Shelter Afrique Development Bank (ShafDB), a pan-African housing financier, has inked a memorandum of understanding with the African Union (AU) aimed at bridging the housing gap on the continent with a key focus on urban settlements.
The Nairobi-headquartered firm, owned by African governments, said the deal, signed in Addis Ababa on Wednesday, will see the pair develop a joint action plan towards addressing housing challenges on the continent.
The plan will outline specific activities, timelines, and review mechanisms, and may include staff secondment arrangements and supplementary agreements to address emerging areas of mutual concern.
“This MoU marks a significant step forward in our shared vision of sustainable housing and urban development in Africa,” ShafDB managing director Thierno-Habib Hann, a Guinean, said in a press statement. “As a pan-African multilateral development bank focused on housing and urban development, we are confident that this collaboration with the African Union will scale our ability to create transformative solutions that address the housing deficit and enhance the quality of life for millions.”
The continent is estimated to have a housing financing gap of $1.4 trillion (about Sh182 trillion) to bridge a deficit of about 53 million housing units.
The two entities said the partnership will leverage innovative solutions, resource mobilisation, and policy development to create lasting impact, with a special focus on initiatives that support environmentally sustainable and climate-resilient communities.
“We welcome Shelter Afrique Development Bank as one of our strategic collaborators.
“Together, we shall enhance efforts to unlock Africa’s investable wealth and mobilise it towards meeting the continent’s housing deficit anchored on inclusive and sustainable urbanisation,” said Albert Muchanga, AU Commissioner for Economic Development, Trade, Tourism, Industry and Minerals.
