Housing Finance for the Poor in Morocco: Programs, Policies and Institutions

In 2004, the government of Morocco embarked on an ambitious program entitled Villes sans Bidonvilles (Cities without Slums) to make homeownership affordable for the urban poor. The government was supported actively by many donors, including the World Bank, the EU, AFD and USAID. This initiative has led to innovations in the field of housing finance, and provided globally transferable lessons. Creative ways have been developed for the government to leverage the role of private banks and developers, for example by providing guarantees to banks that lend for housing to lower-income people. In parallel, Morocco's largest microfinance institutions are playing an increasingly important role in housing finance for the poor. This microREPORT provides a general overview of the programs initiated by both government and donors in the housing finance sector. The study is qualitative rather than quantitative, and seeks to present housing finance for low-income communities within the overall context of Morocco's housing policy, programs, and institutions.