Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
courtesy

Kenya

Shelter Afrique gets Sh1.01bn from Nigerian Govt as Additional Capital

NAIROBI, Kenya, Sept 4 – Shelter Afrique has received USD$9.4 million, equivalent to Sh1.01 billion, from the Federal Republic of Nigeria, being the first tranche of the US$ US$29.3 million (Sh3.12 billion) the country has committed in the additional capital subscription.

The contribution moves Nigeria to the second largest shareholding in the organisation with 14.77 percent of the shareholding, behind Kenya with 14.87 percent and ahead of the AfDB at 14.28 percent.

The Housing financier confirmed that it had also received further US$6.6 in additional capital contributions from Rwanda, Uganda, Lesotho, Mali, Namibia, Togo, Zimbabwe and Swaziland.  

Speaking in Nairobi, Shelter Afrique’s Group Managing Director, Andrew Chimphondah lauded the government of Nigeria for its show of confidence in the institution and a stamp of approval for the organisation’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 honouring this significant payment. We also recognise the role played by the Honourable Minister for State, Engineer Abubakar Aliyu. Additionally, we also appreciate Nigeria’s active shareholder and board participation,” Chimphondah said.  

The Group Managing Director continued, “it is especially heartening to see in this age of nationalism that our African countries embrace multilateralism and Pan-Africanism as we collectively seek to address African challenges. 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 recapitalisation of the institution as demonstrated by Nigeria’s significant capital injection and contributions from Lesotho, Mali, Namibia, Nigeria, Rwanda Uganda, Togo, Zimbabwe and Swaziland,” Chimphondah said.

Housing Projects in Nigeria

The organisation is currently considering a USD$3 million equity participation in the newly created Nigeria Mortgage Guarantee Company (NMGC) having already been instrumental in the creation of the Nigeria Mortgage Refinance Company (NMRC). Other housing projects being considered are a Public-Private-Partnership with the Kaduna State 60,000 homes; this project is anticipated to create 300,000 jobs. The organisation is also in the final stages of providing lines of credits totalling USD$16 million to two Nigerian banks to create mortgages that will directly impact 4700 Nigerians.

Advertisement. Scroll to continue reading.

Housing key for Economic Recovery from pandemic

Speaking on the current pandemic, Chimphondah noted that Shelter Afrique has been leading the advocacy for housing and infrastructure spending as a tool for post-COVID economic recovery.

“We believe that every crisis offers opportunities; we believe the construction of housing is a critical path to recovery after Covid-19. Traditionally, governments have invested in large infrastructure and construction projects. We believe that capital projects are an essential panacea to stimulating African economies. We already see this practice adopted in Nigeria”.

Shelter Afrique is set to explore how construction and infrastructure development can boost the economy during its first-ever virtual Annual Symposium and AGM, which are scheduled to be held on the 15th and 17Th of September 2020 respectively. 

2 Comments
Advertisement

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...

Headlines

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

Kenya

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

Coronavirus

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

Coronavirus

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