Author: Kevin Njoroge

Nairobi, Kenya: 18 March 2021 – Pan-African housing development financier Shelter Afrique has signed a Memorandum of Understanding (MOU) with the government of Cameroon to contribute to the government’s social housing programme and a hosting agreement for the 40^th Annual General Meeting.

The MOU which is expected to contribute 3000 houses to the government’s social housing programme, was signed in Yaoundé by Shelter Afrique Chief Executive Officer Andrew Chimphondah and Cameroon Minister for Housing and Urban Development, Madame Célestine Ketcha Courtès, during a week-long working mission with the Shelter Afrique Team.

Speaking during the signing ceremony, Madame Célestine Ketcha Courtès assumed the 1^st Vice Chairpersonship of the Shelter Afrique Bureau in 2020 and will succeed Kenya as Chairman during the 40^th Annual General Meeting, lauded Shelter Afrique for its commitment to Cameroon. The minister commended Mr Chimphondah for leading the successful mission to Cameroon and noted that it demonstrated Shelter Afrique’s conviction to invest in Cameroon’s housing industry’s potential.  

“The MOU we’ve signed with Shelter Afrique is a demonstration of the potential of the housing market in Cameroon, but more so it is proof that affordable housing is central to the agenda of the government of the President of the Republic of Cameroon, His Excellency, Paul Biya,” the Minister said, adding that the Government had undertaken to ensure that there would be incentives to encourage participation in the government’s Social Housing Programme.  

On his part, Mr Chimphondah said the MOU signing was very significant. It highlighted Shelter Afrique’s role as a catalyst in the industry and its ability to leverage and syndicate other global funding partners.

“This MOU will provide catalytic funding from Shelter Afrique, who will also be the lead arranger to assist in raising additional financing through the syndication of other Developmental Financial Institutions. This funding will contribute to the delivery of the 3000 houses under the government social housing project in Yaoundé and Douala,” Mr Chimphondah said at the signing ceremony.

40^th Annual General Meeting and Anniversary

The signing ceremony also featured the signing of the hosting country agreement for the 40^th Annual General Meeting, which will be hosted in Yaounde from the 20^th– 26^th of June 2021; the Minister and the 1^st Vice-Chairperson of the Bureau reiterated Cameroon’s commitment to host a unique AGM.

“Under the High Patronage of the President, His Excellency, Mr Paul Biya, Cameroon will be hosting 43 Member countries and global financial institutions to the 40^th Annual General Meeting. We are eager to share the Cameroonian hospitality but, more importantly, to engage with the Finance Ministers and Housing Ministers that will be present to collectively find pragmatic solutions to the housing crisis in Africa during this post-COVID-19 era. Above all, It promises to be a unique AGM”.

Chimphondah adding on the unique nature of the AGM, noted that the AGM coincides with the organisations 40^th anniversary; “In most cultures, 40 is a significant milestone; milestones offer us an opportunity to congratulate ourselves and enjoy our accomplishments. More importantly, they are a moment for us to reflect and consider what happens next. That is why the theme for this year’s AGM is Four Decades of Affordable Housing Policies in Africa: Mapping the Next Forty Years. Our 40^th year will be one of retrospection; We believe as we navigate this new decade and the realities that this pandemic has thrown into sharp relief, there is a need to review Africa’s policy environment. Not merely to measure growth, successes and challenges but, more importantly, to forecast the next forty years to shape policy for our member-states.”

Chimphondah acknowledged the limitation of COVID-19 on travel and gatherings and offered that the AGM will be presented as a hybrid of in-person attendance and virtual attendance. It will be recalled that Shelter Afrique successfully held their first virtual AGM in 2020.

Nairobi: 18 March 2021: SHELTER-AFRIQUE and the AFRICAN SOLIDARITY FUND (ASF) have joined forces through the signing of a partnership framework agreement, which will enable the two institutions to contribute more effectively to the economic development of their common member states.

The collaboration between Shelter Afrique and the FSA is premised on the FSA’s capacity for intervention instruments, notably the financial guarantee (in the form of risk-sharing), and the refinancing with or without extension of the duration of the loans of medium or long term investment projects financed by Shelter Afrique.

Shelter-Afrique is the only pan-African financial institution that exclusively supports the development of the housing and real estate sector on the continent. Shelter-Afrique is owned by 44 African countries, the African Development Bank and the African Reinsurance Corporation (Africa-Re).
The African Solidarity Fund (FSA) is a multilateral financial institution operating in 14 African countries, specialising in guarantees. The FSA’s mission is to work towards economic development and poverty alleviation in its member states by facilitating the financing of investment projects in public, private and micro-finance sectors.

