The Federal Republic of Nigeria commits $29.3 million in additional capital to Shelter Afrique making it the second-largest shareholder after Kenya.
Nigeria takes the second largest shareholding after Kenya with each acquiring 14.77 per cent and 14.87 per cent respectively with the African Development Bank acquiring 14.28 per cent of the shareholding.
In additional capital contribution, the Shelter Afrique also confirmed additional funds of $6.6 from Rwanda, Uganda, Lesotho, Mali, Namibia, Togo, Zimbabwe, and Swaziland.
The Shelter Afrique’s Group Managing Director, Mr. Andrew Chimphondah praised Nigeria’s government for showing confidence in the institution and giving a stamp of approval for the organization’s financial turnaround.
“We are grateful to the Nigerian government for their continued support and the importance they have placed on affordable housing. We are especially grateful to the Honourable Minister for Works and Housing, Babatunde Fashola for demonstrating this support through honoring this significant payment. We also recognize the role played by the Honourable Minister for State, Engineer Abubakar Aliyu. Additionally, we also appreciate Nigeria’s active shareholder and board participation,” said Mr. Chimphondah.
The Group Managing Director also added that it is encouraging to see in this age of nationalism that African countries embrace multilateralism and Pan-Africanism as they collectively seek to address African challenges. Noting that countries like Nigeria, historically, have always been at the forefront of such activities.
“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 recapitalization of the institution as demonstrated by Nigeria’s significant capital injection and contributions from Lesotho, Mali, Namibia, Nigeria, Rwanda Uganda, Togo, Zimbabwe, and Swaziland,” Mr. Chimphondah said.
In the newly created Nigeria Mortgage Guarantee Company (NMGC), the Shelter Afrique is currently considering equity participation of $3 million. The organization is also in the last stages of providing lines of credits worth $16 million to two banks in Nigerian to create mortgages that will directly impact 4,700 people in Nigeria.
Mr. Chimphondah also added that Shelter Afrique has been in the front line advocating for housing and infrastructure spending as an instrument for post-COVID economic recovery.