Pan-African mortgage lender Shelter Afrique has signed a Sh790 million loan with Uganda’s National Housing and Construction Company (NHCC) for the supply of affordable houses. Shelter Afrique said the $9 million loan will enable NHCC to increase its lending capacity for the low-end of the market.
“We are committed to supporting the government of Uganda in rolling out housing projects through a public private partnership that will pave way for possible increase in capital subscription to ensure effective intervention for Shelter Afrique in the Ugandan market,” said Shelter Afrique acting managing director Yekini Olayanju.
NHCC chairperson Agnes Kalibbala said the State housing agency also plans to borrow more from Shelter Afrique for more projects. Shelter Afrique has been borrowing from both the capital markets and development agencies to finance housing developments in the region with focus on the low-end of the market.
The lender signed a deal with the French Development Agency (AFD) in March which would cap loans at 13 per cent for end users.
READ: Shelter Afrique eases mortgage terms for low-end borrowers
AFD gave Shelter Afrique a €3.7 million (Sh442 million) grant to lend to housing co-operatives whose customers are in the low end of the market.