Shelter Afrique has entered a deal with the government of Cameroon to set up a $15 millionIndustrial Housing Corporation (prefab factory) to provide low-cost construction materials for the construction of affordable housing.
The lender will finance the construction of the factory, which will produce building materials such as polystyrene block production plant, panel production plan and other associated equipment.
According to the lender, Cameroon has a huge deficit of contractors with adequate capacity and logistics, resulting in high construction costs, low building quality, and occasional delays in delivering large housing.
“We strongly believe that the establishment of Industrial Housing Corporation is the appropriate contribution by Shelter Afrique to address the problems facing provision of affordable housing in Cameroon through capacity building,” The East African quotes Shelter Afrique CEO Andrew Chimphondah.
The houses are manufactured in factories, usually in standard sections, which are then shipped and assembled on-site.
When established, the factory is expected to reach a minimum annual production capacity of 1,500 affordable houses. Once complete, Shelter Afrique will own a 51% stake in IHC, with the Cameroon government taking 49% shareholding.
Shelter Afrique is a pan-African housing financier owned by 44 member states, including Kenya, the host nation, the African Development Bank, and Africa Re. The firm has also invested in Kenya Mortgage Refinance Companies (KMRC).
The shareholders have in the last six months injected $2.5 million, helping it clear debt and plan for a $993.6 million bond offer.