Firm inks Sh430m housing deal with French financier

The facility will help about 4,000 families in Kenya own homes. [PHOTO: FILE/STANDARD]

By James WAnZALA

Shelter Afrique has signed a $5 million (Sh430 million) loan agreement with French development Agency, Agence Francaise de Development (AFD) to build more low-cost houses.

The loan will provide long-term financing to local microfinance banks for onward lending to low-income earners.

The facility will help about 4,000 families own homes. It was signed by the Managing Director of Shelter Afrique, Alassane Ba, the French Ambassador Remi Marechaux, and the AFD Regional Director  Mr, Yves Terracol.

“Shelter Afrique  is committed to ensuring adequate and affordable housing in Africa hence our commitment to social housing on the continent,” said Ba.

“We are pleased that low-income housing is receiving the attention it rightly deserves and we are commend AFD for their commitment in supporting housing project for the low-income group.”

Shelter Afrique has also extended credit line of Sh870 million ($10 million) to Banque Rwandaise de Development  (BRD). The facility will be used for mortgage loans to support affordable housing in Rwanda.

This is the third financial support to BRD for mortgage loans in three years for an amount totaling $18.5m (Sh1.565 billion.) 

The deal was signed in Kigali by Ba and Banque Rwandaise de Development chief executive Alex Kanyankole.

“With this new line credit, we expect 1,000 households at least will acquire their first home and pave the way to mobilise more financial resources to support the development of affordable housing,” said Ba.

“It will also entice positive impacts on the whole economy mainly for job creation in the construction sector.”

“This loan facility will strongly enhance BRD’s goal of bridging the sector’s high unmet financing needs therefore contributing towards meeting the housing deficit in the country,” observed Kanyankole.

“We are  committed to supporting investments in housing sector development to ensure availability of decent and affordable housing options for everyone in Rwanda.”