AfDB Commits USD 30 million to Shelter Afrique to Improve Housing in Africa
Nairobi, Kenya – 31 July 2009- The African Development Bank (AfDB) has committed more than USD 38 million to Shelter Afrique in support of sustainable housing solutions in Africa. AfDB and Shelter Afrique signed a package of three financial agreements in Nairobi on 31 July 2009. Mrs. Domina Buzingo, Resident Representative of AfDB in Kenya, who signed on behalf of AfDB, indicated that the Bank “believes, it is through such collaboration that we can reach our development goals.”
The financial package consists of a USD 30 million line of credit, USD 7.5 million equity investment, and USD 0.95 million technical assistance from the Fund for African Private Sector Assistance (FAPA). This line of credit will provide long-term funds for on-lending to private real estate developers and housing finance institutions in Shelter Afrique member countries. The equity investment entails subscription to shares and support to Shelter Afrique in reaching its target of share capital, thereby triggering a general capital increase.
The assistance granted by The Fund for African Private Sector Assistance (FAPA) will be used to enhance the capacity of Shelter Afrique in addressing the need for and promoting sustainable housing delivery mechanism on the African continent.
The Ambassador of Japan, H.E Mr. Iwatani, expressed the keen interest of his country to continue strengthening cooperation between Japan and Africa, through such initiatives as FAPA. FAPA is a Trust Fund for private sector development created under the Enhanced Private Sector Assistance Initiative (EPSA for Africa) launched in 2005 by the AfDB and Japan. FAPA provides grants for technical assistance and capacity building to complement the Bank's private sector operations. The grant for Shelter Afrique brings the total of FAPA commitments to 22 projects with a total value of over USD 18 million.
“Now the focus will be on implementation by speeding up all processes for quick disbursements to projects and shifting our performance indicators from disbursements to number of houses, apartments and other housing for African populations” said Alassane BÂ, Managing Director of Shelter Afrique.
The Company for Habitat and Housing in Africa (Shelter Afrique or SHAF) is a pan-African housing finance and development institution established in 1982 by African governments, the African Development Bank (ADB), Africa-Reinsurance Co. and Commonwealth Development Corporation Group (CDC) to mobilize funds and support provision of sustainable housing in Africa.