DRC clears US$1.7m capital arrears in Shelter Afrique, increasing its shareholding to 2.46%

DRC – The government of the Democratic Republic of Congo (DRC) has cleared its capital arrears in the pan-African housing development, Shelter Afrique, after paying the outstanding amount of US$1.7 million.

The move now takes DRC’s shareholding in the Company to 2.46%, up from 1.68% held previously.

In total, DRC paid US$4.1 million capital contribution last year, significantly increasing its stakes in the Company.

“We are grateful to the government of the Democratic Republic of Congo as this is a show of strong belief in the role and mandates of Shelter Afrique in the provision of affordable housing in Africa, and particularly the DRC,” Shelter Afrique Group Managing Director and Chief Executive Officer Andrew Chimphondah said.

“We are particularly appreciative of the roles played by the Minister for Urban Planning and Housing Hon. Pius Mukala and the Minister for Finance Hon. Nicolas Kazadi for making the disbursements.”

DRC now joins Tanzania, Morocco, Mali, Lesotho, Namibia, Togo and Zimbabwe as Shelter Afrique Class A shareholders who have fully paid their capital obligations.  

“We wish to show our gratitude to the 8 shareholders who have fully paid their capital subscriptions and to those who continue to increase their stakes in the Company – it is a huge vote of confidence in our Board approved strategy which is being implemented successfully by Management,” Mr Chimphondah said.

In the recent past, DRC has enhanced its engagement with Shelter Afrique. Consequently, the company has ramped up its activities in the country by actively pursuing large-scale, low-cost housing projects in DRC through public-private partnerships and equity investments.

Recently, Shelter Afrique approved a line of credit worth US$11.4 million to a financial institution to finance 285 mortgages in the country.

Shelter Afrique is also keen on supporting urban regeneration projects in Lubumbashi and Goma, which is expected to develop 500 housing units – the company has set aside US$20 million, pending board approval.

“Additionally, under our social housing plans, we are currently reviewing a housing project in Goma that seeks to develop 1000 housing units for families displaced by the eruption of Mount Nyiragongo and Kanyaja, which occurred in May and June 2021. When approved, we will invest US$1 million in equity for a period of 7 years,” Mr Chimphondah said.

Other projects so far financed by Shelter Afrique in the DRC include Devimco’s 7-floor office building for rental purposes, La Tradition, Le Concorde, L’Ambassadeur; Azda; and a 10-storey building in Kinshasa developed by ELOLO SPRL.

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