Month: July 2019

Nairobi: July 23, 2019– Pan African housing development financier, Shelter Afrique has signed a Memorandum of Understanding (MOU) with the Terwilliger Centre for Innovation in Shelter, the market development/system arm of Habitat for Humanity International, which will see TCIS assist Shelter Afrique in mobilizing capital for affordable housing that will be extended to institutions focusing on provision of housing loans to low – middle income population in Kenya and 43 other country where Shelter Afrique has presence.

The collaboration formalized in Nairobi by Shelter Afrique’s Chief Executive Officer Andrew Chimphondah and Habitat for Humanity’s Associate Director for Capital Markets & Financial Inclusion Ms. Elena Milanovska at a signing ceremony, will majorly focus on the establishment of an incremental building fund for Africa, capacity building in housing microfinance, and technical assistance.

• The Memorandum of Understanding (MOU) signed in Nairobi now paves way for the establishment of incremental building fund to support people who cannot afford commercial mortgages but need decent housing.
• The collaboration will also focus on building capacity for institutions offering housing microfinance and providing technical assistance.

In reference to the MOU, Mr. Chimphondah said the partnership now makes it easier for the two institutions to jointly facilitate efficient and inclusive housing market systems with the main objective of making affordable housing a reality across Africa, more so within the lower end of the housing market.

“Research on housing finance options for Africa conducted by our Centre of Excellence has shown that the penetration of housing mortgage throughout Africa is quite low – meaning that the mortgage might not be the right option for low-middle income population. This partnership with Habitat for Humanity International gives Shelter Afrique an opportunity to add other innovative ways to finance housing development in the continent,” Mr. Chimphondah said.

“Our aim is to work with entities like Habitat for Humanity International to set up incremental building fund to support people who cannot afford commercial mortgages but also need decent housing. We want to give Kenyans and other people in our other 43 member states the opportunity to have a dignified living and we believe this fund will make it easy for such people to access financing to build decent houses in their own area,” Mr. Chimphondah added.

Ms. Milanovska said the partnership with Shelter Afrique was a perfect match, adding that Habitat for Humanity International had established USD100million micro-build fund that supplies debt capital and techni¬cal expertise to help microfinance institutions increase the availability of housing loan products for their low-income customers.

“There is shortage of affordable housing and there is also substandard housing. Habitat for Humanity International is excited to sign this partnership deal with Shelter Afrique as we see a lot of potential in addressing the growing deficit in the provision of affordable housing in Africa. ” Ms. Milanovska said

Ms. Milanovska noted that Habitat for Humanity International had invested more than USD 4 million in Africa from the micro-build fund, adding that the partnership with Shelter Afrique will make it easy for the organization to significantly increase its investment in Africa.

Habitat for Humanity International has operations in 12 countries in Africa including Kenya, Uganda, Tanzania, Rwanda, Ethiopia, Egypt, Cote d’ Ivore, Malawi, Ghana, Zambia, Lesotho and South Africa. Shelter Afrique has presence in 44 countries across Africa.

About Habitat for Humanity

Driven by the vision that everyone needs a decent place to live, Habitat for Humanity began in 1976 as a grassroots effort on a community farm in southern Georgia. The Christian housing organization has since grown to become a leading global nonprofit working in local communities across all 50 states in the U.S., and in more than 70 countries.

For more information, please visit https://www.habitat.org

NAIROBI: June 25, 2019: Pan-African housing development financier, Shelter Afrique and Everest Limited have completed the development of the second phase of Everest Park Apartments, a multi-million-shilling property jointly owned by the two companies.

The mixed-use complex located in Mavoko area along Mombasa road targets the growing low to middle-income population with units selling at KSh.2.4m, KSh4m and KSh 5.5m for one, two and three bedrooms respectively.

• The 200 units developed at a cost of KSh 720 million comprise of one, two and three bedrooms apartments selling at KSh.2.95m, KSh4.95m and KSh 6.5m respectively.

It consists of 60 one-bedroom units, 100 two-bedroom units, and 40 three-bedroom units.

The project is developed by The Everest Park Development, Joint-Venture between Shelter-Afrique and Everest Limited. The two companies own land upon which the project sits. Shelter Afrique further provided debt to the tune of KSh398 million and a standby facility amounting to KSh50 million.

