× Business BUSINESS MOTORING SHIPPING & LOGISTICS DR PESA FINANCIAL STANDARD Digital News Videos Health & Science Lifestyle Opinion Education Columnists Moi Cabinets Arts & Culture Fact Check Podcasts E-Paper Lifestyle & Entertainment Nairobian Entertainment Eve Woman Travelog TV Stations KTN Home KTN News BTV KTN Farmers TV Radio Stations Radio Maisha Spice FM Vybez Radio Enterprise VAS E-Learning Digger Classified Jobs Games Crosswords Sudoku The Standard Group Corporate Contact Us Rate Card Vacancies DCX O.M Portal Corporate Email RMS

Shelter Afrique eyes green bond to fund affordable housing projects

By Ferdinand Mwongela | Nov 28th 2019 | 2 min read
By Ferdinand Mwongela | November 28th 2019
Shelter Afrique CEO Andrew Chmphondah.

Pan African housing development financier Shelter Afrique is betting big on green financing to fund its affordable housing projects across Africa.

“Green financing offers cheaper options to fund projects whose bottom line directly impact the environment, like the construction, and as such we are making a strategic decision to add it to our funding mix,” said Shelter Afrique Chief Executive Officer Andrew Chimphondah.

Chimphondah said they would engage with their partners to access this funding for affordable housing in Africa in the coming year.

“There is a market for green financing in Kenya, South Africa and Nigeria since these countries have well established capital markets.

“For instance, Kenya capital market has the capacity to support green bond not just for Kenya but also for the east Africa region. However, most capital markets across Africa need to be strengthened,” Mr Chimphondah said.

Trends in Africa

Kenya’s first green bond issued by Nairobi-based property developer Acorn Holdings for the construction of student housing this year raised Sh4.3 billion. Egypt is expected to make a debut in the green bond market in 2020.

South Africa issued its first municipal green bond in 2014and the second green bond in 2017. Nigeria made a debut in the green bond market in 2017.

“Our research from Shelter Afrique Centre of Excellence indicates that Africa is urbanising at a very fast rate thus exacerbating the continent’s housing crisis.

“Our research also indicates that the continent requires more than $1.4 trillion in funding to be able to effectively address this growing housing crisis and innovative funding options like green bonds comes in handy,” the Shelter Afrique Chief Executive Officer said.

In a 2018 report, ‘Climate Investment Opportunities in Cities’, International Finance Corporation estimates a cumulative climate investment opportunity of $29.4 trillion across six key sectors in emerging market cities through 2030.

The IFC report also indicates that more than half of the world’s population lives in urban areas, a number that is expected to reach 70 per cent by 2050.  

Share this story
Intimate decor with a loveseat
The two-seater sofa is ideal for small houses with limited floor area.
China rejected Kenya's request for Sh32.8b debt moratorium
China is Kenya’s largest bilateral lender with an outstanding debt of Sh692 billion.