Category: news-room-2021

Shelter Afrique’s results after participation on the 11th Peer Review of the AADFI member-institutions with the Association’s Prudential Standards, Guidelines and Rating System (PSGRS) for the year 2021.

In line with the Company’s Strategy 2021- 2025 and Strategic Goal (SG) no. 3 on Organizational sustainability where we shall continuously improve operational excellence by continuously self-evaluating ourselves against our peers in the DFI space. Shelter Afrique is a member of Association of African Development Financing Institutions (AADFI) and regularly participates in the Peer Review with the Association’s PSGRS.

What is Prudential Standards, Guidelines and Rating Systems (PSGRS)?

The Prudential Standards, Guidelines, and Rating System (PSGRS) was developed 10 years ago by the AADFI, with the support of the AfDB, as a tool for strengthening the African Development Finance institutions (DFIs).

The tool has been useful to DFIs in assessing their areas of weaknesses and strengths with the view to reinforce the strengths and address the weaknesses. The PSGRS has also provided a regulatory guide for various DFI supervisory authorities in many African countries and served as a useful instrument in transforming African DFIs from “non-performing” to “performing” DFIs. The PSGRS has gained acceptance and recognition as an important instrument for strengthening the African DFIs.
SHAF participated in the 11th Peer Review of the AADFI member-institutions with the Association’s Prudential Standards, Guidelines and Rating System (PSGRS) for the year 2021. SHAF emerged as one of the top DFIs in Africa with an assigned Compliance Index of 91% (the very high compliance zone (80% and above) having being assessed on its Governance, Policies, Strategies and Procedures.

Nairobi, Kenya- 21 September 2021 – Pan-African housing development financier Shelter Afrique has fully paid commercial debts owed to eight lenders, giving the company the leverage to underwrite new debt.

In 2018, Shelter Afrique signed a Debt Restructuring Agreement with the eight lenders – six DFIs and two commercial banks – to restructure its debt with a new 5 – Year tenor to run from June 2019 to June 2024.

The USD186 million (including accrued interest) owed to African Development Bank, Agence Française de Developpement, Commercial Bank of Africa, European Investment Bank, German KFW, Ghana International Bank, CFA-Banque Ouest Africaine de Development, and Islamic Corporation for Development was fully repaid three years ahead of schedule.

“Despite Debt Restructuring Agreement giving us a window to make full loan repayment by June 2024, we successfully repaid all the loans by June 2021. This was possible due to the new structures we put in place to deal with bad debts and loan recoveries as part of our turnaround plan. This now affords us the ability to underwrite new business and debt without constraints and legacy matters. For instance, based on our current Equity Capital base of USD 155M and a debt-equity ratio of 0%, we can instantly raise new debt of up to USD 465 million,” Shelter Afrique Group Managing Director and CEO Andrew Chimphondah said.

The company has also repaid a bond floated on the Nairobi Stock Exchange between 2013 and 2018.

Return to market

Mr Chimphondah noted that following the development, Shelter Afrique now plans to return to the capital market to raise KES125 billion (USD1.25 billion) in local-currency bonds by the end of the year.“With the debts fully retired, we now intend to mobilise a local-currency equivalent of USD500 million each from Nigeria and East Africa, as well as USD250 million from French-speaking African nations. These will be crucial in funding our demand-side pipeline of as much as USD1 billion which we are currently developing,” Chimphondah said

Mr Chimphondah added that besides the bonds, Shelter Afrique was exploring further shareholder financing, noting that the Company was already in talks with some keen organisations and countries who share a similar commitment to affordable housing in Africa.

“In the past few months, we have raised a significant amount from our current shareholders, admitted a new shareholder (Fonds de Solidarité Africain -FSA), and resolved to open a new class C group of shareholding for non-African entities to widen our shareholding and capital resource bases,” Mr Chimphondah said.

Nairobi – Kenya: 17 August 2021: The African Solidarity Fund (ASF), based in Niamey, Republic of Niger, has become the 47th shareholder of Shelter-Afrique by subscribing to the company’s capital. This has increased pan-African financing for housing development.

Speaking at the signing of the instrument of accession by FSA in Nairobi, Shelter-Afrique Chairman, Dr. Steve Mainda, said the decision to admit the African Solidarity Fund as a shareholder followed the unanimous approval of shareholders at the 40th Annual General Meeting of the Company held in June in Yaoundé, Cameroon. 

