By John Oyuke
Shelter Afrique has received Sh595 million ($7 million) from African Development Bank (AfDB) to deliver more housing to lower middle class households.
The funds would be channelled through Pan African Housing Fund (PAHF), a private equity fund sponsored by the Nairobi-based pan-African housing finance institution targeting lower-middle and middle-middle class residential housing market in Africa.
AfDB’s Private Sector and Microfinance Director Tim Turner said the equity investment is expected to create a total of 5,100 additional single- and multi-family housing units and rentals.
“By providing risk capital and access to an extensive network of developer and investment professionals, the PAHF’s investments will help improve living conditions for growing urban population,” he said.
According to the United Nations Habitat, it is projected that by 2050 more than half of Africa’s population will be urban, and African cities will host an expected 1.2 billion people.
AfDB Board of Directors approved the equity investment in the Pan African Housing Fund early this month. PAHF, sponsored by Shelter Afrique to address the need for sustainable housing delivery systems, seeks to address the existing deficit and meet the increasing investment needs for housing in sub-Saharan Africa.
Turner said PAHF would help local developers deliver housing development projects that address severe shortage of housing and corresponding infrastructure to keep pace with Africa’s fast-paced urbanisation.
“PAHF’s investments will have a meaningful impact in boosting the capacity of local private sector developers deliver commercial and residential infrastructure, while enabling governments address community urban planning challenges,” he added.
