The partnership will address the affordable housing crisis
across AfricaThe World Bank has also extended Ksh22m (USD200,000) in grants
to support Shelter Afrique’s capital market program.
Pan-African housing development financier
Shelter Afrique has entered into a strategic partnership with the World
Bank aimed at addressing the affordable housing crisis evident across
the continent.
The World Bank has also extended a Ksh22m (USD200,000) grant to support
Shelter Afrique’s capital market program.
“We are pleased that the strategy that was approved by the Board is
now bearing the intended fruits through the deliberate creation of
appropriate strategic alliances. We applaud the partnership with the
World Bank. We would also like to invite other global multilateral
financial institutions the opportunity to invest in Shelter Afrique
shares so that they can have access to 44 African countries through the
window of Shelter Afrique. This is critical to address the African
Housing crisis in a commercially viable and sustainable manner”
retorted the newly appointed Shelter Afrique Board Chairman, Dr. Steve
Mainda E.B.S.
Commenting on this great strategic partnership, Shelter Afrique Chief
Executive Officer Andrew Chimphondah said that Company is privileged to
have the support of a premier institution such as the World Bank
expressing confidence in supporting Africa’s leading Pan-African
Housing Developmental Financial Institution.
“We are grateful to the World Bank for offering technical assistance
in support of our successful turnaround program. This assistance will go
a long way in enhancing Shelter Afrique’s institutional, operational
and the technical capacity targeting the reinstatement of our investment
grade credit rating and a strong return to the capital markets. We
appreciate the efforts made by Simon Christopher Walley supported by
Hadija Kamayo to have succeeded in moving us to this important
milestone! This is in consonant with our strategy to drive growth
through the building of strategic partnerships and alliances with key
industry players.,” Mr. Chimphondah said.
EQUITY INJECTIONS
Mr. Chimphondah said the two institutions were working towards a more
long-term partnership with a mix of possible interventions including
support for Member Countries equity injections via country IDA
allocation; direct lines of credit from World Bank, as well as credit
guarantee schemes that will enable Shelter Afrique return to the capital
markets.
The chief Executive said the majority of African countries were already
facing a housing crisis as a result of high population growth, increased
urbanization, poor urban planning, dysfunctional land markets, rising
construction costs, proliferation of informal settlements, and
underdeveloped financial systems.
Research from our Centre of Excellence (CoE) shows that the overall
shortage of housing in Africa is estimated at 56 million housing units.
Out of this, more than 90% are in the affordable housing bracket.
“The solution lies in a well-coordinated and collaborative effort
among all stakeholders, including governments, multilateral
institutions, non-profit organizations, and the private sector. We
believe that this partnership with the World Bank will deepen our impact
on Kenya’s affordable housing value chain, in particular, the supply
side and subsequently help to bring down the housing deficit in the
country and Africa as a whole,” Mr. Chimphondah said.
Shelter-Afrique is a pan African housing finance and development
institution established by African governments to address the need for a
sustainable housing delivery system and related infrastructure projects
in Africa. Shareholders include 44 African countries, the African
Development Bank, and the African Reinsurance Corporation (Africa-Re).
