Project of Social Housing Development in DRC

Sacré Waula∗ Joël K. Kazadi†

April 2022

Contents
1 Objective of the study 1

2 Methodology 1
2.1 Phases of the methodological approach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
2.2 Sampling technique . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

3 Empirical results 2
3.1 Statistical summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
3.2 Data visualization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
3.3 Key learnings from the multiple correspondance analysis . . . . . . . . . . . . . . . . . . . . . 9

4 Concluding remarks 12

1 Objective of the study

According to the 2020 statistical yearbook of the National Institute of Statistics (INS), The Democratic
republic of Congo (DRC) has an estimated population of 98 million, of which nearly 14 million live in
Kinshasa. UN-Habitat estimates the national housing backlog at 3 million units. In recent years, the real
estate sector has developed to meet the housing needs of the high-end market, but the middle class and the
bottom of the pyramid have been marginalized. No government policies or private sector initiatives have
been put in place in decades to address the need for low-cost social housing. This study aims to fill this gap
by offering recommendations based on the observed reality.
As part of this study project in Kinshasa, a survey was organized to find out the interest of the DRC population
in the development of low-cost social housing. This survey was addressed to all the active population of
working age and exercising a pecuniary activity. The objective of the study is to gather information from the
population on the need for low-cost social housing in order to suggest somme solutions to the various housing
problems identified during the survey.

2 Methodology
The general objective of the survey phase was to assess the real needs of the population to acquire low-cost
social housing, as well as to identify possible means that could enable the target population to obtain decent
and comfortable housing. Indeed, there is a strong demand for housing in the DRC, and more particularly in
the provincial city of Kinshasa where, paradoxically, there is a real estate boom with the construction of
luxury buildings reserved for a social category of high standing, to the detriment of the middle class.
∗ sacrwaula@[Link]
† joelkazadi21@[Link]

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The methodological approach of this study is divided into four main phases: (i) data collection, (ii) data
analysis, (iii) presentation of results, and (iv) proposal of recommendations.

2.1 Phases of the methodological approach

• Data collection: Data were collected using a structured survey form (see Appendix) that was sent to
the sampled population located in Kinshasa. The form included both open-ended and closed-ended
questions that allowed for the collection of quantitative and qualitative information.
• Data analysis: Analyses are carried out to highlight the real needs of the DRC population, and of
Kinshasa in particular, to have decent housing in a social setting at low cost. The analysis will take
into account (i) the income of the population; (ii) the professional category; (iii) the type of housing;
(iv) the means of acquiring housing; and (iii) their perception of the housing situation in the DRC.
To do this, we used Descriptive Statistics and Multiple Correspondence Analysis (MCA) to study the
relationships that may exist between the variables selected for the study.
• Results: From the multiple correspondence analysis, we were able to highlight the main factors related
to the population’s demand for low-cost social housing. These are mainly: (i) purchasing power, (ii)
level of education, and (iii) availability of formal employment.
• Recommendations: The results of the analysis allowed us to formulate a conclusion with some policy
implications for the success of the project, with reference to the main factors related to the demand for
social housing.

2.2 Sampling technique

In order to better understand the perception of different people, a survey questionnaire was developed. Using
the “Google forms” platform, we were able to collect qualitative and quantitative data (21 variables in total)
from different categories of people living in Kinshasa. Thus, 140 people constituted our sample and responded
to our survey. Given the constraints related to the amount of data to be collected, we chose the purposive
sampling technique for this study. This technique consisted of selecting individuals from different sectors
of activity and allowed us to capture their opinions on the development of low-cost social housing. This
sample was selected based on the representativeness of individuals in a sector of activity, income, but also
accessibility.

3 Empirical results
This section will (i) provide a statistical summary of the data collected; (ii) browse the data of the survey
using graphical visualization; (iii) present the results of the MCA; and then (iv) highlight the key learnings
from the study.

3.1 Statistical summary

Within the sample, 71% of the target market segment is male and 29% is female. The most represented
age group is 31-35 at 37%, followed by 26-30 at 29% and 36-40 at 13%. The majority of participants are
married and have between 1 and 5 children. It can also be noted that a good number of them do not yet have
children. This is also supported by the fact that the majority (41%) of the target market prefers a property
with at least 3 bedrooms and a good number (39%) prefer a 4-bedroom home.
In addition, 52% of participants have a bachelor’s degree, followed by 47% with a professional qualification.
The survey shows that nearly 90% of the target market is formally employed and the majority of them are
at an entry or middle management level. This position is confirmed by the survey as most of them have a
monthly salary between 500 and 2,000 USD. However, a good number of them are in the senior management
level and earn between USD 3,000 and USD 5,000 per month.

