By Yinka Kolawole
Shelter Afrique has received $8.2 million injection of equity from the African Development Bank (AfDB). Shelter Afrique is a pan-African finance institution which exclusively supports the development of housing and real estate sector in the continent.
In a statement, AfDB said the injection is meant to strengthen its balance sheet and help achieve its objective of providing quality affordable housing in Africa. It further highlighted the confidence the bank has in the future of the continent and the implications for housing development in the continent.
“Africa’s economic landscape remains positive with promising scope for growth; Gross Domestic Product remains robust supported by multiple factors. The continent’s growing population, a growing middle class and the fastest urbanisation rate in the world are some of the factors driving increased demand for affordable houses and housing finance,” AfDB noted.
Managing Director of Shelter Afrique, Mr. James Mugerwa, noted that the equity increase is a reflection of the confidence reposed by AfDB in his firm.
“The African Development Bank has sent strong signals about the seriousness of housing on the continent, and by extension, the seriousness of what we do here at Shelter Afrique. It is a welcome development but we see it as engaging as well. This equity increase means the AfDB wants to see more, they want to see impact and scale and that is what we will be aiming for this year; impact,” he said.
AfDB stated that the investment is well aligned to its ten year strategy for the period 2013-2022, as well as one of the bank’s high strategic priorities of “improving the lives of people in Africa”.
With the increase in equity, AfDB – a Class B shareholder – has become the largest shareholder in the organisation, making the housing financier an unofficial subsidiary of the bank.
Shelter Afrique is owned by 44 African Sovereign shareholders categorized as Class A shareholders. The Class B shareholders are the African Development Bank and the Africa RE organisation.