Category: news-room-2022

Nairobi: March 22, 2022 – Pan- African housing development financier Shelter Afrique, through its research and policy formulation arm, Centre of Excellence (CoE), has launched a ‘Housing Affordability Calculator’ which will help the Company better address issues of housing affordability in order to improve viability of affordable housing projects in Africa.

The housing affordability calculator, which was developed in partnership with the Center for Affordable Housing Finance in Africa (CAHF), also seeks to enhance understanding of housing affordability as it pertains to the demand and supply sides in the context of African countries.

“The question of what is affordable is pervasive, but the answer still eludes us. Basically, housing affordability is a function of the purchase price, finance and the cost of living. However, if household affordability is not accurately gauged by public or private sector developers, then there is a serious risk that there will be insufficient effective demand by households to purchase or rent the houses produced. Thus, the housing affordability calculator is vital for Shelter Afrique in evaluating housing project proposals submitted, with respect to whether the units proposed are likely to be affordable to a low income target market in that location,” said Dr. Muhammad Gambo, Head of Policy, Research and Partnerships at Shelter Afrique.

He noted that the viability of affordable housing projects depends upon accurate methods for gauging household (or buyer) affordability and achieving unit costs that meet those affordability constraints.

“This affordability calculator will also assist other stakeholders in the built environment industry to better address issues of housing affordability and to improve the targeting and viability of their affordable housing projects,” Dr. Gambo said.

The calculator requires the user to input four data points: household’s monthly income; distance from the city centre; country of residence; and the local currency or US Dollar.

The calculator then applies background data and assumptions based on the prevailing mortgage terms in individual country, percentage of monthly household income spent on transport based on distance of house from city centre, and percentage of monthly household income spent on transport and housing for each income band.

Empty apartments amid housing shortage

The push for housing development across Africa has led to a boom in new homes, but high construction costs, infrastructure, land and compliance costs mean the majority of such houses are too expensive for those who need them most.

“In most countries in Africa, even the cheapest newly-built house is still not affordable to the majority of the urban population leading to high vacancy rates as we’ve seen in some countries such as Nigeria and Kenya. Developer-built housing typically targets the higher end, and is rarely delivered at scale. But even a USD20 000 house is unaffordable for the majority – and these are only available in limited projects,” Dr. Gambo said.

Dr Gambo noted that poor affordability targeting could put pressure on governments to provide further subsidy as in the case of Vision City in Kigali, Rwanda, or in the Kilamba development in Angola” and at the same time impose target price that cannot be feasibly delivered by a developer.

“Our aim is to improve the provision of affordable houses across Africa and we hope that affordability calculator will help us achieve this goal by making such project feasible and viable on both the demand and supply sides,” Dr. Gambo concluded.

 

Nairobi, 18th February 2022

Shelter Afrique the Pan-African Housing Financier dealing exclusively with the promotion of affordable housing has announced the departure of Managing Director Andrew Chimphondah.

The announcement follows a recently held Board Meeting where a decision for separation was made.

Mr. Andrew Chimphondah, a Zimbabwean national was appointed as the Managing Director in September 2018. Chimphondah, who is a Chartered Accountant oversaw the turnaround strategy of the housing financier approved by its General Assembly in 2017. Chimphondah also presided over a return to profit and was instrumental in raising substantial capital subscriptions from member countries.

The organisation, however, is in the middle of a reorganisation and restructuring to optimise service delivery and during this transition, it will be stewarded by Mr. Kingsley Muwowo, the Chief Finance Officer as Acting Managing Director pending the recruitment, on a competitive basis, of a substantive Managing Director.

The Board extends to Mr Chimphondah its gratitude for his years of service and wish him well in all future endeavours.

In 2021, the financier announced plans for a $500m Naira Bond and is in advance stages of completing the process of floating the Bond on the Nigerian Stock Exchange. The Board and Management are dedicated to making the capital raise a success as a demonstration of how effective capital markets can be to spur development in Africa.

