ShafPress

• 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.