Pan-African real estate financier Shelter Afrique, has signed a partnership with Habitat for Humanity’s Terwilliger Centre for Innovation in Shelter, to jointly avail funding for affordable housing projects in African countries.
The partnership was formalized in Nairobi by Shelter Afrique’s CEO Andrew Chimphondah and Habitat for Humanity’s Associate Director for Capital Markets and Financial Inclusion Elena Milanovska.
Funds will be targeting firms focused on provision of housing loans to the low – middle income population in Kenya and 43 other countries where Shelter Afrique operates.
The two institutions will seek to establish an incremental building fund for Africa, capacity building in housing micro-finance, and technical assistance through the partnership. Chimphondah said the partnership will enable them to promote more inclusive housing market systems with while making the affordable housing dream a reality across Africa.
“Our research on housing finance options for Africa has shown that the penetration of housing mortgage throughout Africa is quite low- meaning that the mortgage might not be the right option for low-middle income population.”
“We want to give Kenyans and other people in our other 43 member states the opportunity to have a dignified living and we believe this fund will make it easy for such people to access financing to build decent houses in their own area,” Chimphondah added.
Habitat for Humanity has established a $100 million micro-build fund that supplies debt capital and technical expertise to help micro-finance institutions increase the availability of housing loan products for their low-income customers.
Milanovska said that Habitat for Humanity International had invested more than $4 million in Africa from the micro-build fund, adding that the partnership with Shelter Afrique will make it easy for the organization to significantly increase its investment in Africa.