Shelter Afrique Gets $19m From European Bank

The European Investment Bank (EIB) has extended a €15 million ($19.5 million) finance facility to specialist development finance institution, Shelter Afrique.

The latter is a pan-African development finance institution that exclusively promotes the development of the housing and real estate sector in Africa.

The initiative will enable small and medium-sized companies involved in housing projects across sub-Saharan to access low cost funds through Shelter Afrique. This will enable them to provide affordable housing as well as water, sanitation and electricity, to communities in Africa.

This is the first housing partnership, between the European Investment Bank and Shelter Afrique, and the first direct engagement in the housing sector by the European Investment Bank in sub-Saharan Africa.

“There are acute shortages of affordable housing in many African countries that need long-term investment. This initiative will help address the significant challenges of low-cost housing, contribute to poverty reduction efforts and go a long way towards achieving the Millennium Development Goals,” said Pim van Ballekom, European Investment Bank vice president for sub-Saharan Africa.

It is expected that projects will be developed in a number of sub-Saharan countries, starting with the East African countries of Kenya and Rwanda, and that schemes will be integrated into relevant national and local urban development plans.

“To benefit from the programme, each housing project must be technically sustainable and financially viable. Priority will be given to development of affordable housing in urban centers and in areas linked to existing transport and basic infrastructure,” said Alassane Bâ, managing director of Shelter Afrique.

– The EastAfrican