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 Table 1: Statistical summary (1/5)

Sexe Age Niveau_Etudes Situation_Matrimoniale Nombre_Enfants

Femme:41 26-30 :41 Professionnel:64 Célibataire:57 1-5 :72
Homme:99 31-35 :52 secondaire : 2 Marié(e) :82 6-10 : 1
NA 36-40 :18 supérieur :71 NA’s : 1 Aucun:67
NA 41-45 :14 NA’s : 3 NA NA
NA moins de 25 ans: 7 NA NA NA
NA plus de 45 ans : 8 NA NA NA

Table 2: Statistical summary (2/5)

Emploi_Formel Secteur_Activite Fonction Salaire_Mensuel

Freelance: 4 Finance :21 Agent de collaboration:31 1 001-2 000$ :36
Non : 18 Immobilier et construction:14 Agent de maitrise :15 2 001-3 000$ :14
Oui :118 ONG :13 Cadre :53 3 001$-4 000$ : 4
NA Conseil :12 Directeur :18 4 001-5 000$ : 7
NA Banque : 8 Exécutant :23 501-1000$ :39
NA Télécommunications : 7 NA Moins de 500 :33
NA (Other) :65 NA plus de 5.000$: 7

Furthermore, participants who do not own properties pay a monthly rent between 100-300 USD. This data
allows us to calculate the typical value of an affordable property for the target market if they are buying
with mortgage financing. However, it is also important to note that the majority of the market (53%) would
purchase the property with cash, while 47% would prefer bank financing/mortgage.
In addition to the above, 67% of the participants rent single-family homes, 21.4% stay with their parents,
and 10.7% own their property (primary residence). The survey shows that most participants (52%) prefer to
buy a single-family home and a good number of them opt for an apartment (38%).
In terms of preferred property location, 20% of the target market prefer Mbudi, 13% Nsele/Kinkole and 12%
Maluku. This is therefore very important information for our team and we are guided accordingly. It can also
be noted that 52% of the targeted market segment will buy the property as their primary residence while 49%
will buy to rent the property because they consider the locations offered to be so far away from the town.

3.2 Data visualization

The data at our disposal indicates that, in the market, the average Congolese has a more proven preference for
simple houses and apartments, and this is related to the income level of each category. Very few respondents
reported living in a concession or villa, because with the average income of the DRC population, it is almost

Table 3: Statistical summary (3/5)

Autres_sources_revenus Revenu_supplementaire Types_logement_actuel Statut_Occupation

Non :75 100-200$ :23 Concession : 9 Chez les parents:30
Oui :64 201-300$ : 4 Immeuble à appartement :53 Location :95
NA’s: 1 301-400$ : 9 Maison individuelle simple:73 Propriétaire :15
NA 401$-500$ : 9 Villa : 5 NA
NA Moins de 50 : 9 NA NA
NA plus de 500$:19 NA NA
NA NA’s :67 NA NA

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 Table 4: Statistical summary (4/5)

Quartier Loyer_Mensuel Types_logement_prefere Lieu_ideal

Limete : 7 201-300$ :25 Un appartement: 17 Mbudi :28
Macampagne: 7 100-200$ :24 Une maison :123 Nsele/ Kinkole:18
Gombe : 4 301-400$ :17 NA Maluku :17
Funa : 3 601-1,000$ :17 NA Ngaliema :11
Kintambo : 3 Moins de 100:14 NA Gombe : 6
Matonge : 3 (Other) :23 NA Kimwenza : 6
(Other) :113 NA’s :20 NA (Other) :54

Table 5: Statistical summary (5/5)

Nombre_Chambres Pouvoir_Achat Intention_Achat Modalites_Achat

1 chambre : 2 50 000$ :22 Faire louer:68 Comptant :66
2 chambres à coucher:14 70 000$ :25 Habiter :72 Prêt bancaire (hypothèque):74
3 chambres à coucher:57 90 000$ :10 NA NA
4 chambres à coucher:54 Moins de 40 000$:53 NA NA
Plus de 4 chambres :13 Plus de 90 000$ :30 NA NA

impossible for the average person with a monthly income of less than US 5,000 to live in this type of housing.
It should be noted that with the real estate boom in the capital city of Kinshasa, landlords are building more
and more apartment-type housing than single-family homes.