“The majority of African countries are already facing a housing crisis, with the overall housing shortage estimated at 56 million units on the continent. Of this total, more than 90 per cent fall into the affordable housing category. This revelation has redefined our overall strategy as a company, which is now more focused on providing affordable housing in all our member states through a public-private partnership model. “said Mr Chimphondah.

The Managing Director of the FSA, Mr DIALLO, said that “the FSA is an essential contributor to the implementation of structural projects and initiatives that transform member states’ economies.

The objectives of Shelter Afrique and the FSA are to contribute to the economic development of their member countries through the financing of investment projects, the support of microfinance institutions and the development of the real estate sector.

Commenting on the partnership agreement signed between the two institutions, FSA’s Managing Director, Ahmadou Abdoulaye DIALLO, said that “the resolution of this agreement is to provide a framework for cooperation in which Shelter Afrique and FSA will work together to achieve mutual objectives in the common member states”.

“This is an exciting partnership with Shelter Afrique as we will be working together in areas of common interest, concerning medium- and long-term financing operations and the financing of public-private partnership (PPP) operations. “said Mr DIALLO.

Speaking on the partnership, Shelter-Afrique’s Managing Director, Andrew Chimphondah, stressed that “the convergence of the FSA and Shelter-Afrique missions will provide financing, counselling and research solutions in the field of housing, respectively.

Nairobi – Tuesday, March 16, 2021: Pan African housing development financier Shelter Afrique has received USD 2 million (€1,724,397.54) from the Government of Mali, being the full settlement of its capital subscription arrears.Mali becomes the fifth shareholder to settle in full both the 2013 and 2017 capital calls from Shelter Afrique after Zimbabwe ,Lesotho,Morocco and Namibia .

This comes days after Togo’s Government committed to settle its outstanding capital subscription which currently stands at USD103,000. Additionally, the Government of Togo is in talks with Shelter Afrique to increase its capital subscription to 10% in order to secure a permanent seat on the Company’s Board.

Speaking in Nairobi, Shelter Afrique’s Group Managing Director, Mr Andrew Chimphondah, lauded Mali’s government for its show of confidence in the institution and recalled that Mali had often led the way in ensuring that the Company is well capitalised.

“This is a strong show of confidence in Shelter Afrique by member countries that the institution is now better governed and has significantly improved its financial performance. As a result, shareholders have supported the institution’s recapitalisation as demonstrated by Mali’s capital injection and recent contributions from other countries such as Nigeria, Rwanda, Uganda, Togo, Zimbabwe, Swaziland, Morocco, Lesotho, and Namibia,” Mr Chimphondah noted. The Company has in the last few years raised a total of 82 million dollars and continues to advocate for collective action on affordable housing in Africa.

Robust loan pipeline

Mr Chimphondah noted that the capital payment comes at an ideal time for the Company; Shelter Afrique has built a healthy loan pipeline following business resumption in 2019.

“We have built a robust loan pipeline of US$842 million since we resumed processing of new loans in 2019. This means that we require a strong capital base to finance the various housing projects across the continent. Member countries and shareholders honoring their capital obligations very critical to support Shelter Afrique in its quest to deliver decent and affordable homes to All Africans given the gaping housing shortage of 56 million housing units throughout Africa ,” Mr Chimphondah said.

Besides capital subscription, the Chief Executive said the Company was reviewing various capital raising options, including debt options through the issuance of local currency bonds to develop and deepen the capital markets in Africa.

“We are looking at raising an East African bond (key markets like Kenya (to service Kenya mainly and other countries within the East African Region ), Nigeria (for a Naira-denominated bond) and an FCFA bond,” Mr Chimphondah said.

In readiness for return to the capital market, Shelter Afrique recently entered into a strategic partnership with the World Bank. The latter extended a Ksh22m (USD200,000) grant to support the Company’s capital market program. The funding will enhance Shelter Afrique’s institutional, operational and technical capacity targeting the reinstatement of the Company’s investment-grade credit rating and a strong return to the capital markets.

Shelter-Afrique is a pan African housing finance and development institution established by African governments to address the need for a sustainable housing delivery system and related infrastructure projects in Africa. Shareholders include 44 African countries, the African Development Bank, and the African Reinsurance Corporation (Africa-Re).