the increasing role of South-South investments in African development?
Dr. Diallo: South-South partnerships are proving to be increasingly valuable. Companies like Addoha bring relevant experience and expertise to the table – experience gleaned from tackling similar challenges in their own regions. This shared understanding often leads to more effective and sustainable solutions. Furthermore,these collaborations foster regional integration and knowledge transfer,benefiting both the investor and the host country.
Sustainability and Long-Term Impact
Archyde: Beyond simply constructing houses, what role does sustainability play in projects like this, and what long-term impacts can we expect to see in Côte d’Ivoire?
Dr. Diallo: Sustainability is paramount. This encompasses not only environmentally friendly construction practices but also the long-term affordability of the homes for residents. Factors like access to basic services (water, sanitation, electricity), proximity to employment opportunities, and community infrastructure are all essential. Successfully addressing these factors will lead to thriving communities, increased economic activity, and a more equitable society. Moreover, projects that incorporate sustainable building materials and energy-efficient designs contribute to a greener urban environment.
Addressing the needs of Lower-Income Families
Archyde: The project outlines the construction of both lower-middle to middle-income and lower-income houses. How important is it to cater to the diverse income levels within the community?
Dr. Diallo: It’s absolutely critical. Affordable housing isn’t just about providing shelter; it’s about creating inclusive communities. by catering to diverse income levels,these projects can promote social cohesion and prevent segregation.Moreover, it ensures that the housing needs of the most vulnerable populations are met. A balanced approach, that considers the needs of all income groups, is essential for the long-term success and sustainability of these initiatives.
A Question for Our Readers
Archyde: Dr. Diallo, this is a fantastic and thought-provoking perspective.To our readers, what other measures do you think are necessary to effectively address the affordable housing crisis in West Africa? Share your ideas in the comments below!
Dr. Diallo: Thank you for having me. It’s been a pleasure.
