Nigeria has increased its stakes in pan African housing development financier Shelter Afrique to the tune of 9.4 million dollars(Kshs 1.02 billion) becoming the second-largest shareholder after Kenya.
The additional capital injection is part of 29.43 million dollars (Kshs 3.16 billion) the West African country has committed to inject into the financier.
The contribution moves Nigeria to the second largest shareholding in the organisation with 14.77 percent of the shareholding, behind Kenya with 14.87 per cent and ahead of the African Development Bank at 14.28 percent.
Speaking in Nairobi, Shelter Afrique’s Group Managing Director, Mr Andrew Chimphondah lauded the government of Nigeria for its show of confidence in the institution and a stamp of approval for the organisation’s financial turnaround.
“This is a strong show of confidence in Shelter Afrique by member countries that the institution is now better governed and has significantly improved its financial performance. As a result, shareholders have supported the recapitalisation of the institution as demonstrated by Nigeria’s significant capital injection and contributions from Lesotho, Mali, Namibia, Nigeria, Rwanda Uganda, Togo, Zimbabwe, and Swaziland,” Group Managing Director Mr Andrew Chimphondah said.
Shelter Afrique is currently considering a 3 million dollar equity participation in the newly created Nigeria Mortgage Guarantee Company (NMGC) having already been instrumental in the creation of the Nigeria Mortgage Refinance Company (NMRC).
Other housing projects being considered are a Public-Private-Partnership with the Kaduna State 60,000 homes; this project is anticipated to create 300,000 jobs. The organisation is also in the final stages of providing lines of credits totalling USD$16 million to two Nigerian banks to create mortgages that will directly impact 4700 Nigerians.
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Speaking on the current pandemic, Mr Chimphondah noted that Shelter Afrique has been leading the advocacy for housing and infrastructure spending as a tool for post-COVID economic recovery.
“We believe that every crisis offers opportunities; we believe the construction of housing is a critical path to recovery after Covid-19. Traditionally, governments have invested in large infrastructure and construction projects. We believe that capital projects are an essential panacea to stimulating African economies. We already see this practice adopted in Nigeria”. Mr Chimphondah added.
Shelter Afrique is set to explore how construction and infrastructure development can boost the economy during its first-ever virtual Annual Symposium and AGM, which are scheduled to be held on the 15th and 17Th of September 2020 respectively.
Credit: https:www.kbc.co.ke
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