Pan African mortgage financier Shelter Afrique has mooted a new lending product to supplement its traditional products that attend to both the demand and supply sides of the housing value chain.
Acting Managing Director Kingsley Muwowo said Africa's gross domestic product (GDP) contraction resulting from the pandemic was a sign of slump in the inclusive housing goals in many countries.
This, he noted, saw the firm respond to the risk of a possible government disengagement while revitalising its financial agility. "Covid has brought in an era of economic distress throughout Africa with an average of -3.6 per cent recession in 2020, the first recession in sub-Saharan Africa in 25 years," Mr Muwowo said.
He was speaking at a three-day in-house capacity building on sovereign lending organised by the firm and facilitated by the African Development Bank (AfDB) through its training arm, the African Development Institute (ADI).
"In response, Shelter Afrique recently reviewed its corporate strategic plan aimed at aligning itself to its members' priorities and to position the company for better performance and enhanced development impact. One of the results of this strategy review is the decision to develop a sovereign lending product to serve our member States," he said. The firm offers project finance, institutional lending, equity investments and joint ventures, trade finance, and social housing, to support affordable housing and commercial real estate.
Through training, Shelter Afrique aims to expand its capacities for funds absorption from new business development, and carry out product design, development and support departments. ADI Manager Chidozie Emenuga said the partnership will help overcome the capacity constraint in Africa