Gabon: Facilitating housing projects
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After several years of stalled efforts, Gabon is beginning to see some traction in the effort to overcome its housing deficit. Work is set to begin on a handful of large-scale residential projects and, in a promising move for investors, the government has streamlined the procedure for land ownership.
In May, the newly created National Agency for Urban Planning, Topographical Works and Land Registry (Agence Nationale de l’Urbanisme, des Travaux Topographiques et du Cadastre, ANUTTC) introduced a “guichet unique”, or “single-window” system to simplify the procedure for land purchases. By coordinating with all ministries involved, the single-window is expected to reduce the time required to obtain a title deed from 10 years to only 180 days, as well as cut the number of administrative steps from 134 to 7.
Purchasing land for development purposes has been a slow and problematic process in the past, particularly for individuals and small-scale developers. The new system should dramatically speed up access to property, although a lack of available space in and around the capital remains a challenge.
The ANUTTC was established in 2011 as part of a sweeping effort to overhaul the real estate sector. In June 2011 President Ali Bongo Ondimba led a shake-up of the Ministry of Housing (MoH), replacing most senior officials.
The reform also included the creation of several new bodies and policies: the ANUTTC was created to plan and oversee all land and real estate development projects, to maintain and extend the national land registry, and to facilitate the purchase and transfer of property titles. The introduction of the single-window is the first major reform to come out of this effort.
In addition, a National Housing Council (Conseil National de l’Habitat), which includes public and private sector representatives, was created to design and implement a coherent national housing policy. Finally, a comprehensive urban planning code, SmartCode, was created to direct all future urban expansion. The code will require the planning of integrated construction projects, such as waste management and water systems, and health and educational infrastructure, which will allow for a more sustainable urban development.
The MoH shake-up was intended to eliminate administrative obstacles that have been partially responsible for the lack of progress on the government’s effort to increasing housing availability. Gabon has an estimated deficit of 200,000 homes, with 160,000 units of demand concentrated in the capital. In addition to the evident social complications this causes, the housing shortage gives landowners an incentive to manipulate prices, which could potentially lead to the creation of a housing bubble.
The president announced that the state would construct 5000 new housing units per year beginning in 2010, but little progress has been made until recently. The National Agency for Public Works issued the first round of contracts for housing projects in late 2011, and the state is expected to invest CFA396bn ($763.7m) in such projects over the next five years.
Work should also soon pick up on a major urban development project in Angondjé, just north of the capital. The government has approved a development plan for the area − one of the first to apply the SmartCode – to alleviate pressure in Libreville proper, with several sets of housing options, health and educational infrastructure, administrative centres, police and fire stations, parks, roads and commercial outlets. A number of companies, both domestic and foreign, are expected to begin work in June and July 2012. The MoH recently confirmed that the first 1000 homes should be completed by the end of this year.
Furthermore, in June, the government announced a new project to build 5000 homes in Cap Esterias, roughly 30 km north of Libreville, with financing from the Banque Gabonaise de Développement. The plan is to construct 1000 homes per year from 2013-18. However, like many projects before it, administrative obstacles may slow implementation. The project will only move ahead once an agreement is reached regarding the boundaries of the nearby Raponda Walker Arboretum, so as to avoid potential conflict with the National Parks Agency.
The streamlined regulatory framework has helped underwrite increasing participation from foreign investors, including a number of Asian firms. The India-based RPP Infra Projects, a construction firm, recently secured CFA163bn ($314.37m) in domestic and international financing through the MoH to build 10,000 houses nationwide in 2012-15. Another India-based firm, M3M, has announced plans to build 5000 low-cost housing units over the next two years for an estimated investment of €70m.
While many challenges remain for the sector, a concerted effort on the part of the government to remove some of the more burdensome hurdles has helped strengthen the short- and medium-term forecast, and should help improve the sustainability of the growth spurt the sector saw following the flurry of construction for the Africa Cup of Nations earlier this year.