Month: August 2022

Shelter Afrique Appoints New Chief Executive Officer

– Mr. Theirno Habib brings to the Company more than 20-years experience in housing finance, capital markets and structured finance.

Nairobi, Kenya: 15 August, 2022

Nairobi-based pan African housing development financier Shelter Afrique has appointed Thierno-Habib Hann as the new Chief Executive Officer to succeed Mr. Andrew Chimphondah who left the company early this year.

Mr. Hann currently serves as the Asia/Pacific Lead for housing finance at the International Finance Corporation (IFC), based in Bangkok, where he leads the strategy development and implementation of the housing finance program with a portfolio of over USD 2 billion.

He previously held a similar position, in charge of Africa and the Middle East, based in Nairobi.

Commenting on the appointment, Shelter Afrique Chairman Mr. Ephraim Bichetero said the selection process was very competitive, based on merit and competence.

“Mr. Hann has extensive international experience in housing finance, capital markets and structured finance, set-up and management of investment funds with banking and multilateral institutions, spanning over 20 years. He brings with him a wealth of leadership experience in development and investment, sharp insight in real estate landscape and a strong track record of delivery. Over the years, he has developed housing finance transactions in the US, Latin America and Eastern Europe, valued over USD 32 billion,” Mr. Bichetero said.

“He is expected to strengthen governance, be an embodiment of our values and drive the investment strategy of the Company focused on delivering large-scale affordable housing,” He added.

Welcoming his appointment, Mr. Hann said he was excited at the opportunity to lead Shelter Afrique through its next face of growth.

“I’m happy and honoured to take on the new role at Shelter Afrique, particularly as many African countries face significant turning point in their housing agenda. It is an honour to lead this team at this critical moment and together we will work towards harnessing national resources to improve local populations’ living conditions and to achieve Shelter Afrique’s mandate,” Mr. Hann said.

Hann began his career at the consulting firm Arthur Andersen, LLC as a Senior Consultant in Financial Services and Capital Markets in New York City.

LHe has worked at JPMorgan Chase and Goldman Sachs as Manager and Vice President respectively and led investment teams issuing mortgage-backed securities (RMBS/CMO), credit derivatives (CDS) in these organizations.

He also served at the World Bank Group as the Private Sector Development Program Manager in Guinea, responsible for designing and implementing the business climate improvement program, while developing a bankable pipeline of investments and government advisory projects in strategic sectors of the economy.

Habib holds an MBA in Finance & Investments from the Zicklin School of Business, Bernard Baruch, New York City; a master’s degree in Accounting and Finance (M.S.T.C.F) and a bachelor’s degree in Management and Applied Economics (GEA), from Paris IX Dauphine University, with honors.

A native of Guinea (Conakry), Hann is the co-founder of “AngelAfrica” – a pan African investment platform formed to achieve economic prosperity on the continent by building and fostering innovative technological ideas, investors and business mentors.

Mr. Hann will join the organization at the end of his current contract with IFC. In the interim Mr. Muwowo will continue to serve as Acting Managing Director.

Shelter Afrique records US$1.04M in net profit for 2021

– The announcement was made at the Company’s 41st AGM held in Zimbabwe.

– Shareholders also approved the appointment of Mr. Thierno-Habib Hann as the Company’s new Managing Director.

Victoria Falls, Zimbabwe – July 28, 2022

Pan African housing development financier Shelter Afrique has posted an operating profit of US$ 1.04 million up from operating loss of US$ 0.58 million the Company recorded in 2020, backed by impairment recoveries and effective cost control measures.

The Company contained its operating expenses at US$ 8.04 million in 2021 down from US$ 8.44 million in 2020, representing a 10% decline. It also reined in its operating expenses which dropped from US$ 8.35 million in 2020 to US$ 7.71 million in 2021.

The Company’s gross income, however, declined slightly to US$12.09 in 2021, down from US$13.94 recorded in 2020.

