Pan-African housing development financier, Shelter Afrique has been elevated into a development bank in a historic move that promises to reshape the landscape of African housing and urban development. This follows the approval by its shareholders during the Extraordinary General Meeting (EGM) in Algiers, Algeria between 4th -5th of October. The renaming of Shelter Afrique, according to a statement, “solidifies its status as a transformative and sustainable development bank” that is completely committed to developing urban housing and related infrastructure development throughout Africa.
The transition will be visible, according to managing director Thierno-Habib Hann, through greater housing unit finance and construction as well as better access to decent, sustainable, and affordable housing. The bank said that the change will also bring it into compliance with international norms and put it in the forefront of financiers for the housing sector. “This will also place us at par with peer Development Finance institutions (DFIs),” the company stated. Some of the key highlights of the financier’s transformation are as follows; International Alignment The new Agreement aligns the Bank to international standards granting the institution a leading position among housing sector financiers and placing it at par with peer Development Finance institutions (DFIs).
The diversification of the shareholding and Board composition into Class A (African States), Class B (African Institutions) and Class C (International and Private sector) will ensure financial sustainability and best-in-class Corporate Governance. Enhance Housing Development Impact and Shareholder Value The Bank will generate and maintain robust positive financial returns by posting and monitoring key performance indicators on liquidity, profitability, asset quality, efficiency, and productivity. ShafDB’s strategic vision is also to expand its portfolio offering to include thematic areas across the housing value-chain, such as Green/Climate/Resilience, Gender, Jobs (SMEs/Trade), Trunk Infrastructure, Islamic finance, IDPs (Migrants/Refugees), and Diaspora.
This will be achieved via specialized funds in the Asset Management business. Improve Organizational Sustainability The repositioning of ShafDB through the revision of its Statutes will further strengthen its adherence to the highest standards of Corporate Governance and align the Bank’s structures to international frameworks and best practices. The inclusion of an Advisory Board composed of representatives of the Ministry of Finance and international experts will strengthen the strategic and financial management capabilities of the Bank. Generally, the core mandates include delivery of financial solutions and associated services that support both the supply and demand aspects of the affordable housing value chain focusing on addressing Africa’s housing crisis through financial institutions, project finance and public-private partnerships. Shelter-Afrique Development Bank (ShafDB) is a Pan-African institution solely dedicated to financing and promoting housing, urban & related infrastructure development across the African continent.
ShafDB operates through a partnership involving 44 African Governments, as well as the African Development Bank (AfDB) and the Africa Reinsurance Corporation (Africa-Re). It delivers financial solutions and associated services that support both the supply and demand aspects of the affordable housing value chain. As a premier provider of financial, advisory, and research solutions, ShafDB focuses on addressing Africa’s housing crisis through financial institutions, project finance and public-private partnerships, striving to achieve sustainable developmental impact.
