Early this month the African Development Bank (AfDB) disbursed an equity investment of US $8.2 million in Shelter Afrique, a Development Finance Institution investing in affordable housing for Africa. Shelter Afrique is owned by 44 African countries, together with the AfDB and African Reinsurance Corporation as shareholders. Last week, the Bank announced that it is also arranging for a further immediate loan of $20 million to the company to consolidate the position of the housing specialist for 2017 and beyond.
"These new resources show that the AfDB 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. Affordable housing is a key issue at the heart of the ‘High 5’ priorities for our Bank. At the same time, the AfDB takes issues of governance seriously. 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," said Gabriel Negatu, Director General at AfDB's East Africa Regional Development and Business Delivery Office.
Shelter Afrique had recently been in the news with speculation of overstated asset quality and substandard management operations. Following those allegations, the Board of Directors of Shelter Afrique took immediate steps and appointed a reputable firm to conduct an independent forensic audit. That investigation concluded in early January and recommended improvements in policy and processes which will be implemented by Shelter Afrique.
The AfDB’s High 5 priorities are: Improve the quality of life for the people of Africa; Light up and power Africa, Feed Africa, Industrialize Africa and Integrate Africa.