Graph 1 : Types of Housing by Monthly Salary

80

60 1 001−2 000$
2 001−3 000$
3 001$−4 000$
40 4 001−5 000$
501−1000$
Moins de 500
20
plus de 5.000$

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Types of Housing

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The understanding that can be drawn from the graph 2 is that the type of housing corresponds closely to the
function performed by the respondent. In our case, the housing types apartment and single-family house
were more designated for people who occupy the function of manager than for those who work in the field,
which corresponds well to the functions occupied by the congolese middle class.

Graph 2 : Types of housing by Function

80

60
Agent de collaboration
Agent de maitrise
40 Cadre
Directeur
Exécutant
20

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Types of housing

Figure 3 shows that occupation status varies considerably depending on the income level of the respondent.
Those with a modest income still make do with the family home and those with an income of more than
USD 500 are mostly renters, while very few people with a monthly income of more than USD 1000 own a
house in Kinshasa.
Graph 3 : Occupation Status by Monthly Salary

60

1 001−2 000$
2 001−3 000$
40 3 001$−4 000$
4 001−5 000$
501−1000$
Moins de 500
20
plus de 5.000$

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Occupation Status

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If we look at the function of the person, it appears that the status of owner is equivalent to the function of
manager and director. However, it is observed that not as many of them hold this status. The majority of
the respondents with the status of tenant occupy the function of subordinate in their profession.

Graph 4 : Occupation Status by Function

80

60

Agent de collaboration
Agent de maitrise
40 Cadre
Directeur
Exécutant
20

0
s
nt

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Occupation Status

It has been found that the number of bedrooms in a dwelling varies slightly with marital status. However,
married people seem to be the ones who have dwellings with multiple bedrooms, but this almost depends on
the number of children.
Graph 5 : Number of bedrooms by Marital Status
60

40
Célibataire
Marié(e)
NA
20

0
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Number of bedrooms

Married people with 1 to 5 children are the ones who live in houses with 2 to 4 bedrooms. The number of
children has a great influence on the marital situation and that is why families are housed in multi-bedroom

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houses.
Graph 6 : Number of bedrooms by number of children
60

40
1−5
6−10
Aucun
20

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Number of bedrooms

Taking into account the purchasing power and the age group, it appears that people aged 26 and over are
those who have the purchasing power to buy a house. Moreover, women between 26 and 45 years old expressed
this desire to buy a house and on the side of men, those whose age varies between 31 and 35 years old are
more motivated to pay more money for a house, that is to say between 40 000USD and 90 000 USD. While
the older age groups are willing to spend even more money on a house and compared to women in these age
groups.

Graph 7 : Purchasing power by age group

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Femme

Age
5
26−30
31−35
0
36−40
40
41−45
30 moins de 25 ans
Homme

plus de 45 ans
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Purchasing power

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According to the age group, it is observed that the under 30 years old of both sexes intend to acquire a house
with the purpose of renting it. While for the other age groups, men between 31 and 35 years old showed the
majority of the will to acquire a house to live in; compared to women whose age group is between 36 and 40
years old who also showed this same will.

Graph 8 : Purchase intention by age group

Femme Homme

40

30 Age
26−30
31−35

20 36−40
41−45
moins de 25 ans
10 plus de 45 ans

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Purchase intention

Finally, regarding the different age groups, the youngest of both sexes under 40 years of age are willing to
buy a house in cash, while the other age groups have a preference for bank loans. It should be noted that the
banking culture is non-existent in the country and that the youngest are those who do not want to take risks
in taking a loan from a bank because of the banking system and its high rates.

Graph 9 : Terms of purchase by age group

Femme Homme
40

Age
30
26−30
31−35

20 36−40
41−45
moins de 25 ans
10
plus de 45 ans

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Terms of purchase

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In conclusion, from the survey data, it can be appreciated that the target market is primarily young
professionals between the ages of 30 and 40 with growing families of 1 to 5 children. These young professionals
are formally employed and earn reasonable salaries that allow them to contribute between USD 100 and USD
300 per month to the purchase of a property as their primary residence. The ideal property preferred by the
market is a 3-4 bedroom detached house located in either Mbudi, Nsele or Maluku. In general, young adults
are willing to buy a house for as little as USD 40,000, but there are also a good number of people willing to
pay between USD 40,000 and USD 90,000 for a typical property.

3.3 Key learnings from the multiple correspondance analysis

In the previous subsection, the existence of a number of relationships between variables was informally estab-
lished. In this subsection, these links will be investigated much more formally using multiple correspondence
analysis (MCA). MCA is a statistical method that allows to study the relationships that may exist between
several categorical variables.