“I wish to thank the Annual General Meeting for passing the resolution to admit FSA as the 47th shareholder.  I also wish to thank the management and staff of Shelter-Afrique for achieving the objectives set by the Board of Directors. Let me thank FSA for identifying a common vision and sharing our zeal to develop Africa and especially to provide financial services to propel African economies,” said Dr. Mainda. 

“We are pleased to welcome the African Solidarity Fund into the Shelter-Afrique family. This is a remarkable step that gives us assurance and great comfort that our vision of providing decent and affordable homes to all Africans is a vision that is not only shared by others, but is worthy and necessary,” said Mr Andrew Chimphondah, Chief Executive Officer of Shelter-Afrique Group.

“The pan-African vocation, vision and mission of the African Solidarity Fund are similar to those of Shelter Afrique and we are pleased to now be part of the Shelter Afrique family. The intervention techniques of the two institutions are complementary and we look forward to working together to contribute to the availability of decent housing to all Africans by facilitating geographical and financialaccessibility,”said ASF Director General, Mr. Ahmadou Abdoulaye Diallo.

Share categories

Shelter-Afrique’s share capital is held by two groups of Shareholders composed of 44 African countries including Algeria, Benin, Botswana, Burkina Faso, Cameroon, Cape Verde, Central African Republic, Chad, Congo, Côte d’Ivoire, Democratic Republic of Congo, Djibouti, Gabon, Gambia, Ghana, Guinea Conakry, Guinea Bissau, Côte d’Ivoire, Kenya, Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritius, Mauritania, Morocco, Namibia, Niger, Nigeria, Rwanda, Sao Tome and Principe, Senegal, Seychelles, etc. Principe, Senegal, Seychelles, Sierra Leone, Somalia, Swaziland, Tanzania, Togo, Tunisia, Uganda, Zambia and Zimbabwe in “Class A”; and the African Development Bank (AfDB) and the African Reinsurance Corporation (Africa-Re) in “Class B”.

The African Solidarity Fund now joins the African Development Bank and the African Reinsurance Corporation in the category of “Class B” shareholders.

“Our goal is to bring on board the remaining 10 African countries that are not yet members of this major pan-African development finance institution, focusing immediately on South Sudan, Egypt, South Africa and Ethiopia. We are also working to bring more African institutions and companies into the ‘B’ category and to broaden our shareholding to include additional non-African investors in the ‘C’ category, which we have already created,” concluded Chimphondah.

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.

Nairobi: June 10, 2021: Shelter Afrique Board has approved a line of credit worth US$9 million in housing loan to Lagos-based Wema Bank Plc.

The 7-year facility due for repayment in 2027 will be used for onward lending to developers and home buyers who wish to purchase single units on an owner-occupier basis and Employee Assisted Mortgage Scheme. Also, the loan will create mortgages for the purchase of affordable housing within the range of 16 million Naira (US$40,000) and 32 million Naira (US$80,000), home completion, home improvement, or home extension.

Shelter Afrique Group Managing Director and CEO Andrew Chimphondah said sealing the deal was a positive step in addressing the housing shortage in Nigeria.

“Nigeria is facing an estimated housing shortfall of over 20 million units and Shelter Afrique works closely with the relevant authorities to help address this shortage through government and private sector initiatives. The extension of the US$9 million loan to Wema Bank reaffirms our commitment to the provision of affordable housing solutions to the citizens of Nigeria,” Mr. Chimphondah said.

Wema Bank Plc Chief Executive Officer Ademola Adebise said the line of credit goes further to cement the long partnership between the two institutions.

“Wema Bank has enjoyed a great working relationship with Shelter Afrique since 2014 when the Bank signed the first line of credit worth US$10m. We are pleased to partner with Shelter Afrique again and we look forward to a longer-term relationship,” Mr. Adebise added.

Key partner

Nigeria remains one of the key partners and markets for Shelter Afrique. In 2020, the Company received $9.4 million from the Federal Republic of Nigeria, being the first tranche of the US$29.3 million the country had committed in an additional capital subscription.

Conversely, the Company is currently considering a $3 million equity participation in the newly created Nigeria Mortgage Guarantee Company (NMGC) having already helped to create the Nigeria Mortgage Refinance Company (NMRC).

Other housing projects the Company is considering are a 60,000 homes Public-Private-Partnership with the Kaduna State government. The project is expected to create 300,000 jobs.

The Company is also planning to issue Local Currency Bonds amounting to 200 billion Naira (US$ 500M) to finance its robust pipeline in the country.