AFDB injects $28.2m into Shelter Afrique
The Pan-African housing institution – Shelter Afrique has received approval for a $28.2 million injection from the African Development Bank.
This capital injection follows from the $8.2 million equity investment by AfDB and the commitment made by the bank at the recently concluded extraordinary general meeting held in Nairobi last month.
The Acting Managing Director, Shelter Afrique, Femi Adewole who confirmed the development noted, “We made a very firm commitment to our shareholders and investors to improve our internal processes at the EGM, and they in turn made an equally firm commitment to support us in our mission of delivering affordable housing.
“The additional financing from the AfDB shows the confidence investors and shareholders have in that mission and our efforts to improve our processes, we have also received letters of intent from some of our major shareholders like Nigeria and Kenya and I believe very soon, you will be hearing of more of these kind of developments.”
Speaking on the recent negative downgrade of Shelter Afrique’s rating by GCR, Adewole said: “It is certainly not an ideal situation and one that we are working assiduously to reverse so we can restore market confidence, but we also see it as a turning point, a call to action if you will, and we have no doubt that in the short-medium term we would have addressed all the concerns raised and we are confident that the next outlook will be positive.”
Speaking on the development, Director General at AfDB’s East Africa Regional Office, Gabriel Negatu noted that “These new resources show that the African Development Bank is fully committed to the growth and development of Shelter Afrique, which plays a vital and unique role in the development of affordable housing across Africa.
With the strong measures taken by Shelter Afrique to improve its governance and the support of its shareholders, the company can move to the next stage of its development.”