Shelter Afrique gets Sh2 billion shot in arm from AfDB
By Mumbi Kinyua | February 21st 2017
Cash-strapped African housing financier Shelter Afrique has received a $20 million (Sh2 billion) cash injection from Africa Development Bank (AfDB).
The bank said yesterday the funds are part of its plan to consolidate the position of the housing specialist for this year.
This is in addition to $8.2 million (Sh849 million) equity injection from the US in January.
“These new resources show AfDB is fully committed to the growth and development of Shelter Afrique, which plays a vital and unique role in the development of affordable housing across Africa,” said AfDB East Africa Regional Development and Business Delivery Office Director General Gabriel Negatu at a press briefing in Nairobi.
AfDB said the cash injection will put Shelter Afrique in a stronger position to finance an increasing number of projects whether directly or indirectly.
The development comes at a time when Shelter Afrique is fighting off allegations of mismanagement and that it has overstated its asset quality.
The allegations forced its erstwhile Managing Director James Mugerwa to step aside earlier this month. Following the coming into light of the allegations, the firm commissioned a forensic audit into the matter, leading to recommendations of policy improvements.
However, AfDB, while signing the deal with the financier, backed the housing financier to turn things around, saying it was taking a bold move to restore confidence.
“AfDB takes issues of governance seriously. With the strong measures taken by Shelter Afrique to improve its governance and the support of its shareholders, the company can move to the next stage of its development,” said Mr Negatu.
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