Author: Franc Kabu

Nairobi:  04 August 2021- The Government of Tanzania has increased its stake in Shelter Afrique after paying USD2.7 million in additional capital, the pan-African housing development financier has disclosed.

The Additional stake now takes Tanzania’s shareholding to 1.54% up from 0.3% held previously.

Effectively, the contribution now reduces ownership of the top three shareholders with Kenya’s, Nigeria’s and African Development Bank’s shareholdings now standing at 17.78%, 13.27% and 12.83%, respectively.

Thanking the Government of the United Republic of Tanzania, Shelter Afrique Group Managing Director and Chief Executive Officer Andrew Chimphondah said it was gratifying so see the unwavering support renewed confidence by shareholders.  

“We thank the government of Tanzania for choosing to increase her stake in Shelter Afrique despite the prevailing condition, and in particular the Ministers for Housing and finance Honourable William Lukuvi and Honourable Mwigulu Nchemba for making the disbursements – It’s a vote of confidence in the Company.  We are also grateful to other shareholders who have increased their stakes recently,” Mr. Chimphondah said.

In addition to the Tanzania’s contribution the Company has also received additional capital contributions from Kenya (USD 9.92m), Cameroon (USD 3,529,801.29) Mali (USD 2,062,994), Rwanda (USD 1.1m), Uganda (USD 0.08m), Togo (USD 0.58m), Swaziland (USD 0.32m), Ivory Coast (USD 0.57m), and Democratic Republic of Congo (USD 0.5m), bringing the total additional capital receipts to $20.69m within the last six months of 2021.

“We also wish to thank several other shareholders such as Namibia, Zimbabwe Morocco, and Swaziland, Cameroon, Kenya, DRC, Mali, Ivory Coast, Uganda, Rwanda and Togo for their positive response to the call for recapitalization, this continues to show confidence in the strategy of The Company” Mr. Chimphondah said.

Shelter Afrique approved financing in excess of USD 52,246,000 in Tanzania. The Company invested equity into the Tanzania Mortgage Refinance Company (TMRC) in 2014 and has remained an active member.

 

• The facility will fund the Group’s real estate portfolio in Morocco, Ivory Coast and Senegal

The Board of Pan-African housing development financier Shelter Afrique has approved a USD13 million housing loan to Mixta Real Estate PLC. This is for the development of 889 low to middle income housing units in Morocco, Ivory Coast and Senegal.

Once approved by Mixta a USD 3,400,000 (48% project cost) will go to Mixta Morocco to co-finance the 371 uncompleted units; USD 3,000,000 (55% project cost) has been allocated to Mixta Senegal to co-finance the 162 affordable units; and USD 6,600,000 (48% project cost) has been allocated to Mixta Ivory Coast to co-finance 356 social housing units representing the first phase of a large-scale program in Songon.

“The deal with Mixta Real Estate PLC is appealing to us not only because it supports the development of large scale low cost housing in some of our key member states, but also because it stimulates rapid growth in supply of housing units,re-invigorates the development of the mortgage industry, as well as incorporating a sustainable development finance solution that makes the sector attractive to financiers. “By providing this line of credit, Shelter Afrique will help to complete large-scale affordable housing programs in these three member countries,” Shelter Afrique Group Managing Director and CEO Andrew Chimphondah said.

In Ivory Coast, for instance, Shelter Afrique is funding several housing projects and will soon launch the construction of the second phase of a government project for 1520 houses in Yopougon, Abidjan.

Mixta Real Estate Plc is a Pan-African real estate development company headquartered in Lagos, Nigeria with subsidiary operations in Morocco, Tunisia, Senegal and Côte d’Ivoire.

The 5-year facility, which includes a 24-months grace period, will be due for repayment in 2025 once approved by the MIXTA board.