Shelter Afrique Development Bank (ShafDB) has secured $120 million from Arab Bank for Economic Development in Africa (BADEA) to increase capital increase initiative among its member states.
It is a conscessional financing which will allow all member states to settle and increase their capital subscriptions to ShafDB.
ShafDB has 44 member states, among them Kenya with a 15% stake at a distant second from Nigeria which holds 17% stake.
Countries will access financing on competitive terms, helping expand the bank’s equity base and enhance its financial strength.
The facility will primarily be channeled towards affordable housing construction in these countries and enhance urban development.
“This agreement with BADEA marks a critical step in strengthening our capital base and advancing our mission of financing affordable housing and sustainable urban infrastructure across Africa,” said Thierno Habib-Hann, Managing Director of Shelter Afrique Development Bank.
The capital expansion program follows a two-tier allocation strategy—an initial equal distribution among all member states, followed by a phased reallocation based on pro-rata participation and a first-come, first-served model.
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The need for fresh capital comes at a critical time for ShafDB, following its official transformation into a full-fledged Development Bank—an institutional shift approved by shareholders during an Extraordinary General Meeting (EGM) in Algiers in October 2023.
This was further reinforced at the June 2024 Annual General Meeting in Kigali, Rwanda, where shareholders endorsed a capital increase program.
The board subsequently approved a capital raise exceeding USD 200 million in December 2024.
“BADEA is proud to back this initiative, and we remain committed to our shared mission of enabling access to decent housing and inclusive urban development across Africa,” said BADEA President H.E. Abdullah KH ALMUSAIBEEH.
The expanded capital base will enable the Bank to significantly scale up financing along the housing value chain, secure more competitive funding from both African and international capital markets, and reinforce its strategic role in tackling the continent’s housing deficit.
