Nigeria pays additional Ksh.838.7 million stake in Shelter Afrique to trail Kenya as major shareholder

Nigeria pays additional Ksh.838.7 million stake in Shelter Afrique to trail Kenya as major shareholder

Pan-Africa housing development financier, Shelter Afrique has received an additional Ksh.838.7 million capital subscription from the Federal Government of Nigeria.

The Additional stake now takes Nigeria’s shareholding to 15.8 percent, one-percentage-point behind top shareholder Kenya, which currently stands at 16.85 percent. 

The other top three shareholders of Shelter Afrique whose shareholdings now change include African Development Bank (AfDB), which now stands at 12.16% down from 12.71 %; Mali at 5.3% down from 5.54%; and Ghana at 5.05% down from 5.28%.

Shelter Afrique Ag. Managing Director & Chief Finance Officer Kingsley Muwowo said the move now places Nigeria in a good position to become the largest shareholder in Shelter-Afrique when the country fully meets its capital commitment.

“We are grateful to the government of Nigerian for their continued support and the importance they have placed on affordable housing. We are especially grateful to the Honourable Minister for Works and Housing Babatunde Fashola, Honorable Minister for State, Engineer Abubakar Aliyu, and Honorable Minister for Finance Dr. Zainab Shamsuna Ahmed, for their long term support and for honouring this significant payment. Additionally, we appreciate Nigeria’s active shareholder and board participation,” said Muwowo.

The relationship between Nigeria and Shelter Afrique has been growing in recent years. In September 2020, the institution received Ksh.1.1 billion additional capital subscription from Nigeria.

Fund-raising efforts

Other countries that have so far ramped up capital subscription in the Pan-African housing development financier in 2022 are Swaziland and Burkina Faso which paid Ksh.37.2 million and Ksh.4 m illion espectively, for additional stakes.

“So far, we have received $7,504,295.45 in additional capital from member States within the last six months of 2022.  We are grateful to our shareholders for this much-needed capital injection which will go a long way in strengthening the capital structure of the Company to support the ongoing fund-raising efforts to raise additional debt capital required to support project pipeline which now stands at US$1 billion across 44 member countries,” said Muwowo.

Shelter Afrique recently completed a debut ₦46 billion (US$110.7 million) Series 1 Fixed Rate Senior Unsecured Bond Issuance in Nigeria’s capital market under its Ksh.12.9 billion bond issuance programme for housing and urban development in Nigeria.

The Company plans similar bond issuance in East African markets including Kenya, Uganda, Tanzania and Rwanda.

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Lawrence Baraza is a prolific writer with competencies in Digital Media, Print, and Broadcast. Baraza is also a Communication Practitioner currently spearheading Digital content on Metropol TV's Digital Desk.

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