SenegalâÂÂs high population growth and migration from the rural areas to Dakar has resulted in the mushrooming of squatter settlements on DakarâÂÂs periphery.
Further, the high costs of construction materials â imported for the most part â combined with prohibitive interest rates â in the range of 8-10% according to BHS, the housing bank â have made housing too expensive for the average Senegalese and for low-income families. As a result, there is a critical shortage of affordable housing, and the Government has estimated at 120,000 the number of units to be built every year in order to meet a growing demand.
Under President Abdoulaye WadeâÂÂs initiative âÂÂone family-one homeâÂÂ, a battery of incentives has been presented to potential homebuilders, as long as the cost of the house does not exceed CFA Franc 7 million ($15,500). They range from providing free land to homebuilders, a 3.3% subsidy to the target buyers of the houses, and tax holidays for imported construction equipment.