Shelter Afrique Development Bank has begun piloting the construction of 370 housing units in Nasarawa Technology Village, Nigeria.
- Facilitated by InfraCredit, a specialized infrastructure credit guarantee institution, and a Shelter Afrique offtake agreement, will facilitate affordable, long-term home loans to eligible homebuyers.
- Under the financing guarantee structure worth 3 billion Naira, this venture marks a significant stride in addressing Nigeria’s housing deficit, with the overall project targeting the development of up to 1,200 housing units in Nasarawa State.
- Shelter Afrique Development Bank intends to pump 200 billion Naira into Nigeria’s Affordable Housing Credit Program.
“The Nasarawa Technology Village project underscores a successful example of public–private partnerships as a mechanism of unlocking climate financing for sustainable development,” said Chinua Azubike, InfraCredit CEO.
In the initial phase, Shelter Afrique is providing the 3 Billion Naira debt financing guarantee to Nigeria’s Modern Shelter Systems and Services Limited, under Nigeria’s comprehensive affordable housing program.
Available figures indicate that Nigeria, with a population projected to reach 400 million by 2050, faces a housing deficit estimated at 28 million units, requiring substantial investment.
- In early 2023, ShafDB debuted 46 billion Naira bond issuance in Nigeria’s capital market which was oversubscribed by 60.7%, reflecting a strong investor appetite.
- ShafDB’s debut bond issuance lays the ground for its local currency funding to mitigate foreign currency risk.
- Along with ShafDB’s anchor investment in the Housing Solution Fund (HSF), to address the demand side, Shelter Afrique is closing the loop on de-risking the housing ecosystem and value chain.
Shelter Afrique Development Bank’s Managing Director, Thierno-Habib Hann said, “As an institution, we are committed to scaling up interventions in Nigeria in an integrated model, mitigating off-take risks, and providing beneficiaries with more accessible, affordable, and longer-tenured financing options, ultimately fostering sustainable development and prosperity”.
In Kenya, the government has set up a mandatory Affordable Housing Levy, whose purpose is to provide funds for the development of affordable housing and associated social and physical infrastructure as well as the provision of affordable home financing to all Kenyans.
According to provisions of Kenya’s Finance Act 2023, the Affordable Housing Levy will not be used for any purpose other than the development of affordable housing and associated social and physical infrastructure as well as the provision of affordable home financing to all Kenyans.
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