Connect with us

Hi, what are you looking for?



Shelter Afrique eyes green bond to fund affordable housing projects

We will engage with some of our partners to access this funding for affordable housing in Africa in the coming year – Chimphondah said/COURTESY

NAIROBI, Kenya, Nov 26 – Pan African housing development financier Shelter Afrique is betting big on green financing to fund its affordable housing projects across Africa.

 “Green financing offers cheaper options to fund projects whose bottom line directly impact the environment, like the construction, and as such we are making a strategic decision to add it to our funding mix,” Shelter Afrique Chief Executive Officer Andrew Chimphondah said.

 “We will engage with some of our partners to access this funding for affordable housing in Africa in the coming year,” the Chief Executive added.  

According to the climate bond initiative, green bonds issuance is expected to reach US$250 billion in 2019, up from US$170.9 billion raised in 2018.

In Africa, South Africa issued its first municipal green bond in 2014 worth R1.5bn (US$101.3 million) and the second green bond in 2017 worth R1bn (US$67.5 million)  in 2017.  Nigeria made a debut in the green bond market in 2017 issuing N10.69 billion (US$30 million), as Egypt plans a debut in 2020.

Kenya’s first green bond issued by Nairobi-based property developer Acorn Holdings for the construction of environmentally friendly student this year raised Sh4.3 billion shillings (US$41.45 million). Egypt is expected to mark a debut in the green bond market in 2020.

“There is a market for green financing in Kenya, South Africa, and Nigeria since these countries have well established capital markets. For instance, Kenya capital market has the capacity to support green bond not just for Kenya but also for the east Africa region. However, most capital markets across Africa need to be strengthened,” Chimphondah said.

In a 2018 report, “Climate Investment Opportunities in Cities”, International Finance Corporation (IFC) estimates a cumulative climate investment opportunity of US$29.4 trillion across six key sectors in emerging market cities through 2030.

The largest share of the opportunity is in green buildings (US$24.7 trillion), covering new constructions and retrofits, as cities race to accommodate their growing populations. Other key sectors identified for urban climate-smart investment include electric vehicles (US$1.6 trillion), public transport infrastructure (US$1 trillion), climate-smart water (US$1 trillion), renewable energy ($0.8 trillion), and municipal solid waste management (US$0.2 trillion).

The IFC report also indicates that more than half of the world’s population lives in urban areas, a number that is expected to reach 70 percent by 2050.

Advertisement. Scroll to continue reading.

“Our research from Shelter Afrique Centre of Excellence (CoE) indicates that Africa is urbanizing at a very fast rate thus exacerbating the continent’s housing crisis. Our research also indicates that the continent requires more than US$ 1.4 trillion in funding to be able to effectively address this growing housing crisis and innovative funding options like green bonds comes in handy,” Chimphondah said. 

Click to comment

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...


NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...


NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...


NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...


NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...