Senegal is taking a new step in realizing its national strategy for sustainable and inclusive housing. The National Bank for Economic Development (BNDE) and the Social Housing Fund (FHS) signed a memorandum of understanding on Friday, October 31, marking the operational implementation of the Green Fund for Social Housing, an innovative financial mechanism aimed at supporting the ecological transition of the housing sector.
The signing ceremony, presided over by Momath Talla Ndao, Secretary of State for Housing, took place in Dakar in the presence of Mamadou Faye, CEO of BNDE, and Ibrahima Diop, administrator of FHS. This agreement, through a Memorandum of Understanding (MoU), seals a strategic alliance between the banking sector and public institutions to finance projects with high social and environmental impact.
“3 billion CFA francs to build a low-carbon housing model”
By committing to mobilize 3 billion CFA francs (around 4.9 million USD) through the Green Fund, BNDE affirms its ambition to be a driving force for sustainable finance in Senegal. The institution not only plans to provide a dedicated financing line, but also to structure an innovative financial vehicle aimed at attracting long-term resources, particularly from green and climate markets.
“This commitment reflects our belief that green finance can be a concrete lever for social justice and ecological transition,” said Mamadou Faye, CEO of BNDE, highlighting the coherence of this approach with national priorities in terms of sustainability and territorial equity.
The bank also indicates that it will make the technical expertise of its teams available to identify projects that comply with international environmental standards and are adapted to local realities: energy-efficient buildings, local materials, and integration of renewable energies.
“A Green Fund at the heart of the ecological transition”
The Social Housing Fund (FHS), the project initiator, has designed this mechanism as a financing tool for sustainable housing benefiting low-income populations. Its ambition is twofold: to reduce the carbon footprint of the building sector by promoting bio-based materials and increased energy efficiency, on the one hand, and to strengthen social inclusion by making ecological housing accessible to households that have so far been excluded from the real estate market.
This mechanism is based on a multipartite governance: the State, banks, real estate developers, and international technical partners collaborate in a logic of green co-financing.
Resources from climate and carbon mechanisms may also be mobilized, we learn, in addition to public funds and private investments.
“The FHS: guarantor of land and marketing”
The FHS will play a central role in the program’s implementation. It will be responsible for land, ensuring the availability of land for social housing projects; the purchase and marketing of the productions carried out by funded developers; strategic alignment with the National Program for Access to Housing and Urban Renewal (PNALRU), a pillar of public policy in urban planning and territorial equity.
According to Ibrahima Diop, administrator of FHS, “This partnership illustrates our desire to combine financial innovation, social inclusion, and environmental responsibility. It is a strong signal to investors and international partners about the maturity of the sustainable housing market in Senegal.”
“A convergence between economy, ecology, and social justice”
Beyond its financial aspect, this initiative reflects a paradigm shift in housing governance. It is part of an integrated approach where sustainable construction becomes an instrument of inclusive growth and climate resilience, in line with Senegal’s commitments under the Paris Agreement and the Sustainable Development Goals (SDGs).
The alignment between the financial sector, public policies, and actors in the ecological transition creates a virtuous dynamic: cleaner, more accessible, and economically viable housing.
For institutional investors, financial markets, and international partners, the Green Fund for Social Housing is now a platform for sustainable investment with strong potential for social and environmental profitability.
“A decisive impetus for international cooperation”
This BNDE-FHS partnership comes at a pivotal moment, as several multilateral donors, including the African Development Bank (AfDB) and the World Bank, are encouraging the development of national green funds.
By focusing on climate finance and low-carbon construction, Senegal is consolidating its position as a regional leader in environmental innovation and paving the way for new public-private synergies.
“Toward a sustainable architecture of the future”
With this initial financing of 3 billion CFA francs, BNDE and FHS are laying the foundations for a replicable model: housing that reconciles economy, environment, and social equity.
This partnership also symbolizes the emergence of a new development architecture, where each housing unit built becomes a step towards a fairer, more resilient, and more sustainable society.