“The completion of Everest Park Apartments Phase II is a continuation and reinforcement of our relationship and strong partnership with Everest Limited and a testimony of joint commitment to the development of affordable housing in Kenya,” said Shelter Afrique Managing Director & CEO Andrew Chimphondah.

In 2011 Shelter Afrique entered into a partnership with Everest Limited and developed Everest Park Phase I. The 240 units were developed at a cost of KSh755 million, marking the beginning of a long-term partnership between the two organizations.

“We believe unit cost of between KSh2.9.5 million and KSh4.95 million though not very affordable is within reach of many Kenyans, especially those in the middle class. Shelter Afrique aim is to make houses as affordable as KSh1.5 million,” Mr. Chimphondah said.

Everest Limited Managing Director James Muriuki said despite the challenges phased with Phase I of the project, the market was reacting positively to the second phase.

“We have sold 96 of the 200 units with one and two bedroom units being on high demand. We are upbeat about the uptake of the remaining units,” Mr. Muriuki said.
The mixed-use complex boasts of a playground for children, parking space facilities and a commercial centre still under construction.

About Everest Limited

Everest Ltd is a Kenyan-owned company specializing in real estate development and construction.
www.everest-ltd.com/

Nairobi: July 22, 2019 – Pan-African housing financier, Shelter Afrique has signed a Memorandum of Understanding with the Government of Liberia, which will see the development of affordable housing units with ancillary facilities at VOA and Ricks Institute in Brewerville, Montserrado County, Liberia at a cost USD30 million when completed.

The 1000 housing units are part of Liberian Government national housing drive aiming for 50,000 to 80,000 housing units across all 15 of Liberia’s Counties.

• The MOU envisages construction of 1000 social housing units in five phase.
• The project is estimated to cost USD30 million when completed.
• Units to sell between USD15,000 and USD25,000 when completed.

The MOU was signed in Nairobi by Shelter Afrique Chief Executive Officer Andrew Chimphondah on behalf of the Company and by Liberia’s National Housing Authority Managing Director Ms. Celia Cuffy-Brown, on behalf of the Government of Liberia.
Speaking at the signing ceremony, Mr. Chimphondah said Shelter Afrique had been compelled by the desire to make a difference in the housing sector in Liberia.

“When we visited Liberia we established that more 70% of the Monrovian population are living in slums dwellings and we resolved to make a difference and this has culminated in the signing of the Public Private Partnership agreement with the National Housing Authority on behalf of the government of Liberia. This MOU has created framework for PPP, with defined obligations from the government of Liberia and Shelter Afrique,” Mr. Chimphondah said.

Commenting on the MOU, Ms. Cuffy-Brown said the partnership help government of Liberia address the housing needs in Liberia substantially by boosting the supply of affordable housing to the lower end of the market. Liberia has a population of 4.8 million people and many studies put the country’s annual housing shortage at 512,000 units.

“Our pro-poor agenda puts affordable housing at the heart of Liberia’s national development programme. With this partnership with shelter Afrique, the government will be able to reduce the cost of housing units considerably and provide houses selling as low as USD15, 000 – which I believe will be affordable to many Liberians,” she said.

Under the MOU framework, Shelter Afrique will provide financial solutions through crowding in funders into the project, advisory services, and share research reports emanating from its Centre of Excellence with the National Housing Authority. The National Housing Authority on behalf of the government of Liberia, on the other hand, has committed to providing land & appropriate infrastructure, and providing sovereign guarantee in favour of all co-lenders associated with the project.
The project which is expected to kick off later this year, will be developed in 5 phases, with at least 192 units expected to be completed in the Phase 1. It has been designed to accommodate 40 blocks with each block comprising 24 units. Each unit shall incorporate 2 bedrooms, a living room, a kitchen and a bathroom.

About National Housing Authority

National Housing Authority is a government of Liberia Agency created by an Act of Lagislature in 1960 intended to provide low income housing. The mandate of NHA is to play a principal role in the implementation of the Government’s housing policies and programmes. Its vision is to develop standards, policies and technology to improve housing through formulating public private partnership to access resources for implementing housing projects in Liberia.