Shelter Afrique, the pan-African housing financier, is transforming into a development bank, seeking institutional investors to bolster its capital after rebranding last year. This transformation allows the institution to onboard private sector players, pension funds, commercial banks, and non-African financial institutions as shareholders, marking a significant evolution in its funding strategy.
The Nairobi-based lender is currently in talks with major financial institutions, including the Islamic Development Bank and the United States International Development Finance Corporation, to attract new investments. This move aims to diversify its capital base and secure sustainable funding sources beyond its current shareholders.
Thierno Habib Hann, CEO of Shelter Afrique, highlighted their strategy to diversify funding sources and expand their shareholder base, with upcoming discussions at the annual general meeting in Kigali. This meeting will ratify new articles of association, paving the way for admission of new investors and enhancing the institution’s financial stability.
Shelter Afrique currently faces a capital gap compared to its peers, with a share capital of $500 million, while similar institutions like Afrexim Bank and AfricaRe boast significantly higher capital bases. Despite this, Shelter Afrique is positioning itself for growth and greater impact across the continent.
This transition into a development bank signifies a new chapter for Shelter Afrique, aligning with its mission to address housing and infrastructure challenges in Africa. The institution aims to play a pivotal role in economic development and regional integration, supported by its diverse and inclusive shareholder structure.
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