NIGERIA – Shelter Afrique, a pan-African housing development financier, has received US$9.4 million from the Federal Government of Nigeria.

The additional capital injection from the West African Nation will be used by Shelter Afrique to support its various programs across the continent.

The investment in the Pan-African firm made Nigeria the second-largest shareholder behind Kenya.

Nigeria’s stake in Shelter Afrique has now increased to 14.77% from 7.4 % initially owned in December 2019.

In the top three categories of shareholders, Kenya, the host nation leads the chart with a 14.87% stake, followed closely by Nigeria at 14.77%, and AfDB at 14.28%.

According to a report by Nairametrics Shelter Afrique also received additional capital injections from Rwanda, Uganda, Lesotho, Mali, Namibia, Togo, Zimbabwe, and Swaziland.

Investment of additional capital follows a sequel of losses at the pan-African firm.

In 2018, Shelter Afrique recorded losses of US$8.68 million. The was followed by another loss-making period in 2019 where the firm sustained losses of US$460,000.

Although still in the red, Shelter Afrique was able to reduce its losses by about 94% in 2019 and this may have given its shareholders confidence to invest additional funds.

 “This is a strong show of confidence in Shelter Afrique by member countries, that the institution is now better governed, and has significantly improved its financial performance,” Managing Director of Shelter Afrique, Mr. Andrew Chimphondah said.

Shelter Afrique, also known as also known as Company for Habitat and Housing in Africa, is  jointly owned by 44 African governments, AfDB, and African Re-Insurance Corporation.

The firm offers a host of unique housing finance products and services, as well as practical advice and technical assistance to a wide range of industry stakeholders.

In March this year, Shelter Afrique announced that it has restructured loans granted to seven Kenyan home developers worth Sh3.1 billion (US$ 28.62 million), a move that exposed it to a cash flow loss of Sh85 million (about US$0.78 million).

Managing director Andrew Chimphondah said the board resolved to defer repayments until January 2021 to cushion the developers from the adverse impact of Covid-19 that has disrupted construction and slowed down economic activities.

Liked this article? Subscribe to DealStreet Africa News, our regular email newsletter with the latest news, deals and insights from Africa’s business, economy and more. SUBSCRIBE HERE