NAIROBI,
Kenya– 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.
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.
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