The African ministers of housing, urban planning, and development have pledged to support capital-raising initiatives by pan-African premier housing financier, Shelter Afrique Development Bank (ShafDB).
Speaking at a Ministerial Roundtable on Financial Innovations to Achieve Housing Affordability during the 43rd Annual General Meeting of Shelter Afrique Development Bank in Kigali-Rwanda, the ministers noted that the move would help the institution increase its social and developmental impact across its Member States.
“There is a need to strengthen Shelter Afrique Development Bank with a focus on addressing capital, improving financial stability, and fostering partnerships to enable the institution to fulfill its mandate and address the housing deficit across member States,” Namibia Minister of Urban and Rural Development, Erastus Uutoni said.
The ministers also called on countries, the private sector, and financial institutions to develop innovative and sustainable financing mechanisms to address the growing housing deficit in Africa and ensure access to affordable housing.
They also pledged to continue championing appropriate housing policies, institutional support mechanisms, public-private partnerships, innovation in housing finance, and infrastructure support in addressing the housing crisis in the continent.
“There is a need for a comprehensive approach that considers both the financial and economic aspects to overcome housing challenges. Affordable housing is key for family well-being and economic resilience,” said Mr. Jimmy Gasore, Minister of Infrastructure, the Republic of Rwanda, and the incoming ShafDB AGM Bureau Chairman.
Partnership with BADEA
During the roundtable, the Arab Bank for Economic Development in Africa (BADEA) submitted an innovative financing model for partnership between ShafDB, BADEA, and ShafDB member States through which the parties would partner to increase ShafDB’s capital to boost its activities and impact across Member States.
“I would like to thank BADEA for its interest in working with Shelter Afrique Development Bank and its member States to support the capitalization initiative and replenishment of ShafDB. This unique funding model will be key in supporting ShafDB to achieve its 2023-2027 Strategic Plan anchored on the VIRAL Model.” Shelter Afrique Development Bank Managing Director and CEO Thierno Habib Hann said.
Mr. Hann also noted that the initiative would help ShafDB enhance its financial strength, increase its social and developmental impact across its member States, strengthen the partnership between BADEA, ShafDB, and Member States, as well as help ShafDB in fulfilling its mandate of providing sustainable affordable housing.
He noted that the funding model presented a golden opportunity for all stakeholders, adding that several member States had already confirmed their interest in being on board through the BADEA-ShafDB-Member States partnership.
