Housing Finance for the Poor in Morocco: Programs, Policies and Institutions
This microREPORT provides an overview of the programs initiated by the Moroccan government and donors in the housing finance sector. The government of Morocco started a program called Villes sans Bidonvilles (Cities without Slums) in 2004 to make home ownership affordable for the urban poor. Many donors, including the World Bank, the European Union, AFD and USAID actively supported the government. This initiative has led to innovations in the field of housing finance and provided globally transferable lessons. It has developed creative ways for the government to leverage private banks and developers. Morocco's largest MFIs are playing an increasingly important role in housing finance for the poor. Morocco's experience is of particular interest to the broader industry in three respects. They are:
- Government and USAID use of credit enhancements to create confidence in a new market;
- Role of microfinance in meeting demand for small loans for progressive improvements or down payments;
- Work of ShoreBank International in establishing retail platforms and providing product development and staff training to commercial banks serving slum dwellers.