Nairobi, Kenya – Thursday, September 3rd, 2020: Pan African housing development financier, Shelter Afrique has lauded the Federal Republic of Nigeria for its show of confidence in the institution. The organisation confirmed the receipt of the first tranche amounting to USD$9.4 million as part of Nigeria’s capital subscription. The contribution moves Nigeria to the second largest shareholding in the organisation with 14.77 per cent of the shareholding, behind Kenya with 14.87 per cent and ahead of the AfDB at 14.28 per cent.
- Nigeria, has committed $29.3 million to SHAF and becomes the second-largest shareholder in the institution, which is owned by 44 African governments, The African Development and Africa Re.
- The relationship between Nigeria and the institution has been growing in recent years; Nigeria hosts the West African Regional Office, it hosted the 36th Annual General Meeting and has featured prominently in Shelter Afrique activities.
Speaking in Nairobi, Shelter Afrique’s Group Managing Director, Mr Andrew Chimphondah commended the member countries have confidence that the institution is now better governed and has significantly improved its financial performance. As a result, shareholders have supported the recapitalisation of the institution as demonstrated by Nigeria’s significant capital injection.
“We are grateful to the Nigerian government for their continued support and the importance they have placed on affordable housing; we are especially grateful to the Honourable Minister for Works and Housing, Babatunde Fashola for demonstrating this support through honouring this significant payment. We also recognise the role played by the Honourable Minister for State, Engineer Abubakar Aliyu. Additionally, we also appreciate Nigeria’s active shareholder and board participation ” Mr Chimphondah said.
The Group Managing Director continued, “it is especially heartening to see in this age of nationalism that our African countries embrace multilateralism and Pan-Africanism as we collectively seek to address African challenges. Countries like Nigeria, historically, have always been at the forefront of such activities.
The Housing financier confirmed that it had also received capital contributions from other countries; it has received a total of $16 million so far from Lesotho, Mali, Namibia, Nigeria, Rwanda Uganda, Togo, Zimbabwe and Swaziland.
Housing Projects in Nigeria
The organisation is currently considering a USD$3 million equity participation in the newly created Nigeria Mortgage Guarantee Company (NMGC) having already been instrumental in the creation of the Nigeria Mortgage Refinance Company (NMRC). Other housing projects being considered are a Public-Private-Partnership with the Kaduna State 60,000 homes; this project is anticipated to create 300,000 jobs. The organisation is also in the final stages of providing lines of credits totalling USD$16 million to two Nigerian banks to create mortgages that will directly impact 4700 Nigerians.
Housing as an Engine Room for Economic Recovery
Speaking on the current pandemic, Mr Chimphondah noted that Shelter Afrique has been leading the advocacy for housing and infrastructure spending as a tool for post-COVID economic recovery. “We believe that every crisis offers opportunities; we believe the construction of housing is a critical path to recovery after Covid-19. Traditionally, governments have invested in large infrastructure and construction projects. We believe that capital projects are an essential panacea to stimulating African economies. We already see this practice adopted in Nigeria”.
Shelter Afrique is set to explore how construction and infrastructure development can boost the economy during their first-ever virtual Annual Symposium and AGM, which are scheduled to be held on the 15th and 17Th of September 2020 respectively.