Through a mixture of equity and debt capital, the African Development Bank (AfDB) has approved a $28.2m injection into Shelter Afrique.
An $8.2m equity injection that was announced last year, was finally disbursed at the beginning of the February 2017. The purpose of the injection is to strengthen Shelter Afrique’s balance sheet and help achieve its objective of providing quality affordable housing in Africa. On the 14th of February 2017, an immediate loan of $20m from the AfDB was also announced to enable Shelter Afrique ‘consolidate the position of the housing specialist for 2017 and beyond.’
Speaking on the new funding, Gabriel Negatu, Director General at AfDB’s East Africa Regional Development and Business Delivery Office explained:
“These new resources show that the African Development Bank is fully committed to the growth and development of Shelter Afrique, which plays a vital and unique role in the development of affordable housing across Africa. Affordable housing is a key issue at the heart of the High 5 priorities for our Bank, namely ‘Improve the quality of life for the people of Africa’.”
The AfDB’s other High 5 Priorities are Light up and power Africa, Feed Africa, Industrialise Africa and Integrate Africa.
Amid press speculation of overstated asset quality and substandard management operations at Shelter Afrique, the institution announced that it will fundamentally improve its governance structure. An independent forensic audit was concluded earlier this year and recommended improvements in policy and processes are expected to be implemented by Shelter Afrique.
Shelter Afrique is a pan-African finance institution that exclusively supports the development of the housing and real estate sector in Africa. It is a partnership between 44 African Governments, the African Development Bank (AfDB) and the Africa Reinsurance Company that seeks to build strategic partnerships and offer a host of products and related services to support the efficient delivery of affordable housing and commercial real estate.