KENYA – The Government of Tanzania has increased its stake in Shelter Afrique after paying US$2.7 million in additional capital, the pan-African housing development financier has disclosed.
The additional stake now takes Tanzania’s shareholding to 1.54% up from 0.3% held previously.
Effectively, the contribution now reduces ownership of the top three shareholders with Kenya’s, Nigeria’s and African Development Bank’s shareholdings now standing at 17.78%, 13.27% and 12.83%, respectively.
Shelter Afrique Group Managing Director and Chief Executive Officer Andrew Chimphondah said it was gratifying to see the unwavering support and renewed confidence by shareholders.
“We thank the government of Tanzania for choosing to increase her stake in Shelter Afrique despite the prevailing condition, and in particular the Ministers for Housing and finance William Lukuvi and Mwigulu Nchemba for making the disbursements – It’s a vote of confidence in the Company. We are also grateful to other shareholders who have increased their stakes recently,” Mr. Chimphondah said.
In addition to Tanzania’s contribution the Company has also received additional capital contributions from Kenya (US$ 9.92 million), Cameroon (US$3,529,801.29) Mali (US$2,062,994), Rwanda (US$1.1 million), Uganda (US$0.08 million), Togo (US$0.58 million), Swaziland (US0.32 million), Ivory Coast (US$0.57 million), and Democratic Republic of Congo (US$0.5 million), bringing the total additional capital receipts to US$20.69 million within the last six months of 2021.
It’s a vote of confidence in the Company. We are also grateful to other shareholders who have increased their stakes recently”
“We also wish to thank several other shareholders such as Namibia, Zimbabwe Morocco, and Swaziland, Cameroon, Kenya, DRC, Mali, Ivory Coast, Uganda, Rwanda and Togo for their positive response to the call for recapitalization, this continues to show confidence in the strategy of the Company” Mr. Chimphondah added.
Shelter Afrique has approved financing of more than US$52,246,000 in Tanzania.
The pan-African institution invested equity into the Tanzania Mortgage Refinance Company (TMRC) in 2014 and has remained an active member.
The housing financier is actively pursuing large-scale low-cost housing projects in both Dodoma and Zanzibar through public-private partnerships and the provision of lines of credit
In August of 2021, Shelter Afrique through its Centre of Excellence, at the invitation of the Revolutionary Government of Zanzibar held a masterclass session for government officials to deepen capacity within the industry.
Similar conversations are being held to hold another one in Dodoma as well before the end of the year.
In the same period, Shelter Afrique, as part of its ongoing engagement with Tanzania, led a high-level delegation to meet with the Minister of Lands, Housing and Human Settlements, William Lukuvi and Ministry officials where discussions were held on the provision of land for projects featuring innovation and alternative building materials.
The Minister committed to the provision of 50 acres of land in Dar-es-Salam where an annual event showcasing the improvements and breakthroughs in the building sciences can be exhibited.
Shelter Afrique on its part has committed to developing the concept and will explore the possibility of hosting the first event in 2022.
Shelter Afrique is owned by 44 African countries and two development institutions—African Development Bank and African Reinsurance Corporation.
The firm in 2013 and 2017 signed up deals with shareholders to recapitalize the company through additional equity.
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
