Pan African housing financier Shelter Afrique has received approval for a $28.2 million (Sh2.92 billion) injection from the African Development Bank.
This capital injection follows on from the $8.2million (Sh849.93 million) equity investment by AfDB, and the commitment made by the bank an extraordinary general meeting held in Nairobi on February 1.
“These new resources show that the African Development Bank 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,” AfDB director general for East Africa Gabriel Negatu said.
During Nairobi meeting, the financier got a go-ahead to implement a raft of measures to bolster its operations and push its agenda of promoting affordable housing.
Apart from the bridge financing from the AfDB, members approved a subsequent line of $20 million (Sh2.1 billion) to shore up Shelter Afrique in the short term.
Members also adopted the Deloitte forensic report and its recommendations, which exposed malpractices in the running of the company. The report linked top managers to massive looting of funds through creative accounting and subprime lending at the company.
The firm vowed to take action against top managers
“We made a very firm commitment to our shareholders and investors to improve our internal processes at the EGM, and they in turn made an equally firm commitment to support us in our mission of delivering affordable housing. Shelter Afrique acting managing director Femi Adewole said yesterday.