Nigeria recently invested about $9.4 million capital in Shelter Afrique, a Pan-African housing development financier, headquartered in Nairobi, Kenya. This takes its total stakes to 14.77%.
The investment in the Pan-African firm made Nigeria the second-largest shareholder behind Kenya. Nigeria’s stake increased to 14.77% from 7.4 % initially owned in December 2019. In the top three categories of shareholders, Kenya, the host nation leads the chart with a 14.87% stake, followed closely by Nigeria at 14.77%, and AfDB at 14.28%.
The company also received additional capital injections from Rwanda, Uganda, Lesotho, Mali, Namibia, Togo, Zimbabwe, and Swaziland in investing in the company.
The investment in the firm is sequel to its recurring losses, which caused a renewed call for the recapitalization of the firm. For example, Shelter Afrique recorded losses in both 2018 and 2019, to the tune of about Sh999.8 million. The percentage loss declined remarkably by -94.7% from the Sh940.8 million loss recorded in 2018 to about Sh50 million loss in 2019.
According to the Managing Director of Shelter Afrique, Mr. Andrew Chimphondah, “This is a strong show of confidence in Shelter Afrique by member countries, that the institution is now better governed, and has significantly improved its financial performance.”
Shelter Afrique, jointly owned by 44 African governments, AfDB, and African Re-Insurance Corporation, offers a host of unique housing finance products and services, as well as practical advice and technical assistance to a wide range of industry stakeholders.