Browsing: Shelter Afrique

• South African rating agency GCR has upgraded Shelter Afrique Development Bank’s global scale long issuer rating to B from B- and affirmed a stable outlook.
• Additionally, GCR has upgraded the national scale issuer ratings for Kenya, Nigeria, and Mauritius, all with stable outlooks, while recognizing Shelter Afrique’s transition to a treaty-based entity and strategic efforts to address capital arrears.
• This transformation has improved the bank’s operational and financial performance, enhanced governance, and solidified its legitimacy and confidence among members.

South African rating agency GCR, has upgraded Shelter Afrique Development Bank’s (ShafDB) international scale long issuer rating to B from B- and affirmed the short-term national scale issuer rating of B, with the outlook accorded as Stable.

At the same time, GCR has also upgraded the long and short-term national scale issuer ratings for Kenya to AA-(KE)/A1+(KE) from A+(KE)/ A1(KE); Nigerian to AA+(NG)/A1+(NG) from AA(NG) / A1+(NG); and Mauritian to BB+(MU)/B(MU) …

• The outlook is based on GCR’s expectations of Shelter Afrique’s stability in governance structures and operational frameworks.
• GCR said the ratings could improve with significant enhancements in Shelter Afrique’s asset quality.
• The institution underwent re-alignment and introduced a new organizational structure and operating model to support innovation.

South African rating agency GCR has assigned Shelter Afrique a positive outlook, anticipating a return to profitability within the next two years. GCR gave the pan-African housing development financier long and short-term issuer ratings of B- and B respectively.

The shift to a positive outlook reflects significant improvements in fundamentals and ongoing governance reforms within the organization. Shelter Afrique cut its non-performing loan ratio to 51 per cent by December 2022 from 67 per cent in 2021 .

GCR stated, “The outlook is positive based on our expectations of stability in governance structures and operational frameworks. We also factor in improvements in risk …

• The World Bank data shows remittances by Africans in the diaspora hit over $95.6 billion in 2021 with Nigeria, Ghana, and Kenya among the highest recipients of the inflows.
• Africa has a housing deficit of about 56 million units driven largely by urbanization and population growth, which has left governments struggling to meet the demand for affordable units.
• Many of the 40,000 people moving to African cities every day cannot afford basic formal housing or access loans to acquire homes.

Pan African housing development financier, Shelter Afrique, is targeting Africans living and working abroad to enhance the delivery of affordable housing agenda across the continent.

Shelter Afrique managing director Thierno-Habib Hann said over 170 million people of African descent that live and work in various countries across the world present a formidable resource pool for the continent’s infrastructure development, including housing.

“African diaspora populations are growing, as are their savings …

Shelter Afrique recently finished its first bond issuance in Nigeria’s capital market, which was a 46 billion nairas ($110.7 million) Series 1 Fixed Rate Senior Unsecured Bond Issuance. This was done as part of Shelter Afrique’s 200 billion nairas ($481.3 million) bond issuance programme, which will be used for the development of housing and urban areas in Nigeria.

Shelter Afrique was able to exercise the ‘green shoe’ option and raise an additional 6 billion (US $14.4 million) more than the original 40 billion plan (US $96.3 million) because the dual-tranche bond issuance was oversubscribed by 60.7%, with the order book peaking at 64.3 billion (US $154.6 million). This allowed Shelter Afrique to raise an additional 40 billion (US $96.3 million).

The high rate of oversubscription is evidence that investors have faith in Shelter Afrique’s mission to facilitate the construction of housing in Africa, as well as the institution’s excellent management …

According to the report, Africa’s urbanization rate will continue to grow among the fastest of the world regions in the coming years as its population grows, which is expected to double by the year 2050.

“We urge policymakers across the continent to enact policies that will encourage urban growth modelled around economic development and poverty eradication,” Dr. Gambo said.

Dr. Gambo, however, noted that funding urban growth still remains a formidable challenge for many countries, but believes it’s achievable.…

The government’s plan, under what was dubbed the Big 4 Agenda was to see low-cost housing provided for those earning between KSh15,000 (US$150) to KSh49,000 (US$50). There was also a plan to cover those with little or no income at all. 

But questions on how the houses would be allocated threw cold water on the project which sounded like a scam every time government officials tried to explain the proposal and how it would work.…

African Ministers and Heads of Delegation of Ministries in charge of Housing and Urban Development, African Finance Ministers, the Directors and Management of Shelter Afrique, and representatives of international, regional and national institutions, the private sector and civil society, have agreed to enhance mechanisms for the mass production of decent and affordable housing in the continent to achieve social and economic development.

During a three-day summit at the 40^th Annual General Assembly of shelter-Afrique that was held in Yaunde Cameroon, the participants resolved to address the challenges that have hindered the efforts to provide decent and affordable housing in Africa.

In a research concluded by the Shelter-Afrique, a pan African housing finance and development institution, shows that the overall shortage of housing in Africa is estimated at 56 million housing units with out of this, more than 90 per cent are in affordable housing bracket.

The Managing Director …

Shelter Afrique has signed an US$11 million housing deal with Harare-based African Banking Corporation (BancABC).

The Pan-African housing development financier which was established by African governments to address the need for sustainable housing delivery system and related infrastructure projects in Africa announced on Tuesday, June 8, 2021, that the facility will be used for the construction of 2,500 residential housing units.

Through a press statement sent to newsrooms, the institution said the deal will also facilitate mortgage origination, home extension & improvement; onward lending to affordable housing projects; and financing small-scale commercial projects such as small shopping malls.

African Banking Corporation of Zimbabwe Limited (“BancABC”) is part of ABC Holdings Limited (ABCH), a Botswana-incorporated company. ABCH was created by the amalgamation of regional and international businesses that had been active in the sub-Sahara financial markets for 50 years.

Housing backlog in Zimbabwe

According to shelter Afrique Group Managing Director and …

NCBA Bank has signed up a partnership with Shelter Afrique to provide mortgage finance to buyers in five counties.

Under the agreement, NCBA will offer mortgage finance to over 200 housing units developed by Shelter Afrique and spread across Nairobi, Mombasa, Kisumu, Kiambu and Machakos counties.

The developments include maisonettes and apartments ranging from Ksh5.5 million ($49,931) to Ksh 20.25 million ($183,840).

Commenting on the agreement, NCBA’s Head of Property Finance Stella Mutai said the bank will continue to seek partnerships in order to improve access to housing within the country and the region.

“This is an exciting partnership with Shelter Afrique as we work together to bridge the housing gap across the country and the region,” said Stella.

Stella added: “The huge volume of houses that our country needs will require closer partnerships to help meet the growing housing needs in our major …

Shelter Afrique, Pan-African housing development financier signed a Memorandum of Understanding (MOU) with two Chinese construction firms to scale up the development of large-scale affordable housing projects in Kenya and its member States.

The two Chinese construction firms are Amberton International Holdings and Sichuan Huashi Enterprise Corporations E.A. LTD, with the MoU expected to boost Shelter Afrique’s mandate of providing decent and affordable housing in Africa.

The MoU was signed by Andrew Chimphondah, Shelter Afrique Chief Executive Officer, Nancy Yu, Amberton International Holdings Director and Sichuan Huashi Enterprise Corporations E.A. LTD Managing Director Cao Zheng.

“As a company, our overriding strategy is the provision of affordable housing across our member States through public-private partnerships.  This strategic partnership with Amberton and Huashi will be key in expanding our projects across the continent as we draw from the experiences of the two companies. Shelter Afrique will work closely with Amberton International Holdings …