Addressing Shareholders at the 41st Annual General Meeting held in Victoria Falls, Zimbabwe, Shelter Afrique Chairman Mr. Ephraim Bichetero said the transformational initiatives undertaken by the Company and its business’ resilience enabled the Company to weather the COVID storm.

“This profit continues to build on Shelter Afrique’s commitment to returning to full Financial Sustainability, one of the Company’s 3 Strategic Goals, along with Enhancing Shareholder Value & Development Impact and Organisational Sustainability. I wish to commend the board, management and staff for their continued efforts towards achieving the desired results ahead of time,” Mr. Bichetero said.

The AGM which kicked off on July 25 under the theme: Climate Change and the Built Environment, in reference to the Glasgow Conference of Parties (COP26), will close on July 30.

Financial Viability

In the 2019-2023 Strategic Plan, the Company projected a return to financial viability by 2020 and overall financial sustainability and profitability by 2023, a feat that it achieved two years ahead of schedule.

“Our 2021 financial performance, despite the macroeconomic and socio-political environment, is an indication that the turnaround plan recommended by the board and approved by shareholders continues to be the north-star on our course to returning to financial stability and viability. As management, we are encouraged by this and look forward to the challenge of the coming years,” said Shelter Afrique Group Ag. Managing Director and Kingsley Muwowo.

During the year under review total assets declined by 5 per cent from US$ 176.68 million in 2020 to US$ 167.31 Million in 2021, attributed to the 100 per cent reduction in settlement of the total debt following the repayment of US$ 34.71 Million.

Liquidity decreased by 33% per cent from US$ 47.41 million in 2020 to US$ 31.59 million in 2021, attributed to significant debt servicing payments on the CFA Bond and DRA debt amounting to US$ 35.87 million. However, the liquidity ratio still remained strong, closing at 19 per cent, which is 4 per cent points above the minimum threshold of 15 per cent.

Shareholder Funds increased by 19 per cent from US$135.74Million in 2020 to US$ 161.60 Million in 2021 due to the new capital subscriptions of US$24.85 million and the profit of US$ 1.04 Million for the year. This increase brings the total paid-up capital by 15 per cent, from US$ 157.29 million in 2020 to US$ 182.14 million in 2021.

“We are grateful to our shareholders for their unwavering support through the continued capitalisation of the Company, with US$ 24 million received in 2021 against a target of US$ 17 million. The receipt of these funds was achieved amidst severe fiscal constraints, and we are conscious of this,” Mr. Muwowo said.

Mr. Muwowo added that the Company would continue to review various capital raising options, including new equity capital and debt options through the issuance of local currency bonds to develop and deepen Africa’s capital markets.

“We recently completed a debut ₦46 billion (US$110.7 million) Series 1 Fixed Rate Senior Unsecured Bond Issuance in Nigeria’s capital market under its ₦200 billion (US$481.3 million) bond issuance programme for housing and urban development in Nigeria. We plan similar bond issuance in East African markets including Kenya, Uganda, Tanzania and Rwanda,” Mr. Muwowo said.

New Managing Director

Meanwhile, Shelter Afrique shareholders have approved the appointment of Thierno-Habib Hann as the company’s new Managing Director. Mr. Hann will replace Mr. Andrew Chimphondah who left the company in February.

Mr. Hann has extensive international experience in housing finance, capital markets and structured finance, set-up and management of investment funds with banking and multilateral institutions. Currently, he is the Asia-Pacific Lead for housing finance & capital markets at the International Finance Corporation (IFC), based in Bangkok and previously in charge of Africa and the Middle East, based in Nairobi.

“The process was very competitive, and Mr. Hann was selected based on merit and competence. He is expected to strengthen governance, be an embodiment of our values and drive the investment strategy of the Company focused on delivering large-scale affordable housing,” Mr. Bichetero said.

Mr. Hann will join the organization once he completes his current contract with the International Finance Corporation. In the interim Mr. Muwowo will continue to serve as Acting Managing Director.