The present operation consists in the granting of a EUR 10 million loan to the "Caisse regionale de refinancement hypothecaire (CRRH)", for 15 years, with a 3-year grace period. It should be accompanied by co-financing from the Africa Growing Together Fund (AGTF) of EUR 5 million on the same terms as the African Development Bank. The proceeds of the loans would be exclusively dedicated to the financing of affordable housing loans granted by CRRH's shareholder banks to low and middle income populations and for an amount not exceeding CFAF 15 million (i.e. EUR 22,866). This operation was designed to meet the major challenge of housing induced by high population growth and accelerated urbanization. Indeed, almost all the countries of the West African Economic and Monetary Union (WAEMU) have decided to promote housing through programmes aimed at facilitating access to affordable housing through the promotion of supply. To meet the strong demand for housing loans in the region, CRRH finances housing loan portfolios issued by its 55 shareholder banks by raising long-term resources on the regional bond market and from development finance institutions (DFIs) to target and reach low and middle-income populations. The project is expected to contribute to alleviating the housing financing constraints faced by major mortgage lenders, as well as increasing the availability of liquidity and the maturity of the mortgage market in the WAEMU region.
The operation's objective is to help develop the mortgage market in WAEMU member countries through a financing package granted to CRRH exclusively for financing affordable housing loans of up to CFAF 15 million (about EUR 22,866) granted by CRRH's shareholder banks to low and middle-income classes.
The primary beneficiary of this operation is the "Caisse regionale de refinancement hypothecaire (CRRH)". It will subsequently on-lend the resources raised to the shareholder banks in the form of loans to finance their mortgage claims.
ACCOUNTABILITY MECHANISM OF AfDB
The Independent Review Mechanism (IRM), which is administered by the Compliance Review and Mediation Unit (CRMU), is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an African Development Bank (AfDB)-financed project. If you submit a complaint to the IRM, it may assist you by either seeking to address your problems by facilitating a dispute resolution dialogue between you and those implementing the project and/or investigating whether the AfDB complied with its policies to prevent environmental and social harms. You can submit a complaint electronically by emailing firstname.lastname@example.org, email@example.com, firstname.lastname@example.org, and/or email@example.com. You can learn more about the IRM and how to file a complaint at https://www.afdb.org/en/independent-review-mechanism/.