Pan African housing development financier, Shelter Afrique has received USD$9.4 million (Ksh1 billion) from the Federal Republic of Nigeria, being the first tranche of the US$ US$29.3 million (Ksh3.2bn) the country has committed in additional capital subscription.
The contribution moves Nigeria to the second largest shareholding in the organization with 14.77 percent of the shareholding, behind Kenya with 14.87 percent and ahead of the African Development Bank (AfDB) at 14.28 percent.
The Housing financier confirmed that it had also received further US$6.6 million (Ksh715.4 million) in additional capital contributions from Rwanda, Uganda, Lesotho, Mali, Namibia, Togo, Zimbabwe, and Swaziland.
Speaking in Nairobi, Shelter Afrique’s Group Managing Director, Andrew Chimphondah lauded the government of Nigeria for its show of confidence in the institution and a stamp of approval for the organisation’s financial turnaround.
“We are grateful to the Nigerian government for their continued support and the importance they have placed on affordable housing. We are especially grateful to the Honourable Minister for Works and Housing, Babatunde Fashola for demonstrating this support through honouring this significant payment. We also recognise the role played by the Honourable Minister for State, Engineer Abubakar Aliyu. Additionally, we also appreciate Nigeria’s active shareholder and board participation,” Mr Chimphondah said.
The Group Managing Director continued, “It is especially heartening to see in this age of nationalism that our African countries embrace multilateralism and Pan-Africanism as we collectively seek to address African challenges. Countries like Nigeria, historically, have always been at the forefront of such activities.”
“This is a strong show of confidence in Shelter Afrique by member countries that the institution is now better governed and has significantly improved its financial performance. As a result, shareholders have supported the recapitalisation of the institution as demonstrated by Nigeria’s significant capital injection and contributions from Lesotho, Mali, Namibia, Nigeria, Rwanda Uganda, Togo, Zimbabwe and Swaziland,” Mr. Chimphondah said.
Housing Projects in Nigeria
The organisation is currently considering a USD$3 million (Ksh325.2 million) equity participation in the newly created Nigeria Mortgage Guarantee Company (NMGC) having already been instrumental in the creation of the Nigeria Mortgage Refinance Company (NMRC).
Other housing projects being considered are a Public-Private-Partnership with the Kaduna State 60,000 homes in Nigeria. This project is projected to create 300,000 jobs.
The organisation is also in the final stages of providing lines of credits totalling USD$16 million (Ksh1.7 billion) to two Nigerian banks to create mortgages that will directly impact 4700 Nigerians.
Recovery From COVID-19
Speaking on the current pandemic, Mr Chimphondah noted that Shelter Afrique has been leading the advocacy for housing and infrastructure spending as a tool for post-COVID economic recovery.
“We believe that every crisis offers opportunities; we believe the construction of housing is a critical path to recovery after COVID-19. Traditionally, governments have invested in large infrastructure and construction projects. We believe that capital projects are an essential panacea to stimulating African economies. We already see this practice adopted in Nigeria,” he said.
Shelter Afrique is set to explore how construction and infrastructure development can boost the economy during its first-ever virtual Annual Symposium and AGM, which are scheduled to be held on September 15 and September 17 2020 respectively.