Family Homes Funds, Shelter Afrique seal deal to improve housing
As the nation’s housing crisis continues to worry about the authorities, Nigeria’s largest Social Housing Fund – Family Homes Funds (FHF) has signed a Memorandum of Understanding (MoU) with pan-African housing finance institution, Shelter Afrique towards building more affordable homes in the country.
FHF is a social housing initiative promoted by the Federal Government of Nigeria as part of its Social Intervention Programme with initial shareholding by the Federal Ministry of Finance and the Nigeria Sovereign Investment Authority, focused on affordable homes for Nigerians on low-income.
Over the next four years, the company aims to invest up to N1.3trn (US$3bn) in the development of 500,000 homes for people on low-income. In the process, the Company also aims to create up to 1,500,000 jobs and enable homeownership through its creative products.
While Kenyan-based Shelter Afrique is a partnership of 44 African governments, the African Development Bank (AfDB) and the Africa Reinsurance Company that provides funding solutions for new affordable housing projects.
The agreement signed in Abuja by the Managing Director/Chief Executive Officer of Family Homes Funds, Mr. Femi Adewole, and Shelter Afrique’s Chief Executive Officer, Mr. Andrew Chimphondah provides a well-suited partnership, which will increase the number of affordable housing projects in Nigeria.
Adewole, who was the immediate past Managing Director of Shelter Afrique said: “This is a small but momentous occasion as Shelter Afrique has been a housing financing organisation for more than 35 years with significant experience across very many countries; on the other hand, Family Homes Funds is barely a couple of years old.
“This partnership and relationship birthed out of this MOU provide the beginning of what I hope and expect-and we will work assiduously for it to be- a very successful relationship, ensuring that we create homes for Nigerians who need it most.”
Chimpondah, who thanked the board and management of Family Homes Funds, emphasized the strategy of the continental organization in delivering affordable housing and identified Nigeria as its biggest market.
He cited a 22-million deficit out of the total 56-million housing deficit in Africa and Nigeria’s shareholding in Shelter Afrique. “We are very grateful to get into a partnership with Family Homes Funds and we are delighted to sign the MOU. One of the things we realised when we re-strategized over the last few years is that beyond financing affordable housing, one of our strengths was leveraging our partnerships and networks.
“So, we are very happy to be signing the agreement, not only because it fits seamlessly with our strategic direction, but because Nigeria is a key market and Family Homes Funds have a better understanding of the local market and we are looking forward to getting into a long-term partnership.
“The idea is to co-fund specific deals, share market knowledge and operate in line with best practices. In the end, our core vision is to develop decent and affordable homes for all Nigerians and if we work together to solve the affordability challenge on the demand and supply side, we will be able to achieve a lot,” he said.
The signing of the MOU is a first in what will be a weekly series of meetings held by a committee with members from both organisations. The meetings are expected to result in specific co-funded affordable housing projects, which have been identified as low hanging fruits-projects that are affordable and below N9million per home. Both firms have committed to co-finance at least one project before the end of 2019.
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