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Shelter Afrique, firm in affordable housing deal

shelter

Shelter Afrique CEO Andrew Chimphondah. FILE PHOTO | NMG

A financing arm of Habitat for Humanity International has committed to back housing financier Shelter Afrique in development of affordable housing in Kenya and 43 other sub-Sahara countries.

Habitat’s financial inclusion arm, Terwilliger Centre for Innovation in Shelter (TCIS), has set aside Sh10 billion ($100 million) to leverage the affordable housing projects globally

A memorandum of understanding was signed by Shelter Afrique’s CEO Andrew Chimphondah and Habitat for Humanity’s Associate Director for Capital Markets and Financial Inclusion Elena Milanovska in Nairobi.

The focus will be on the establishment of an incremental building fund for Africa, capacity building in housing microfinance and technical assistance.

The TCIS set up the micro-building fund to supply debt capital and technical expertise to help microfinance institutions increase the availability of housing loans to low-income customers.

“Shelter Afrique has signed a memorandum of understanding (MOU) with the Terwilliger Centre for Innovation in Shelter (TCIS)... which will see the TCIS assist Shelter Afrique in mobilising capital for affordable housing,” said Shelter Afrique.

“[The capital] will be extended to institutions focusing on provision of housing loans to low –middle-income population in Kenya and 43 other countries where Shelter Afrique has presence,” it added.

Habitat for Humanity International has invested more than Sh400 million in Africa from the microbuild fund and formalising the partnership with Shelter Afrique is expected to increase the investments in the continent.

“Research on housing finance options for Africa conducted by our Centre of Excellence has shown that the penetration of housing mortgage throughout Africa is quite low—meaning that the mortgage might not be the right option for low-middle income population. This partnership with Habitat for Humanity International gives Shelter Afrique an opportunity to add other innovative ways to finance housing development in the continent,” Mr Chimphondah said.

“There is shortage of affordable housing and there is also substandard housing. Habitat for Humanity International is excited to sign this partnership deal with Shelter Afrique as we see a lot of potential in addressing the growing.