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Shelter Afrique, a pan-African housing development financier, has received an additional capital subscription of $7.15 million from the Nigerian government.

Nigeria’s shareholding now stands at 15.8 percent, one percentage point below top shareholder Kenya, which holds 16.85 percent.

The African Development Bank (AfDB), which has dropped from 12.71 percent to 12.16 percent, Mali, which has dropped from 5.54 percent to 5.3 percent, and Ghana, which has dropped from 5.28 percent to 5.05 percent, are the other top three shareholders of Shelter Afrique whose shareholdings have changed.

Shelter Afrique Ag. Managing Director & Chief Finance Officer Kingsley Muwowo praised Nigeria’s government for its faith in the institution, saying the decision puts Nigeria in an excellent position to become the largest shareholder in Shelter-Afrique once the country reaches its capital pledge.

“We are grateful to the government of Nigeria 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, Honorable Minister for State, Engineer Abubakar Aliyu, and Honorable Minister for Finance Dr. Zainab Shamsuna Ahmed, for their long-term support and for honoring this significant payment. Additionally, we appreciate Nigeria’s active shareholder and board participation, “Mr. Muwowo said.  

The relationship between Nigeria and Shelter Afrique has been growing in recent years. In September 2020, the institution received US$9.4 million in additional capital subscriptions from Nigeria.

Fund-raising efforts

Other countries that have so far ramped up the capital subscription in the Pan-African housing development financier in 2022 are Swaziland and Burkina Faso which paid USD317,854.54 and USD34,610.00 respectively, for additional stakes.

“So far, we have received $7,504,295.45 in additional capital from member states within the last six months of 2022.  “We are grateful to our shareholders for this much-needed capital injection, which will go a long way in strengthening the capital structure of the company to support the ongoing fund-raising efforts to raise additional debt capital required to support the project pipeline, which now stands at the US $1 billion across 44 member countries,” Mr. Muwowo said. 

Shelter Afrique recently completed a debut ₦46 billion (US$110.7 million) Series 1 Fixed Rate Senior Unsecured Bond Issuance in Nigeria’s capital market under its ₦200 billion (US$481.3 million) bond issuance programme for housing and urban development in Nigeria. 

The company plans similar bond issuances in East African markets including Kenya, Uganda, Tanzania, and Rwanda.

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