Shelter Afrique Secures Kes 22M World Bank Grant to Support Its Capital Markets Program
Pan-African housing development financier, Shelter Afrique, has secured Kes 22 million ($200,000) to support its capital market program. The grant is expected to help the financier addressing the affordable housing crisis through mobilizing funds through the bond market to bridge the housing deficit in Africa.
Data shows that the continent is facing an annual housing deficit of 56 million units of which more than 90 percent are in the affordable housing category.
“This assistance will go a long way in enhancing Shelter Afrique’s institutional, operational, and the technical capacity targeting the reinstatement of our investment grade credit rating and a strong return to the capital markets,” said Andrew Chimpohndah, Shelter Afrique Chief Executive Officer.
According to Chairman Dr. Steve Mainda the latest financial backing will be critical in addressing the housing crisis in African through a commercially viable and sustainable manner.
“We applaud the partnership with the World Bank. We would also like to invite other global multilateral financial institutions the opportunity to invest in Shelter Afrique shares so that they can have access to 44 African countries through the window of Shelter Afrique,” Mainda added.
Shelter Afrique expects fresh equity injection from Member Countries via country IDA allocation, direct lines of credit from the World Bank, as well as credit guarantee schemes to enable it to return to the capital markets.
According to Chimphondah, the majority of African countries are already facing a housing crisis as a result of high population growth, increased urbanization, poor urban planning, dysfunctional land markets, rising construction costs, the proliferation of informal settlements, and underdeveloped financial systems.
“The solution lies in a well-coordinated and collaborative effort among all stakeholders, including governments, multilateral institutions, non-profit organizations, and the private sector. We believe that this partnership with the World Bank will deepen our impact on Kenya’s affordable housing value chain, in particular, the supply side and subsequently help to bring down the housing deficit in the country and Africa as a whole,” Mr. Chimphondah said.