Djibouti to enjoy access to affordable housing in World Bank Project Expansion

Djibouti, the tiny horn of African nation, will begin to enjoy access to affordable housing with the World Bank approval of a US$15 million in credit from the International Development Association (IDA). The project is to help the country tackle rapid population growth and urbanization

In a World Bank’s expansion program for the poorest countries, Djibouti which population in recent time is growing with urbanization drive is among the captured countries to gain access to affordable housing, according to Boubacar-Sid Barry, World Bank Resident Representative in Djibout.

Barry said the project make mortgage loans available to the low-income individuals which can support housing microfinance as well as turn rent-to-own contracts into mortgage loans.

This financial innovative will equally give poorer households opportunities to construct their own homes in a cost-effective system. Also, the policy provides for self-built homes to beat substandard against climate-induced floods and fires.

He said “The lack of available finance has been a major bottleneck for lower income families who want to own their own home. This new credit, along with financing from private banks, will help people to build better lives for their families and communities,…Not only does a home offer security, it also provides collateral that can be leveraged to build other economic opportunities, which in turn lead to a rise in income,”

The population growth of the mostly French- and Arabic-speaking country of dry shrublands since 1960s has been around 4.2 percent each year leading to greater urbanization, with more than 78 percent of Djibouti’s population currently living in urban areas.

With the current population of 1,024,221 as of Wednesday January 11 2023, the increased demand on the housing market, with low-income households largely not captured in mortgage and home-building sector, World Bank is therefore expanding its financial scope to about 2,000 low-to-middle income households with affordable mortgage loans partially guaranteed by the guarantee fund.