Nigeria has committed to pay the full capital arrears of $28.7 million in Shelter Afrique in four instalments starting January 2022.
In September 2020, the company received $$9.4 million from Nigeria. The contribution moved Nigeria to become the second largest shareholding in the organisation with 13.27% of the shareholding, behind Kenya with 17.78% and ahead of the AfDB at 12.83%.
“This is a major milestone which is set to propel Nigeria to become the largest shareholder in Shelter-Afrique when the country meets its capital commitment. This is a strong testament of the strong shareholder commitment and support of the company’s Board and Management.” Shelter Afrique Group Managing Director and CEO Mr. Andrew Chimphondah
The company is planning to raise $500million in 2022 to support its affordable housing projects in Nigeria.
Mr. Chimphondah noted that Nigeria was a critical and strategic market for the company, adding that the funds realized from the bond issue will go a long way in address affordable housing shortage in the country, now estimated at 17 million units against the continent’s 56 million units.
Shelter Afrique is a pan-African housing financier owned by 44 member states, including Kenya, the host nation, the African Development Bank, and Africa Re, to address the need for a sustainable housing delivery system and related infrastructure projects in Africa. The firm has also invested in Kenya Mortgage Refinance Companies (KMRC).
The company’s mandate is to provide financing through debt, quasi-equity, and equity to both public and private institutions for housing and urban infrastructure projects in its member countries.