Graph 10 : Scree plot

22.9%

20
Percentage of explained variances

15

10 9.8%

7.4%
5.5%
5 4.3% 3.9% 3.7% 3.6% 3.5% 3%

1 2 3 4 5 6 7 8 9 10
Dimensions

According to the Kaiser criterion (elbow rule), we can consider the first 2 factorial axes for further analysis,
as they explain more than 30% of the overall inertia. The first factorial axis seems to best synthesize the
modalities of the following variables: (i) Marital status, and (ii) Number of children. As for the second
factorial axis, the two main variables that contribute to its generation are: (i) Age group, and (ii) Monthly
salary. Further details about the contributions of the variables’ modalities in this factorial plan are provided
in Tables 6 and 7.

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Table 6: Main modalities of the 1st factorial axis

Contributions
Chez les parents 10.670764
Célibataire 8.306747
Nombre_Enfants_Aucun 5.992365
Moins de 500 5.427509
Marié(e) 5.375781
Nombre_Enfants_1-5 5.200745
26-30 3.980423
moins de 25 ans 3.737023
Exécutant 3.265247
Femme 3.008085

Table 7: Main modalities of the 2nd factorial axis

Contributions
plus de 45 ans 11.860079
Directeur 8.756975
Loyer_Mensuel.NA 8.107938
Situation_Matrimoniale.NA 6.114734
31-35 5.695986
4 001-5 000$ 5.379042
Propriétaire 5.228277
plus de 5.000$ 4.805254
Immeuble à appartement 3.814705
Loyer_Mensuel_601-1,000$ 3.151465

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Figure 11 confirms the previously established results. On the one hand, marital status and the number of
children, but also the occupation status of the respondent, are remarkably correlated with the first factorial
axis. On the other hand, the respondent’s monthly salary, age and function (job title) are strongly correlated
with the second factorial axis.
Again in light of Figure 11, it appears that an individual’s intention to buy is much more related to his
purchasing power, level of education and the fact that the individual has a formal job. In addition, the
individual’s age group, monthly salary, and job title do not seem to have a strong relationship with purchase
intention.
Graph 11 : Variables map
Dim 2 (9.80%)

0.8

0.6 Age
Secteur_Activite
Loyer_Mensuel
0.4 Lieu_ideal Salaire_Mensuel

Fonction

Statut_Occupation
0.2 Types_logement_actuel
Niveau_Etudes Situation_Matrimoniale
Revenu_supplementaire
Sexe
Nombre_Enfants
0.0
Modalites_Achat
0.0 0.2 0.4 0.6 0.8
Dim 1 (22.92%)

Figure 12 shows that most individuals whose purchase intention is to rent the house have a purchasing power
of over USD 90,000, while those whose intention is to live in the house have an average purchasing power of
USD 90,000. Also, having a formal job predisposes to the intention to rent the house. Respondents who do
not have a formal job therefore prefer to buy the house to live in. Finally, the demand for social housing is
also related to the modalities of the education level variable, as found above.

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 Graph 12 : MCA − Biplot
Situation_Matrimoniale.NA
2

Nombre_Enfants_6−10
plus de 45 ans
Dim2 (9.8%)

1
Niveau_Etudes.NA Intention_Achat
4 001−5 000$
Directeur secondaire Faire louer
plus de 5.000$ Propriétaire moins de 25 ans Habiter
41−45
ConcessionLoyer_Mensuel.NA
Loyer_Mensuel_601−1,000$ 1 chambre
0 Villa

Loyer_Mensuel_501$−600$

−1.0 −0.5 0.0 0.5 1.0

Dim1 (22.9%)

From the above data presentation and analysis, one can have a broad appreciation of the needs, challenges
and solutions for low-cost social housing in Kinshasa. According to the data collected during the survey, more
than 50% of the target market is renting because they cannot afford to buy or build their primary residence.
The fundamental and structural challenges are due to the lack of mortgages and affordable financing options
for the real estate acquisition.

4 Concluding remarks
What could be a solution to the different issues raised above? Our strategy is to establish partnerships with
key players such as local and international institutions. These partners will help finance the construction
costs, secure ideal land & location and facilitate the uptake of the development:
• Partnering with land owners with strategic land for low-cost social housing development;
• Partnering with progressive financial institutions (World Bank, IFC, UN Habitat) in order to fund
construction cost;
• Construction of housing units that are suitable (floor plan & land size) for the targeted market;
• Partnering with Organizations in order to assist the targeted market to purchase the houses on flexible
terms;
• Partnering with Government Institutions like ANAPI etc to get tax exemption on building materials;
• Partnering with Private Businesses in order to fund construction of commercial parts of the development
(supermarkets, schools, hospitals etc);
• Partnering with Construction companies like Polycare for eco-friendly, efficient & cost-effective building
materials.

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