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November 15, 2018

Shelter Afrique to raise more money for affordable housing

PICTURE-PERFECT: New World Gardens estate off Nairobi-Namanga highway. Photo/JOSEPH JAMENYA
PICTURE-PERFECT: New World Gardens estate off Nairobi-Namanga highway. Photo/JOSEPH JAMENYA

 Housing financier Shelter Afrique has unveiled a new plan to enable deliver affordable housing through diversified funding options.

 The new strategy, titled Shelter Afrique Strategy Roadmap, will be implemented over five years, and will create 100 housing projects and 30,000 jobs. 

Under the plan, Shelter Afrique said it will extend 50 lines of credit to banks and micro-finance institutions to build 45,000 affordable houses, provide at least 30,000 mortgage loans and disburse 100 direct loans to private developers. 

In the new strategy, the financier targets to raise $1 billion(Sh305.42 billion) and Sh74.32 billion ($730 million) using various capital raising options, for onward lending to real estate developers.

 According to managing director James Mugerwa, the financier will implement its strategy using three pillars. 

The three pillars will include re-consolidation, growth and diversification, social impact and market will be built on regionalisation, market research and formation of a subsidiary to invest equity directly into affordable housing and promoting jobs and skills acquisition for women and youth. 

“Shelter Afrique is investing equity directly in affordable housing through the Pan African Housing Fund, and Tanzania Refinance Mortgage Company,” he said in an email interview.

The financier is conducting research on the African housing market needs, and plans to open offices in Zambia and Ivory Coast before the end of the year to reach more clients.

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