Cameroon pumps Sh300 million into Shelter Afrique

Shelter Afrique headquarters. [Courtesy]

The Cameroonian government has increased its stake in the pan-African housing financier Shelter Afrique by pumping over Sh380 million into the organisation.

This ups the country’s shareholding by two per cent. "Shelter Afrique has received $3.53 million (Sh380 million) from the Government of Cameroon in additional capital subscription, increasing its shareholding by two per cent from the current shareholding of 3.61 per cent to the revised shareholding of 5.24 per cent," said the institution in a statement.

The move comes after Kenya acquired an additional stake in the firm - solidifying its position as the largest shareholder - after Treasury injected Sh984.4 million ($9.2 million) into the company.

Kenya’s stake in the firm stands at 18.72 per cent, ahead of Nigeria 13.71 per cent and African Development Bank 13.25 per cent.

The investment by the Yaounde regime comes after Cameroon recently ascended to the helm of the 44 member institution after the country’s Minister for Housing and Urban Development Celestine Ketcha Courtès was appointed to the Presidency of Shelter Afrique at an AGM held in Yaoundé, Cameroon in June this year.

Shelter Afrique Group Chief Executive Andrew Chimpondah lauded the country's support to the mortgage financier. “This is a demonstrable strong vote of confidence in the board of the company,” said Chimpondah.

The funding comes on the back of a recent development where Shelter Afrique shareholders agreed to recapitalise the firm by way of additional equity subscriptions.

Kenya and Cameroon's recent contribution brings the cash received in the last few years to over $96 million (Sh10 billion).

The firm confirmed receiving additional capital contributions from Mali (over $2 million), Rwanda (over $1 million), Uganda ($41,740), and Swaziland ($323,687), Togo ($580,000), Cote D’Ivoire ($569,295) and Kenya ($9.3 million).

The shareholding of Shelter Afrique comprises 44 African countries, African Development Bank and African Reinsurance Corporation.

The firm has also received additional capital from Mali $2 million (Sh222.48 million), Rwanda $1.1million (Sh118.8 million), Uganda $80,000 (Sh8.64 million), Togo $58,000 (Sh6.3 million), Swaziland $32,000 (Sh3.5 million), Ivory Coast $57,000 (Sh6.2 million) and DRC $500,000 (Sh54 million), bringing the total additional capital receipts to $18.02 million (Sh1.94 billion) within the last six months of 2021.