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Shelter Afrique, African Union Sign Landmark MoU on Housing and Urban Development

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Shelter Afrique African Union MoU
ShafDB managing Director Thierno-Habib Hann and Ambassador Albert Muchanga, AU Commissioner for Economic Development, Trade, Tourism, Industry and Minerals, signing the MoU.
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Addis Ababa, Ethiopia – Shelter Afrique Development Bank (ShafDB) and the African Union (AU) have signed a groundbreaking Memorandum of Understanding (MoU) to collaborate on addressing Africa’s critical housing and urban development challenges.

The partnership which confers Shelter Afrique an Observer Status at the African Union, aligns with Agenda 2063 and underscores a shared commitment to ensuring a high standard of living, quality of life, and well-being for all African citizens.

The MoU outlines key areas of cooperation aimed at tackling Africa’s housing deficit, promoting sustainable urban development, and advancing capacity-building efforts. With approximately 53 million housing units required across the continent and a $1.4 trillion financing gap, this partnership will leverage innovative solutions, resource mobilization, and policy development to create lasting impact.

The MoU emphasizes strategic collaboration in a number of areas including  sustainable housing and urban developments to support environmentally sustainable and climate-resilient communities. It also captures the issue of addressing the housing deficit through development of strategies to reduce Africa’s housing gap and improve urban settlements.

Other areas of collaboration are capacity building, resource mobilization, policy development and advocacy, research and technological innovation: and environmental sustainability. The agreement also includes provisions for cooperation with AU sub-bodies such as AUDA-NEPAD and the African Union Peace Fund to harmonise efforts across the continent.

Operationalization of the MOU

To ensure effective implementation, ShafDB and the AU will develop a Joint Action Plan (JAP) outlining specific activities, timelines, and review mechanisms. The collaboration may also include staff secondment arrangements and supplementary agreements to address emerging areas of mutual concern.

Ambassador Albert Muchanga, AU Commissioner for Economic Development, Trade, Tourism, Industry and Minerals (ETTIM) remarked: “We warmly welcome Shelter Afrique Development Bank as one of our strategic collaborators. Together, we shall enhance efforts to unlock Africa’s investable wealth and mobilize it towards meeting the continent’s housing deficit anchored on inclusive and sustainable urbanisation.”

Speaking at the signing ceremony, Mr Thierno-Habib Hann, Managing Director of ShafDB, said: “This MOU marks a significant step forward in our shared vision of sustainable housing and urban development in Africa. As a pan-African multilateral development bank focused on housing and urban development, we are confident that this collaboration with the African Union will scale our ability to create transformative solutions that address the housing deficit and enhance the quality of life for millions.”

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