The African Development Bank to fund affordable housing in Africa

The African Development Bank to fund affordable housing in Africa

The African Development Bank expended an equity investment of US $8.2 million in Shelter Afrique, a Development Finance Institution investing in affordable housing in Africa.

It is owned by 44 African nations, together with the African Development Bank and African Reinsurance Corporation as shareholders. The Bank announced that it is also organizing for a pressing loan of US $20 million to the company to secure the position of the housing specialist for 2017 and beyond.

“These new resources show that the African Development Bank is fully devoted to the growth and development of Shelter Afrique, which plays a fundamental and exclusive role in the development of affordable housing across Africa. Affordable housing is a chief matter at the heart of the High 5 priorities for our Bank, namely ‘Improve the quality of life for the people of Africa.’

At the same time, the African Development Bank takes matters of governance seriously. With the strong procedures taken by Shelter Afrique to better its governance and the support of its shareholders, the company can shift to the next stage of its development,” said Gabriel Negatu, Director General at AfDB’s East Africa Regional Development and Business Delivery Office.

The African Development Bank contributed in Shelter Afrique’s Extraordinary General Meeting which was held on January 31, 2017 in Nairobi.

At the EGM, shareholders current collectively decided to pay up their share capital commitments of roughly US $116 million as soon as feasible or to face momentary suspension from membership if not complete by the end of 2017. With additional equity support, Shelter Afrique will be in a stronger position to finance an increasing number of projects whether directly or indirectly.

Shelter Afrique has announced that it will essentially better its governance structure. Numerous interim executive managers are being contracted by Shelter Afrique’s Board to perk up financial management and governance.

The Board of Shelter Afrique will also take fitting disciplinary actions to tackle the irregularities and inadequacy identified in the forensic audit report.