Zimbabwe, Harare 15 February 2022

The Government of Zimbabwe represented by the Minister of National Housing and Social Amenities, Honourable Daniel Garwe and Shelter Afrique represented by Managing Director Andrew Chimphondah, signed a Hosting Agreement for the Shelter Afrique 41st Annual General Meeting (AGM) on Friday 11 February 2022. The AGM will be held under the theme: Climate Change and the Built Environment.”

The signing of the Host Agreement signals the commitment by the Government of Zimbabwe to host the Shelter Afrique 41st Annual General Assembly earmarked for 25 to 30 July 2022 in Victoria Falls. The agreement spells out the Annual General Meeting, a ministerial roundtable and interlinked business activities as some of the events which will constitute part of the proceedings.

The Government of Zimbabwe is expected to ensure effective organisation and success of the meetings, by undertaking to contribute to the physical arrangements which include country entry requirements, provision of hosting premises, transport for designated officials, equipment required during conferencing, meeting COVID 19 related protocols for delegates and customs related formalities.

Speaking prior to the signing ceremony, Honourable Daniel Garwe who is also the first Vice Chairperson of the Shelter Afrique Bureau of the General Assembly, commended the Managing Director Andrew Chimphondah for leading a delegation to Zimbabwe and noted that the move demonstrated his conviction in the country as an ideal destination for foreign direct investment.
He explained that Zimbabwe joined Shelter-Afrique in November 1993 and since then, the organisation has invested $58.2 million in Zimbabwe through nine separate facilities.

The Minister also pointed out that Shelter Afrique held its 36th AGM in Victoria Falls and their return after 5 years for the 41st AGM demonstrates the renewed interest in Zimbabwe, providing a window of opportunity for the Government to leverage on in shaping the narrative towards robust human settlement delivery strategies.

He pointed out the gains to be accrued by Zimbabwe through hosting the AGM which include regional integration, tourism and business linkages and thanked Shelter Afrique for bestowing trust upon Zimbabwe as a Nation by selecting it as a venue of choice.

Speaking on the same occasion, Permanent Secretary in the Ministry of National Housing and Social Amenities Engineer Joy Makumbe emphasised that the signing ceremony was significant to the Ministry as it signalled the establishment of a relationship with anticipated great returns towards housing delivery in Zimbabwe.

On his part, Mr Chimphondah said the signing of the Host Agreement was significant in highlighting Shelter Afrique’s role as a catalyst in the industry and its ability to leverage partnerships.

He explained that this was envisioned to be delivered through Private-Public-Partnerships (PPPs) with the Urban Development Corporation (UDCORP).
“We have found success with this in our member countries and believe Zimbabwe is the ideal location for this,” he said.

Chimphondah thanked the Government of Zimbabwe for committing to hosting the 41st AGM, which will be the second time in 5 years.

He stressed that this would be an opportunity for the government to shape and lead the conversation on affordable housing in the region. In reference to the AGM theme, he referred to the Glasgow Conference of Parties (COP26) held last year as impetus to the need for a built environment which relates to climate change. He emphasised that housing played an important role in that regard and Africa had a role to play, which is why the proposed theme for the 41st AGM is Climate Change and the Built Environment.

Chimphondah acknowledged the unique location for the AGM. “I believe that it will be a unique AGM if for no other reason, there are very few places in the world that have the majesty of Victoria Falls,” he said.

The signing ceremony was witnessed by Cabinet Ministers, senior government officials, representatives from the financial service sector and organisations within the housing delivery spectrum.

Hon. Daniel Garwe assumed the 1st Vice Chairpersonship of the Shelter Afrique Bureau in 2021 and will succeed Cameroon as Chairman during the 41st Annual General Meeting.

More than 200 guests drawn from the 44 member countries are expected to attend the AGM as well as other interlinked activities. An international exhibition is also envisaged to attract several exhibitors from across the world.